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In the past few weeks, many growth stocks have been absolutely annihilated. As ever though, this simply creates opportunities to buy high-quality growth stocks at much lower prices.
Here are two that have fallen more than 40% within a year. For investors willing to take a longer-term view, I think both are worth considering buying today.
All at sea
Sea Limited‘s (NYSE:SE) stock has crashed 45% since September, and is now trading under $110. This is disappointing because I bought its shares at $128 just before Christmas.
This doesn’t worry me however, because I aim to invest for a minimum of five years. And over this sort of timeframe, I remain bullish on the company’s prospects.
Sea Ltd operates three high-growth business segments: e-commerce, digital entertainment, and fintech. Its Shopee app is the most popular e-commerce marketplace in Southeast Asia, while its Garena platform owns hit battle royale game Free Fire. The fintech unit (Monee) offers credit and other digital financial services.
In the third quarter, the company’s revenue jumped 38% to $6bn, including 60% growth in the fintech business. Net profit soared 145% to $375m.
What’s exciting here is that Monee is growing strongly outside the Shopee platform. And looking ahead, the long-term opportunity to expand credit and insurance products across markets such as Brazil, Indonesia, Vietnam, Thailand, Malaysia, and the Philippines is massive.
According to research by Bain, Google & Temasek, over 70% of Southeast Asia’s 570m adult population is still unbanked (no bank account) or underbanked (limited access to financial services).
E-commerce competition’s a risk though. It’s going head-to-head with TikTok Shop and Alibaba’s Lazada in Asia, and MercadoLibre in Brazil. Also, the firm’s profit margins can fluctuate as it invests to capture the long-term opportunities ahead. Volatility’s a given with this stock.
With e-commerce and digital finance penetration in our markets still low but increasing, strong growth lays the best foundation to maximize our long-term profitability.
CEO Forrest Li.
After the sharp pullback, Sea stock’s now valued cheaply, with a five-year price/earnings-to-growth (PEG) ratio of just 0.4. For context, the ballpark figure for fair value is 1.
A huge discount in the FTSE 100
Turning to the FTSE 100 now is RELX (LSE:REL), the owner of data and research platform LexisNexis. The group’s share price has collapsed 25% year to date, the worst Footsie faller in 2026, and a shocking 45% since May.
The fear here is that law firms will start using AI tools for legal tasks instead of paying for a LexisNexis subscription. However, analysts at UBS reckon this risk is overblown. They estimate that the vast majority of RELX’s revenue isn’t at risk of AI disruption and if anything, most of its business is set to benefit from the technology.
I agree. After all, AI models are only as good as the data they are trained on or can access. RELX owns vast, proprietary datasets in the legal (LexisNexis), scientific (Elsevier), and other sectors.
Meanwhile, RELX has launched its AI-powered research tools, which are experiencing strong adoption among customers. So the sell-off appears to be completely overdone.
The stock’s currently going for 15.5 times forward earnings, which is a massive discount to the past decade. RELX also now sports a forecast 3.3% dividend yield.
