It appears the recent weakness in growth stocks—beyond names like Duolingo, Expedia, and Nebius—has been broad-based, with advertising-dependent companies such as Pinterest and The Trade Desk hit especially hard. This may reflect a combination of macro pressures (interest rate uncertainty, slowing ad spend growth) and stock-specific concerns (valuation compression after strong 2023–early 2025 runs).

If you had minimal exposure or were hedged via short positions, this would indeed have been an opportunity to either protect gains or profit from the downside. That said, the challenge now is distinguishing between structural damage to certain business models and temporary sentiment-driven sell-offs.

Potentially oversold candidates (on a valuation-to-growth basis) could include high-quality names with strong balance sheets and recurring revenues that have been caught in the broader tech correction—examples might be Cloudflare (NET) or Shopify (SHOP), which have solid long-term prospects but have seen steep multiple compression.

Risk in “buying the dip” now:

If the market’s elevated levels are more due to narrow leadership (mega-cap tech) and broad earnings growth slows, the “dip” may deepen, making it a falling knife scenario.

Waiting for clearer technical stabilisation (e.g., basing patterns, volume-supported reversals) could help reduce downside risk.

Scaling in gradually, rather than committing all capital at once, is often prudent in volatile conditions.