Nasdaq Sell-Off: 2 Stocks to Buy on the Dip and Hold for 5 Years
On Thursday, Nov. 5, two days after the U.S. midterm elections, the tech-heavy Nasdaq Composite dropped by more than 5%, its worst single-day dip in over a year. The reason behind the sharp sell-off is no secret. Democrats emerged as the winners of the midterm elections, and now that they control both chambers of the U.S. Congress, investors are worried about what that means for artificial intelligence (AI) stocks. That’s a reasonable worry, but even in this environment, there are attractive stocks worth buying and holding onto at least for the next five years. Here are two great examples to consider: Shopify (SHOP +1.81%) and Axsome Therapeutics (AXSM +5.87%).
Image source: The Motley Fool.
1. Shopify
Shopify is proving its resilience. Despite a challenging macroeconomic landscape and the threat AI poses to its business, the company’s financial results have been pretty strong. In the third quarter, Shopify’s revenue increased by 32% year over year to $3.7 billion, driven by a 29.5% increase in gross merchandise volume (GMV) to $119.1 billion.
The company’s gross profit jumped 28% year over year to $1.8 billion, while its net income, excluding the impact of equity investments, was $584 million, up 59% compared to the year-ago period. Shopify also posted free cash flow of $816 million at a 22% margin, versus $507 million in the third quarter of 2025 at an 18% margin. Management noted that AI-powered searches are helping boost the company’s GMV and revenue.
SHOP – Shopify
$149.26+$2.65 (+1.81%)
NASDAQ · As of 4:00 PM ET 11/11/26
Shopify has built AI tools to help users find what they want more easily and to help merchants automate tasks and better reach customers. The results are showing up in the company’s numbers. But we may still be in the early innings of this tailwind. AI has only just begun to change how people shop — with agents aiding search and purchases — and Shopify is positioning itself to capitalize on this as it becomes more common.
Meanwhile, there remains a massive white space in the e-commerce industry. E-commerce transactions still account for fewer than one in five retail transactions in the U.S. Besides doubling down on AI tools, Shopify boasts a deep ecosystem of merchants whose feedback helps it improve its product offering.
This grants the company a competitive edge through network effects. The stock is down 6% this year, but it has performed well since mid-May, and could beat the market over the next five years.
2. Axsome Therapeutics
Axsome Therapeutics is a biotech company focused on central nervous system diseases. The drugmaker has outperformed the broader market over the past five years and is well positioned to do so again. Axsome Therapeutics’ portfolio of drugs includes Auvelity, currently its biggest growth driver, Sunosi, and Symbravo. Auvelity is approved for depression as well as agitation associated with Alzheimer’s disease (AD).
It helped drive strong results during the third quarter. Axsome Therapeutics’ revenue increased 52% year over year to $259.7 million. Auvelity’s sales jumped 53% year over year to $207.6 million. The medicine is inching closer to a $1 billion annual revenue run rate. It received the label expansion in AD agitation earlier this year, and this new indication already seems to be having an impact.
AXSM – Axsome Therapeutics
$149.24+$8.27 (+5.87%)
NASDAQ · As of 4:00 PM ET 11/11/26
Axsome Therapeutics noted that, during the third quarter, Auvelity’s new-to-brand prescriptions jumped 44% year over year and 21% quarter over quarter, but the same metric among patients 65 and older soared 211% year over year and 99% quarter over quarter.
Management pointed out that “Sequential increases over the past 2 quarters more than doubled the average quarterly increase prior to label expansion in Alzheimer’s disease agitation.” This is a great sign for the company, especially given the large, unmet opportunity in the AD market.
Axsome Therapeutics could help fill this need, and the company should launch at least a couple of new products, including AXS-12, a medicine for cataplexy in patients with narcolepsy that could earn approval next year.
Axsome Therapeutics boasts several other products in Phase 2 or Phase 3 studies that could support additional approvals or label expansions. Clinical and regulatory milestones, along with strong revenue growth, could jolt the stock and enable Axsome Therapeutics to outperform the market through 2031.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 835%* — a market-crushing outperformance compared to 208% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of November 11, 2026.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.