2 Excellent Stocks to Buy on the Dip

Yahoo Finance ·

Many investors are chasing after artificial intelligence (AI)-focused companies that have already gained substantial market value this year. That's not a bad strategy, considering the AI industry may maintain its momentum for a while and reward these leaders even more. However, it's also important for investors to consider companies that haven't performed well recently. There may be opportunities to pick up attractive stocks on the dip. In fact, here are two great examples: Netflix ( NFLX 1.29% ) and Shopify ( SHOP 2.45% ) . Here is why these companies are worth investing in right now. Netflix stock recently hit a 52-week low. A poor second-quarter guidance and the departure of Reed Hastings -- who will no longer have any role at the company after co-founding and helping lead it as its co-CEO for a long time, and being a member of the board for the past few years -- are spooking investors. However, now that the stock has declined by 43% over the past 12 months, Netflix's shares look very attractive. Let's consider four reasons why. First, it's not uncommon for Netflix's shares to drop significantly after earnings. But the company tends to rebound. Investing in Netflix's stock after a major sell-off has generally been an excellent idea. True, the past is no guarantee of future performance, but Netflix's business still has what it takes to perform well. Which brings us to our second point: Netflix's position in streaming remains strong, even though competition has intensified significantly since the turn of the decade. But Netflix has adapted. It offers multiple subscription options to cater to customers of all types, including price-sensitive ones. It also boasts a deep user base whose viewing habits and preferences help it craft its strong content strategy. That's why Netflix continues to attract new members. As of the end of 2025, the company had over 325 million paid subscriptions.

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