2 Growth Stocks That Could Go Parabolic

Growth stocks are not for the faint of heart. In bear markets -- like the one investors are experiencing in April 2025 for the Nasdaq Composite Index -- growth stocks are going to tumble amid a lot of volatility. As of this writing, many of your favorite growth stocks are down 20%, 30%, or more in just a short few months.

Buying into weakness like this can feel scary. What if you don't perfectly time the bottom? That isn't the right question to ask. When everyone panics and their time horizons shrink to the next week, that is the time to extend your time horizon and think about buying stocks to hold for the next 10 years.

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Many growth stocks that are down big look cheap at the moment and could provide fantastic returns over the next five to 10 years. Here are two growth stocks I think can go parabolic and deliver fantastic gains for your portfolio.

1. Coupang: A technology player outside the United States

Worried about tariffs impacting consumer spending in the United States? Then you might like Coupang (NYSE: CPNG), a South Korean online marketplace with similarities to Amazon. It does not sell into the United States and -- unless South Korea imposes tariffs on China and other Asian nations -- should see minimal disruptions from these tariff policies that are upending U.S. markets.

Taking away the tariff noise, Coupang is a phenomenal business with a fantastic track record of growth. Despite foreign currency headwinds when calculating financials in U.S. dollars, Coupang's revenue boomed 24% year over year to $30.3 billion in 2024. With the U.S. dollar starting to depreciate versus foreign currencies, this headwind may turn into a tailwind in 2025.

Shoppers love the Coupang marketplace because of its wide selection and ultra-fast delivery times. It also offers video streaming, grocery delivery, and even installation of appliances and items such as tires for your car. Not even Amazon offers this level of service.

With only a small sliver of the overall South Korean retail market, Coupang has plenty of room to grow in the years to come. And it is beginning to generate free cash flow, at $1 billion in 2024. Within a couple of years, I expect Coupang's revenue to reach $50 billion; $5 billion in earnings, or just a 10% profit margin, is achievable on this revenue base, which is what management is guiding for.

Today, Coupang has a market cap of under $40 billion. This means it trades at a forward price-to-earnings ratio (P/E) below 8, a dirt cheap figure for a fast-growing company like Coupang. At these cheap prices, I think Coupang stock is ready to go parabolic over the next decade.

GOOG PE Ratio data by YCharts

2. Alphabet: AI potential is underrated

The second stock that could potentially go parabolic is right in the whipsaw of the Trump tariff tantrum. It is technology giant Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), parent company of Google. The stock has been hit in recent months over concerns about artificial intelligence (AI) competition, and this broad market sell-off is now adding to the pain. As of this writing, the stock's trailing P/E ratio is 18, which is well below the S&P 500 index's average of 27.

Alphabet is criticized for not dominating the AI market, but I don't think this is the right way to frame the situation. It is the leading researcher and developer of new technology tools and has an advantaged position with its homegrown AI-focused computer chips optimizing its data centers.

Investors should see AI as an opportunity for Google Search, YouTube, and Google Cloud to grow, not a competitive threat leading to disruption. Sure, Google will not be a monopoly in search anymore, but that doesn't mean the company's revenue is going to zero when it plays in a market that may be worth trillions of dollars in a decade.

Investors are seeing this in Alphabet's financials. Google Cloud revenue grew 30% year over year in the fourth quarter of 2024. YouTube advertising grew 14%. Google Search -- which is apparently getting disrupted by AI -- grew 12.5% to $54 billion. Yes, $54 billion in revenue in just one quarter.

Alphabet also consistently repurchases its stock and just started to pay a dividend to shareholders. Add it all together, and Alphabet looks like a fantastic growth stock to buy and hold for the long haul. Zoom out and focus on the next decade to see that this is a high-quality business you can buy an ownership stake in at a relatively cheap price.

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*Stock Advisor returns as of April 5, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Alphabet and Coupang. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.