2 Growth Stocks That Could Go Parabolic

Core Viewpoint - Growth stocks are experiencing significant volatility in the current bear market, with many down 20% to 30% in a short period, presenting potential buying opportunities for long-term investors [1][2] Group 1: Coupang - Coupang is a South Korean online marketplace similar to Amazon, insulated from U.S. tariff impacts as it does not sell into the U.S. market [4] - The company reported a 24% year-over-year revenue growth to $30.3 billion in 2024, with potential for further growth as the U.S. dollar depreciates against foreign currencies [5] - Coupang offers a wide range of services, including ultra-fast delivery, video streaming, and grocery delivery, which enhances its competitive edge [6] - With a small share of the South Korean retail market, Coupang has significant growth potential, projecting revenues to reach$50 billion and earnings of $5 billion in the coming years [7] - The current market cap is under$40 billion, with a forward P/E ratio below 8, indicating it is undervalued for a fast-growing company [8] Group 2: Alphabet - Alphabet, the parent company of Google, is facing challenges due to concerns over AI competition, with a trailing P/E ratio of 18, below the S&P 500 average of 27 [9] - Despite criticisms, Alphabet is a leading developer of AI technology, with advantages from its proprietary AI-focused computer chips [10] - The company views AI as an opportunity for growth in Google Search, YouTube, and Google Cloud, rather than a competitive threat [11] - Alphabet's financials reflect growth, with Google Cloud revenue increasing by 30%, YouTube advertising by 14%, and Google Search revenue reaching $54 billion in Q4 2024 [12] - The company is also repurchasing stock and has initiated dividend payments, making it an attractive long-term investment [13]