More than a year has passed since the Nasdaq Composite slipped into bear market territory, and the tech-heavy index is still 28% off its high. But smart investors know that drawdowns are a great time to buy stocks. Warren Buffett said as much in 2018, telling CNBC, "The best chance to deploy capital is when things are going down."

Roku (ROKU 4.29%) and Adyen (ADYE.Y 2.24%) have seen their share prices fall 87% and 55%, respectively, during the drawdown, but both stocks look attractive at their current prices.

Here's what investors should know.

Roku: Streaming entertainment

Roku introduced the very first streaming player in 2008, shortly after Netflix launched the first streaming service. That device was unique because it featured an operating system designed specifically for televisions. In fact, Roku OS is still the only operating system purpose-built for smart TVs, and purpose-built software tends to create a better user experience.

Indeed, Roku products often top streaming device purchasing guides, and Roku ranks as the fastest-growing brand in any product category among Gen Z consumers, according to Morning Consult. Better yet, Roku is the most popular streaming platform in the U.S., Canada, and Mexico as measured by streaming hours, and Roku OS is the top-selling smart TV operating system in those markets. That unmatched ability to engage viewers makes Roku a valuable partner to advertisers.

Unfortunately, many brands cut ad spending last year to compensate for softening consumer demand brought on by high inflation. That led to disappointing results from Roku. Revenue increased just 13% to $3.1 billion and the company reported a loss under generally accepted accounting principles (GAAP) of $3.62 per diluted share, down from a profit of $1.71 the prior year. But Roku should be able to revive growth in a more favorable economic environment.

The company is investing in licensed and original content for its ad-supported service, The Roku Channel, and those investments are paying off. Engagement with The Roku Channel jumped 85% in the fourth quarter, and it ranked among the top five channels on the platform in terms of viewership. Roku is also targeting the higher end of the television market with its recently launched lineup of smart TVs, which complement the more affordable models made by manufacturing partners like Hisense and TCL. Those growth projects should strengthen its already formidable competitive position.

Connected-TV ad spend in the U.S. alone is expected to increase 17% annually to reach $100 billion by 2030, according to BMO Capital Markets. Roku is perfectly positioned to capitalize on that opportunity. Yet shares currently trade at 2.7 times sales, much lower than the three-year average of 12.9 times sales. That's why investors should buy a small position in this growth stock today.

Adyen: Digital payments

Amsterdam-based Adyen specializes in payment processing, acquiring, and other financial services. The company helps merchants accept digital payments across physical and digital sales channels, and its platform includes adjacent solutions for risk management, revenue optimization, and data-driven insights. Adyen also empowers merchants to issue cards and offer business bank accounts to their own customers, making it a compelling partner for marketplace operators.

Investors should be particularly cognizant of the company's pricing strategy. Adyen makes money by taking a cut of each transaction, but the company maintains merchant loyalty by reducing its cut as payment volume increases. In other words, Adyen's take rate (i.e., revenue as a percentage of payment volume) has steadily decreased over time, and that trend will likely continue. But that pricing strategy has allowed Adyen to keep churn below 1% on a consistent basis, and it has helped the company win many big brands like Etsy, McDonald's, and Microsoft.

Adyen reported strong financial results in 2022 despite the challenging economic climate. Revenue rose 33% to 1.3 billion euros ($1.39 billion) and net income climbed 20% to 564 million euros. Better yet, management believes the company can maintain revenue growth between the mid 20% to low 30% range in the medium term, and it expects its margin of earnings before interest, taxes, depreciation, and amortization (EBITDA) to widen by 10 percentage points to 65% in the long term.

The investment thesis is straightforward: Adyen makes it easy for merchants to accept digital payments across physical points of sale, e-commerce websites, and mobile apps. Moreover, it offers a broader range of adjacent services than most payment processors, and its pricing strategy makes it a compelling (and sticky) partner for larger brands. With that in mind, digital payments revenue is expected to increase 21% annually through 2030, according to Grand View Research, and Adyen is perfectly positioned to benefit from that trend.

The shares now trade at about 4.9 times sales, a discount to the three-year average of 11.9 times sales. Investors should take that opportunity to buy a small position in this growth stock.