Investors know that tech stocks can have both positive and punishing implications for portfolios. As technology evolves, the competitive landscape can shift quickly. Hype-driven rallies can also lead to significant gains for a time, but they often result in harsh corrections.
Three notable tech stocks have dropped more than 60% from their 52-week highs—but which one offers the strongest potential for a meaningful recovery?
IPO Mania Fades Quickly at FIG
Figma (NYSE: FIG) got off to an incredible start after going public in July. Shares closed at $122 on Aug. 1, rising around 370% from their IPO price of $33. However, since then, the stock has traded almost straight down. As of Dec. 15, shares traded near $35, marking a 71% decline from their 52-week closing high. Ultimately, Figma’s decline has more to do with having an elevated valuation in the first place rather than its business performing poorly.
Revenue grew briskly at 38% last quarter, and the company raised both sales and operating profit guidance for the full year. Figma added more than 1,000 new paying clients, bringing its paid client count to just over 12,900. However, the company is also investing significantly in artificial intelligence (AI), placing great pressure on its adjusted free cash flow margin. Notably, this figure decreased from 31% a year ago to 18% last quarter. Even after a huge decline, Figma still trades at a very high forward price-to-earnings (P/E) ratio of over 150x. This creates significant potential for shares to continue facing pressure.
CoreWeave Drops More Than 60% Below Its High
Next up is neo-cloud operator CoreWeave (NASDAQ: CRWV). The company’s relationship with NVIDIA (NASDAQ: NVDA) has benefited the stock greatly. NVIDIA has a significant investment in CoreWeave, inspiring confidence among investors. NVIDIA also provides CoreWeave access to its most advanced computing systems, which are in short supply.
In mid-June, CoreWeave reached its 52-week closing high near $183. However, the stock has been on a steep downward trajectory since the end of October. CRWV closed near $72 on Dec. 15, down 61% from its high. This has been due to a general decline in many stocks, where speculation has played a large role in their appreciation. CoreWeave’s Nov. 10 latest earnings didn’t help either, with the stock plummeting 16% the next day as the firm cut its revenue guidance for 2025.
CoreWeave has a massive backlog of around $55 billion, nearly 13 times more than the revenue it generated over the past 12 months. However, the company also has $18 billion in debt and spent nearly $10 billion on capital expenditures in the last 12 months. Given the rising scrutiny surrounding companies involved in AI infrastructure, things could get considerably worse at CoreWeave before they get better. CoreWeave is not expected to generate a profit over the next 12 months and thus does not have a forward P/E ratio associated with it.
Amazon Worries Leave TTD Down Over 70%
Last up is The Trade Desk (NASDAQ: TTD). The stock closed near $36 on Dec. 15, down 73% from its 52-week high. The Trade Desk shares were absolutely battered after the company’s Q2 2025 earnings report, dropping 39% on Aug. 8. This came despite the company beating estimates on sales and missing on adjusted EPS by only one cent.
Investors seemed ready to crush The Trade Desk shares on any slip-up, based on fears of competition from Amazon.com (NASDAQ: AMZN). Amazon has been scaling up its demand-side advertising platform, taking direct aim at stealing The Trade Desk’s clients. Clearly, a battle with Amazon is not something that any company wants. The prospect of The Trade Desk clients migrating to Amazon is alarming, raising concerns about the company's future growth rate.
Still, at current levels, markets seem to be pricing in an unwarranted level of pessimism. Despite slowing growth, The Trade Desk’s margins are rock solid, and its total addressable market keeps growing. The Trade Desk’s forward P/E ratio of around 18x is the lowest in its history. It is also far below the 28x forward P/E of the S&P 500 tech sector.
TTD Comes Out on Top
Among the three, The Trade Desk appears best positioned for a meaningful rebound. While Amazon’s growing ad presence poses a legitimate challenge, the scale of TTD’s decline looks disconnected from its fundamentals.
With resilient margins, a growing addressable market, and a forward P/E well below sector averages, The Trade Desk offers the clearest path to recovery—and potential outperformance if sentiment shifts.
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The article "3 Tech Stocks Down Over 60%—Which One Is Worth Buying?" first appeared on MarketBeat.
