Investors finally got the stock market bounce they had hoped for, but they had to endure gut-wrenching volatility in order to get it. At times earlier in the day, the Dow Jones Industrial Average (DJINDICES: ^DJI) had been down more than 1,100 points. But it managed to regain all of its losses to finish higher on the day. The S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) had similar experiences that rewarded patient and disciplined investors.

Data source: Yahoo! Finance.

Major market indexes were down as much as 4% during the day, but that was nothing compared to some of the even bigger swings among individual stocks. Below, we'll look at three in particular that turned extreme losses into sharp gains.

Image source: Getty Images.

Atlassian shrugged

Shares of Atlassian (NASDAQ: TEAM) finished the day higher by 6%. The workplace collaboration specialist's stock had been down nearly 4% at its worst levels on Monday.

Atlassian has been somewhat remarkable in its ability to keep supporting its stock price throughout much of 2021. Even as other stocks in the software-as-a-service space fell more sharply, Atlassian held up well and continued to post gains.

However, by November, Atlassian started to give in to the same gravity that pulled other tech stocks lower. At its worst levels Monday, Atlassian had given up more than 40% of its stock price.

Fundamentally, companies aren't going to stop needing the workflow tracking and service management tools that Atlassian's platform provides. That made it a good candidate for a bounce on Monday.

CrowdStrike, Cloudflare claw back ground

Shares of CrowdStrike Holdings (NASDAQ: CRWD) didn't manage to achieve a big gain, rising just 1.5% on the day. But with the stock having been down as much as 9% at midday, shareholders are still breathing a sigh of relief.

There's no doubt that cybersecurity services are necessary in today's environment, and CrowdStrike's product suite is one of the best. Increasingly, though, shareholders have worried about rising competition, both from established industry players and from new disruptors like SentinelOne (NYSE: S).

Meanwhile, Cloudflare (NYSE: NET) saw big swings in both directions. The stock was down almost 10% near midday, but it closed higher by 5%. Cloudflare's product suite also includes cybersecurity protection for clients as part of a broader package of internet performance-enhancing services.

Stock analysts have been optimistic about the prospects for Cloudflare, but they've still tempered their views on stock prices in light of the recent market volatility. The best example came from Credit Suisse, which upgraded Cloudflare's stock but slashed its price target by more than 30% to $140 per share.

Even after the gains, CrowdStrike is still 45% below its highs, while Cloudflare is down almost 60%. There's no guarantee the stocks will rise back to their former heights, especially in the near term. But today's gains show that investors haven't given up entirely on the growth prospects in cybersecurity and the ability of CrowdStrike and Cloudflare to participate in them.

Don't loosen the seatbelts just yet

Many investors are feeling more comfortable after the market showed its ability to produce a short-term rebound. However, it's too early to sound the all-clear just yet. Don't be surprised if more volatility comes in the days ahead, but stay focused on the fundamental strengths of the businesses in which you have invested.

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Dan Caplinger owns Cloudflare, Inc. The Motley Fool owns and recommends Atlassian, Cloudflare, Inc., and CrowdStrike Holdings, Inc. The Motley Fool has a disclosure policy.