With the major indices continuing to set fresh records, it can be tough for investors to feel comfortable buying into names already trading at highs. However, at the other end of the spectrum, it can be just as tough to buy into a stock that has been sinking like a stone—or, as Wall Street likes to say, to catch a falling knife.
Currently, two stocks firmly in that camp are and , which have shed close to half their value this summer.
Both have been investor darlings in recent years, with Duolingo’s AI–powered expansion driving excitement in ed-tech. At the same time, The Trade Desk’s programmatic advertising platform looked well-positioned to keep making gains in the digital advertising space.
But after months of selling pressure, both now carry the “falling knife” label. That begs the question: are these stocks worth catching, or should investors continue to run away?
