Following a short pause, the broader market slump seems to be back in action, with past favorites taking the lead once more.
Experienced investors often remind us that such downturns can present valuable buying chances.
With this context in mind, let’s dive into three growth stocks that are currently undervalued and might be worth considering for long-term investment during this market correction. Here they are, not ranked in any specific order…
1. UiPath
The situation isn’t exactly a mystery. UiPath has seen its stock drop over 40% since hitting a peak last December. Many AI stocks started facing challenges around that period as the excitement began to clash with tangible financial realities, and UiPath fits that mold. Interestingly, it stands as one of the industry’s early trailblazers.
This is why I believe this stock has potential. Even though rivals have attempted to copy its features, UiPath’s vision for automated workflows remains the most user-friendly.
In essence, UiPath provides organizations with tools to automate various manual computer tasks that usually take a lot of time. Tasks like backing up data, processing invoices, and streamlining inventory management—including forecasting future needs—are all within its tech capabilities.
The market seems to appreciate these efforts, as evidenced by UiPath converting $481 million in revenue into a non-GAAP operating income of $150 million in the last quarter of the previous year, marking a year-over-year growth of 14% and 12%, respectively. The recent drop in the stock price mainly reflects a sector-wide trend. Priced under 14 times this year’s expected earnings per share, it seems plausible that the decline might soon hit its floor.
2. Remitly Global
You’d think that in this digital age, transferring money internationally would be straightforward—but it’s still quite complicated.
Enter Remitly Global, which is making it easier. The money transfer industry is heavily regulated to avoid scams and unauthorized transactions, but Remitly’s platform simplifies cross-border payments much like PayPal, Cash App, and Zelle do—handling all the complex logistics behind the scenes. If a transaction isn’t permitted, it won’t process.
In the final quarter of last year, Remitly experienced a 19% year-over-year increase in the number of active customers, totaling 9.3 million, while remittance volume surged 35%. Overall revenue climbed 26% to $442 million, drastically narrowing a previous year’s loss from $5.7 million to $41.2 million. Analysts predict continued growth in the coming years. The stock’s recent rise from a low last February seems like quite a fortunate break.
3. Meta Platforms
Last on our list is Meta Platforms, the parent company of Facebook, which has seen a 28% decline since its peak in August.
The reasons behind this drop are clear. While Meta isn’t primarily an AI company, artificial intelligence plays a vital role in its future strategies. For example, Meta AI, an AI-driven chatbot, is now accessible directly within Facebook, reducing the need for users to shift to competing platforms like ChatGPT or Google’s Gemini.
Additionally, Meta is utilizing AI to enhance its core advertising services. Given its involvement in the AI wave, it’s not surprising that investors often lump Meta with other tech companies deeply invested in AI.
However, this broad categorization overlooks some crucial differences. Many firms are focused on developing standalone AI products reliant on market demand for specialized hardware and software. In contrast, while Meta does work on high-speed networking for AI data centers, it remains the top social networking site globally and is effectively leveraging AI to boost its already successful business.
The results speak for themselves—during the fourth quarter of 2025, Meta’s revenue growth accelerated to 24%, supported by user growth and a 16% year-over-year rise in average revenue per user. This aligns with a marked increase in total ad impressions during the same period.
Therefore, instead of solely seeking stocks in companies that are developing AI solutions, investors might be better off looking for companies like Meta that are applying these technologies in a constructive way.
