The Last Time the Nasdaq Sold Off Like This, These Were the Best Stocks to Own. Here's What They Tell Us About 2026.

So far in 2026, the Nasdaq Composite has experienced a 5% pullback. Cooling investor sentiment, shifting expectations around interest rates, and selective profit-taking in high-valuation names has driven outsized pressure on growth stocks.

The current drawdown echoes sharper historical episodes -- notably the bear market in 2022, which saw the Nasdaq plummet more than 30%. While speculative names plunged under the weight of rising inflation and interest rate hikes, the last time the Nasdaq sold off offered a rare reminder that not all growth stocks suffer equally.

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Some companies proved their resilience following a harsh year in 2022. Examining these outperformers underscores a number of timeless investing principles during periods of stock market turbulence. These rules can certainly be applied in today's environment as smart investors seek buying enduring, quality businesses on weakness.

Examining the parallels of the 2022 Nasdaq drawdown

In 2022, a combination of skyrocketing inflation, aggressive interest rate hikes by the Federal Reserve, and geopolitical tensions across Europe and the Middle East created a brutal selling storm among growth stocks. Throughout the year, premium-priced stocks witnessed dramatic compression in their valuation multiples. With the Nasdaq losing nearly one-third of its value, the index experienced its worst annual performance since 2008.

What investors may not realize, however, was that the selling pressure was uneven. What do I mean by that? Well, companies that lacked immediate earnings driven by sustainable competitive advantages suffered most. In contrast, companies that still managed to generate positive cash flow due to their ability to provide essential products proved more durable.

This disparity highlights a key truth: During periods of macroeconomic fragility, business fundamentals matter far more than narratives and growth stories.

Which Nasdaq stocks thrived during the 2022 bear market?

Despite the lackluster headline index figure, some Nasdaq stocks demonstrated relative strength in 2022.

Microsoft (NASDAQ: MSFT) fell about 28%, much better than the Nasdaq's 33% decline. The company's edge came from providing its customers with critical services -- namely, cloud infrastructure and productivity software. These services command high-margin, recurring subscriptions and generally witness steady demand even during periods of abnormal macro stress.

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Similarly, Apple (NASDAQ: AAPL) declined about 26%. The company was supported by its ecosystem, which featured growing services revenue and unparalleled customer loyalty to the brand.

On the defensive side of the house, Costco Wholesale (NASDAQ: COST) witnessed a more modest decline of 19%. The company's membership-driven model, pricing power in inflationary environments, and primary focus on household staples helped make it a priority among consumers even during a cloudy economic storm.

The main takeaway here is that each of these companies succeeded because they have built formidable moats supported by key pillars: Recurring demand, operational efficiency, and the flexibility to align with secular shifts across digital and retail environments. This underscores the idea that high-quality businesses can adapt and manage to generate robust earnings even when speculative momentum fades.

What history teaches about buying stock market dips

Looking at these companies post-2022 delivers a compelling lesson. Microsoft, Apple, and Costco have generated exceptional results since their lows four years ago.

MSFT data by YCharts.

Collectively, these companies not only recovered but managed to thrive as stocks rebounded beginning in 2023. This type of performance drives home a core investing principle: Buying the dip in high-quality, blue chip stocks featuring structural and technological advantages often generates market-beating returns in the long run.

Historically speaking, stock market drawdowns always give way to new highs that are fueled by eventual economic expansion and business innovation. This pattern helps solidify a broader trend: Stocks move higher over multi-year time horizons.

In my eyes, these same stocks -- or their thematic peers -- are poised for further gains because their underlying drivers remain intact. In reality, short-term volatility often creates lucrative opportunities to profit. However, it's patience and selectivity that separate the most successful investors.

Just as in 2022, I think the Nasdaq sell-off of 2026 provides a clear message: Dips are not meant to be feared, but rather provide rare entries to embrace quality businesses focused on the years, not months, ahead.

Adam Spatacco has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Microsoft and is short shares of Apple. The Motley Fool has a disclosure policy.