If you’ve followed the equities sector for a few years now, you’ve almost certainly heard the exhortation not to catch a falling knife. Well, today, we’re going to actively dismiss that notion and consider a few Nasdaq stocks to buy on the dip.

A world-famous exchange that caters toward the technology and innovation sectors, you can find plenty of exciting opportunities here. On the other hand, several risks abound because many of these public firms tend to be exclusively growth oriented. At the same time, if you have an iron stomach capable of handling wild volatility, you can possibly pick up some great deals with Nasdaq stocks to buy on the dip.

For contrarians, a major factor to consider is the performance of the namesake index, which is down 25% on a year-to-date basis. In contrast, the benchmark S&P 500 index is down 17% over the same period, just a hair below the 20%-down threshold that signifies the start of a bear market cycle.

Put another way, these Nasdaq stocks to buy on the dip are aggressive, but they can also lead to substantial rewards.

PayPal (PYPL)

One of the world’s most popular financial technology (or fintech) firms, PayPal (NASDAQ:PYPL) enjoyed a meteoric ascent throughout much of the post-coronavirus new normal. At its peak, PYPL stock was trading for several dollars above the $300 level. That’s quite remarkable when you consider that during the spring doldrums of 2020, PYPL was trading below $90.

However, myriad headwinds, including global recession fears, soaring inflation (and the subsequent erosion of purchasing power) and rising competition in the fintech space contributed to the downfall of PYPL. Currently, shares are exchanging hands below their average price levels seen in March 2020. Nevertheless, despite the turmoil, PayPal could be one of the Nasdaq stocks to buy on the dip.

Essentially, PayPal enjoys significant brand power, being counted among the top businesses listed on the Fortune 500. Therefore, the competition headwind might be overplayed. Also, the burgeoning gig economy — a sector that could reach a valuation of $455 billion by 2023 — would significantly help PYPL stock.

Kronos Bio (KRON)

A biotechnology firm headquartered in San Mateo, California, Kronos Bio (NASDAQ:KRON) recently enjoyed strong momentum, popping up over 6% on the July 13 session. Specializing in the development of therapeutics that target the dysregulated transcription that causes cancer and other serious diseases, Kronos aims to lead the charge for next-generation solutions in oncology.

Now, in the year so far, KRON hasn’t quite lived up to its potential, hemorrhaging 64% of its market value. Since its first public closing price (in October 2020), KRON has plunged 80%. Still, what makes Kronos Bio exciting is that over the trailing month, shares have jumped almost 50%. Therefore, it’s one of the Nasdaq stocks to buy on the dip because this party might just be getting started.

Currently, the company is working on inhibitors that may hold the key to presenting effective treatments for acute myeloid leukemia (or AML). To be fair, the biotech space is extremely volatile, though this volatility also opens the door for extremely robust returns.

GreenPower Motor Company (GP)

An electric vehicle company based in Canada, GreenPower Motor Company (NASDAQ:GP) specializes in electric-powered buses. It features quite a diverse portfolio within this segment, manufacturing high-floor and low-floor vehicles, including transit buses, school buses, shuttles and double deckers.

Of course, the underlying business carries significant relevance. For years, the worsening environmental conditions caused by climate change has forced even the most reluctant policymakers to consider enhancing infrastructures to promote a cleaner, greener future. Of course, EVs represent a one piece of the broader solution. Bring in the Russian invasion of Ukraine and the subsequent push for hydrocarbon alternatives and electric vehicles become even more pertinent.

However, there’s a difference between a good narrative and effective execution. So far, GreenPower Motor finds itself down over 61% year-to-date, making it one of the worst performers this year. Nevertheless, GP could be one of the Nasdaq stocks to buy on the dip as outside factors are incredibly supportive of wider EV integration initiatives.

Cricut (CRCT)

Billed as the ultimate cutting machine, Cricut (NASDAQ:CRCT) manufactures what are known as cutting plotters. Essentially, they’re like home printers for craftspeople, enabling everyday users to implement unique design elements in various materials, ranging from paper, felt vinyl and fabric. In addition, users can also step up to leather, matboard and wood.

Such a product caters to home crafts businesses. One of the fundamental problems, though, is the current economic environment. With recession fears rising and inflation out of control, households are being more careful about discretionary spending. Also, e-commerce as a percentage of total retail sales has dipped since 2020, which doesn’t say great things about home businesses.

However, the irony is that challenges such as inflation are inspiring people to go out and find side gigs. The speculation with Cricut is that many will pivot to creative businesses while they grind away at their typical office jobs. Although it’s risky, CRCT could be one of the Nasdaq stocks to buy on the dip.

Netflix (NFLX)

Few publicly traded companies embody the “giveth and taketh away” concept of the Covid-19 pandemic quite like Netflix (NASDAQ:NFLX). Early in the global health crisis, NFLX quickly soared as government agencies ordered households to shelter in place. With the same entities also cracking down on non-essential activities, there was little else to do but binge watch programs on Netflix.

However, on a YTD basis, NFLX has tanked about 63% of market value. Recently, the company has been posting results that have disappointed investors, such as subscriber losses. Plus, the pivot to experience-based consumption (as in travel) didn’t really help streaming services, which can be consumed at any time.

Still, recent news might make NFLX one of the Nasdaq stocks to buy on the dip. The company is partnering with Microsoft (NASDAQ:MSFT) to roll out a new ad-supported offering later this year. This could be the catalyst that may start righting the ship.

Lyft (LYFT)

Among the hardest-hit segments during the onset of the Covid-19 pandemic, the ride-sharing industry suffered catastrophic losses. With a mysterious virus raging everywhere, few were comfortable taking public transportation. This apprehension naturally included getting into a stranger’s car and being in close proximity to the driver.

From late 2020 to early 2021, however, circumstances appeared to brighten for Lyft (NASDAQ:LYFT), with the ride-sharing firm benefitting from reduced fears of Covid-19. In addition, demand increased for greater mobility. Unfortunately, economic pressures started to weigh on LYFT. Since the start of this year, shares have plummeted around 70%.

Nevertheless, for speculators, Lyft could be one of the Nasdaq stocks to buy on the dip. Granted, you can expect some lacerations with this trade. But as people start to go out more for vacations in a bid to make up for lost time, LYFT may end up becoming a downwind beneficiary.

Veritone (VERI)

An artificial intelligence technology company based in Irvine, California, Veritone (NASDAQ:VERI) provides AI-empowered software, services and applications to enterprise-level clients. Through its various platforms, Veritone enjoys relevance across multiple industries, facilitating greater efficiencies and superior decision-making protocols.

A real-world example of Veritone’s utility comes in its services for law enforcement agencies. Due to multiple controversies over the past few years regarding police interactions, public policymakers require greater transparency. Veritone’s AI platform helps ensure the rights of citizens are protected, while minimizing administrative downtime for police officers.

Speaking of transparency, it must be said that out of the Nasdaq stocks to buy on the dip, VERI will require significant courage. For instance, shares are down 69% YTD, making it one of the worst performers on the exchange. However, the need for accountability from law enforcement and other public entities will likely only increase. Veritone provides a mechanism to get the necessary work done as cleanly and effectively as possible.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.