Growth stocks have taken a beating over the past 18 months or so. In many cases, valuations were just too high. The days of investors paying many dozens of times sales for profitless software companies appear to be over, at least for now.

While some beaten-down growth stocks still look too expensive, others now look like solid deals. Shares of PubMatic (NASDAQ: PUBM) and DigitalOcean (NYSE: DOCN) have been hammered, down at least 75% each. Both companies have great long-term growth prospects, and the valuations are now attractive enough for investors to jump on board.

Sell-side digital advertising platform PubMatic is holding up reasonably well in a tough market for digital ads. The company managed to grow revenue by about 2% year over year in the first quarter, driven in part by faster-growing segments like omnichannel video. The company's second-quarter guidance wasn't too bad, either. PubMatic expects to produce revenue between $58 million and $61 million, down slightly from $63 million in the prior-year period.

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Source Fool.com