Shares of many growth stocks skyrocketed on Thursday. Some notable movers included data-driven ad buyer The Trade Desk (NASDAQ:TTD), social network Twitter (NYSE:TWTR), visual search engine Pinterest (NYSE:PINS), and human capital management-software company Workday (NASDAQ:WDAY).

These tech stocks saw the following moves on Thursday:


Intraday High

Change by Market Close

The Trade Desk












Data source: Google Finance.

While the overall market was up on Thursday, it didn't rise nearly as sharply as these stocks. Highlighting the market's move, the S&P 500 rose 0.5%, but the tech-heavy Nasdaq rose 2.3%. Many tech stocks with rapid revenue growth -- like The Trade Desk, Twitter, Pinterest, and Workday -- saw their shares jump even faster.

A chart showing stock prices moving higher

Image source: Getty Images.

Rebounding from an overreaction?

It's not too surprising to see growth stocks rising sharply on Thursday, as many of them have been hit particularly hard during this coronavirus sell-off. Shares of The Trade Desk and Pinterest, for instance, are both down more than 45% over the last 30 days -- and that includes today's sharp gains. Workday and Twitter stocks are down 36% and 38%, respectively, over this same time frame. All of these declines compare to the S&P 500's 29% pullback during this period.

A sharp jump in the prices of growth stocks like these four tech stocks is likely a reflection of some investors betting that these stocks were oversold during the coronavirus market crash. These stocks are significantly cheaper than they were a month ago.

Let's single out one of these companies as an example of why some growth stocks may be worthy of a rebound at this point. The Trade Desk's price-to-sales ratio has fallen from well over 20 before the coronavirus panic to about 12 today. Yet the company guided for first-quarter revenue to increase 40% -- an acceleration from 35% revenue growth in Q4. Further, The Trade Desk boasts an impressive net margin of 24%.

Finally, in a recent interview with CNBC Mad Money's Jim Cramer, The Trade Desk CEO Jeff Green argued that a weakened consumer due to the coronavirus outbreak's impact on the economy could potentially benefit the company as marketers become more deliberate in their ad spend. The Trade Desk's programmatic advertising, therefore, could see increased demand as marketers look for ways for their ad spend dollars to go further. Trade Desk's sub-$8 billion market cap gives investors a great entry point into a high-quality, fast-growing company.

Of course, there's no guarantee that these four growth stocks have bottomed. But they are certainly more attractive than they were a month ago.