Tech Sell-Off: 2 Growth Stocks Investors Might Wish They'd Bought on the Dip
2026-10-23 12:09
•Anthony Di Pizio •The Motley Fool
•••• ••••• Axe Cap view
Tech Dip: Two AI-Driven Growth Stocks Worth Watching
A sharp pullback in AI stocks has left some quality growth names trading at more reasonable prices.
Last week’s 5.5% drop in the Nasdaq-100 dragged AI growth stocks lower, but that sell-off may have created openings rather than warnings. Take Duolingo, down 73% from its peak yet still showing robust daily user growth and integrating AI to boost engagement — that kind of user traction is rare in tech. SentinelOne also stands out. As AI-driven cybersecurity threats rise, SentinelOne’s revenue growth and cheaper price-to-sales ratio compared to peers suggest it’s undervalued. For South African investors, these themes have no direct listed matches; USD/ZAR dynamics remain critical as a weaker rand could amplify gains if these stocks recover. Still, global interest rates and US market sentiment could derail this rally, so caution is warranted before jumping in. this is just our opinion and not financial advice
We’d watch USD/ZAR closely and consider a small, speculative allocation to these names via offshore platforms on any further dips. Patience is key, as these stocks could remain volatile.
- DUOL
- S
- USD/ZAR
- US interest rate hikes causing tech sell-offs
- Rand volatility impacting offshore returns
6/10
AI stocks are experiencing a significant sell-off, with the Nasdaq-100 down 5.5% last week. The article identifies Duolingo and SentinelOne as potential bargain opportunities during this market downturn, as both companies are well-positioned to benefit from long-term AI adoption despite current market pressures.
Our take is based on reporting first published by The Motley Fool.