Some S&P/ASX 200 Index (ASX: XJO) shares have fallen heavily over the past year, and I think that has created a more attractive risk/reward setup for patient investors.
The two ASX 200 shares in this article are both down around 40%. That does not make them risk-free, but I think their long-term growth opportunities remain compelling.
Here's why I think they could be worth a closer look today.
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REA Group Ltd (ASX: REA)
REA Group shares are down around 40% from their 52-week high.
That is a big fall for one of the highest-quality digital businesses on the ASX. But I think the underlying investment case remains attractive.
REA owns realestate.com.au, Australia's dominant property platform. Its strength comes from the network effect between buyers, renters, sellers, agents, developers, advertisers, and lenders.
Property buyers want to search where the most listings are. Agents want to advertise where the most serious buyers are. That creates a powerful loop that can be difficult for competitors to break.
You only need to look at its third-quarter results to see that the platform is still attracting huge audiences. REA reported record Australian audiences in the March quarter, with 12.9 million average monthly visitors and 150 million average monthly visits.
I like REA because it can grow in several ways over time. It can increase the value of property listings through premium products, help agents use more data and insights, deepen its mortgage and financial services opportunity, and improve the consumer experience with better digital tools.
Artificial intelligence could also help REA build better search, richer property insights, smarter agent tools, and more useful experiences for buyers and sellers.
The main risk is valuation. REA shares have rarely been cheap, and the property market can still affect listings and sentiment. But a 40% fall makes the equation more interesting for patient investors.
SiteMinder Ltd (ASX: SDR)
SiteMinder shares have fallen around 40% over the past 12 months.
This is a very different business from REA, but I think the long-term idea is also attractive.
SiteMinder provides hotel commerce technology. Its platform helps hotels manage bookings, distribution channels, room rates, inventory, and revenue opportunities across a fragmented travel ecosystem.
Hotels need to sell rooms across multiple channels at the right price while avoiding mistakes such as overbooking or pricing errors. That becomes more complicated as online travel agents, direct bookings, metasearch, wholesalers, and emerging AI-driven channels all play a role.
SiteMinder sits in the middle of that complexity, and stands to benefit as more channels, more dynamic pricing, and more automation increase the need for reliable software that keeps inventory and pricing synchronised.
That does not make SiteMinder risk-free. The company still needs to keep executing on its strategy and delivering profitable growth.
But after a 40% share price fall, I think the risk-reward balance looks more attractive than it did.
Foolish Takeaway
Investing $1,000 into either of these ASX 200 shares will not suit everyone. REA and SiteMinder are growth-focused businesses, and both can remain volatile if investors become more cautious.
But I think both have strong long-term characteristics. REA has a dominant property platform with multiple ways to increase customer value, while SiteMinder is gaining a growing role in the global hotel technology stack.
A 40% fall does not guarantee a rebound, but it does create a better entry point for investors willing to look past short-term share price pain and focus on what these businesses could become over the next five to 10 years.
