Market Correction: Time to Invest in Hypergrowth Stocks

Market Correction: Many stocks face a significant drawdown, creating an opportunity for investors. The Nasdaq-100 Index is down, but analysts recommend buying hypergrowth stocks like Remitly and Coupang while prices are low.

Date: 16-03-2025

AI Rating: 7

In the current market correction, many stocks have experienced a sharp decline in value, with the Nasdaq-100 Index reflecting a significant downturn. This situation presents potential investment opportunities for those looking to capitalize on cheaper valuations of hypergrowth stocks that usually carry premium prices during bull markets.

Remitly Global (NASDAQ: RELY) has displayed impressive growth metrics, with company revenue increasing by 33% year-over-year to $352 million. The active customer base has also expanded significantly, with a 32% growth rate, leading to a remarkable 39% increase in send volume. Although Remitly is not currently profitable, its strong gross margin of 66% indicates solid profitability potential in the future. Analysts predict that if Remitly maintains this growth trajectory, it could achieve a net margin of 20%, leading to $500 million in net income by 2027.

Coupang (NYSE: CPNG) has also shown strong financial performance, with a revenue of $30 billion in 2024, reflecting a 29% increase. The company is expanding beyond its core e-commerce offering, which indicates future revenue growth. Analysts project that Coupang could potentially generate $5 billion in annual net income, assuming a modest 10% profit margin.

While neither company has positive net income yet, strong revenue growth and favorable unit economics suggest future profitability. Investors should consider this data when deciding on their investment strategies during the current bear market.

Stocks: RELY CPNG