Nasdaq Sell-Off: 2 Stocks to Buy on the Dip and Hold for 5 Years

Two days after the U.S. midterm elections on Nov. 5, the tech-heavy Nasdaq Composite experienced its worst single-day dip in over a year, plummeting more than 5%. The sharp sell-off was driven by investors' concerns about the impact of Democrats' win on artificial intelligence (AI) stocks. However, amidst this market turbulence, there are two stocks that stand out as attractive buys and potential long-term holdings: Shopify (SHOP) and Axsome Therapeutics (AXSM).

Shopify's financial results have been strong despite the challenging macroeconomic environment and the potential threat AI poses to its business. In the third quarter, Shopify's revenue climbed by 32% year over year to $3.7 billion, fueled by a 29.5% increase in gross merchandise volume (GMV) to $119.1 billion. The company's gross profit surged 28% year over year to $1.8 billion, while net income, excluding equity investments, grew by 59% to $584 million compared to the previous year.

Shopify's free cash flow stood at $816 million, with a 22% margin, compared to $507 million in the third quarter of 2025 at an 18% margin. The company attributes its success to AI-powered searches and tools that enhance user experience and streamline merchant operations. Shopify's growth potential is further amplified by its deep ecosystem of merchants, which provides network effects and a competitive advantage.

With the e-commerce industry still representing fewer than one in five retail transactions in the U.S., Shopify is well-positioned to capitalize on the expanding market. The stock has experienced a 6% decline this year but has shown resilience since mid-May and has the potential to outperform the market over the next five years.

Axsome Therapeutics, a biotech company specializing in central nervous system diseases, has consistently outperformed the broader market over the past five years and is expected to continue doing so. The company's portfolio of drugs includes Auvelity, Sunosi, and Symbravo. Auvelity, currently its most significant growth driver, is approved for depression and agitation associated with Alzheimer's disease (AD) and has driven strong results in the third quarter.

Auvelity's revenue increased by 52% year over year to $259.7 million, with sales of the medicine jumping 53% year over year to $207.6 million. The approval of a new indication for AD agitation has already begun to impact Axsome Therapeutics' sales, with Auvelity's new-to-brand prescriptions rising by 44% year over year and 21% quarter over quarter, while among patients 65 and older, the metric surged 211% year over year and 99% quarter over quarter.

Axsome Therapeutics' management highlights the sequential increases over the past two quarters, which more than doubled the average quarterly increase prior to the label expansion in AD agitation. This growing market opportunity positions the company for continued success, and the drugmaker is expected to launch at least a couple of new products, including AXS-12, a medicine for cataplexy in patients with narcolepsy that could receive approval next year.

With several other products in Phase 2 or Phase 3 studies, Axsome Therapeutics is well-positioned to launch additional approvals or label expansions, potentially jolting the stock and enabling it to outperform the market through 2031.