2 No-Brainer Hypergrowth Stocks to Buy During This Nasdaq Market Correction

The Nasdaq Composite Index officially entered correction territory on March 6, 2025, falling 10% from its recent peak. While market downturns create buying opportunities, many investors hesitate, fearing further declines. But history shows that staying calm and sticking to a disciplined investment strategy can yield significant rewards. In this article, we will explore two hypergrowth stocks that stand out as "no-brainer" investments during the current Nasdaq market correction: remitly and coupang.



Why Invest in Hypergrowth Stocks During a Market Correction?

Market corrections are not the enemy—they are opportunities for patient investors. The key is to stay calm, ignore distractions, and invest wisely. Whether stocks rise or fall in the short term, business fundamentals drive long-term gains. If you choose great companies and hold them through market cycles, you are likely to come out ahead.

Remitly: Disrupting the Remittance Market

Remitly is a fintech company that specializes in international money transfers. The company has disrupted the remittance market with its easy-to-use mobile application and lower fees compared to traditional players like western union. Remitly's revenue grew by 33% year over year to $352 million, driven by a 32% increase in active customers to 7.8 million and a 39% growth in send volume to $15.4 billion. This rapid growth and market share expansion make it a standout investment.

Remitly has strong unit economics with a gross margin of 66% after subtracting transaction expenses. This indicates that the company is efficiently managing its costs and generating significant revenue from its operations. Remitly has only around 3% market share in remittances and is rapidly growing in new country corridors. Since 2019, its revenue outside the United States and Canada has grown at a 100% year-over-year rate, reaching $297.1 million in 2024 and now making up 23.5% of total revenue. This suggests that there is substantial room for growth and expansion.

With a market cap of $3.9 billion and projected revenue growth to $2.5 billion by 2027, Remitly could achieve a net margin of 20%, generating $500 million in net income. This would give it a price-to-earnings ratio (P/E) below 8, making it a cheap buy-and-hold investment over the next decade.

Coupang: Leading E-commerce in South Korea

Coupang is a leading e-commerce platform in South Korea, similar to Amazon in North America. The company has built out its own warehouse and delivery network, offering rapid shipping speeds and low-cost shipping on millions of items, which has led to significant market share gains. In 2024, Coupang generated $30 billion in revenue, up 29% on a foreign currency-neutral basis. This impressive growth rate indicates that the company is well-positioned to continue expanding its market share.

Coupang is not resting on its laurels and is diversifying its offerings. New initiatives include food delivery with Coupang Eats, international expansion into Taiwan, video streaming with Coupang Play, and a push into luxury/fashion shopping with an acquisition of Farfetch. These diversifications provide additional growth opportunities and reduce reliance on a single revenue stream.

With a market cap below $40 billion and projected revenue growth to $50 billion within the next few years, Coupang could generate $5 billion in annual net income with a low profit margin of 10%. This makes it an attractive investment opportunity, especially during a market correction when valuations are more favorable.

Historical Data Supports This Investment Strategy

The current market correction presents a unique buying opportunity for hypergrowth stocks due to the significant drop in stock prices, allowing investors to purchase high-quality stocks at a discount. Historical data supports this investment strategy. According to the provided information, the Nasdaq Composite has experienced 11 corrections in the last 15 years, with three of those events developing into bear markets. However, the index has typically rebounded quickly after reaching the market correction threshold. During the last 15 years, the Nasdaq has returned an average of 21.9% and a median of 24.8% during the 12-month period following its first close in correction territory. This historical performance suggests that investing in the Nasdaq during a correction could yield significant returns in the long run.

Moreover, the current market correction is driven by concerns around global economic growth and the threat of a global trade war, as well as renewed worries over the artificial-intelligence trade. These factors have led to a selloff in tech-heavy stocks, creating an opportunity for investors to buy high-quality stocks at a discount. For example, the Nasdaq Composite finished with a loss of 483.48 points, or 2.6%, at 18,069.26 on March 6, 2025, a pullback of 10.4% from its record close of 20,173.89 set on Dec. 16. This drop presents a unique buying opportunity for hypergrowth stocks, as investors can purchase these stocks at a discount and potentially benefit from their long-term growth prospects.

Key Financial Metrics and Growth Projections

Based on the provided information, here are the key financial metrics and growth projections that make Remitly and Coupang attractive investments, along with comparisons to industry benchmarks and competitors:

Remitly (RELY)

- Financial Metrics:
- Revenue grew 33% year over year to $352 million last quarter.
- Active customers grew 32% to 7.8 million.
- Send volume grew 39% to $15.4 billion.
- Gross margin of 66% last quarter.
- Growth Projections:
- Remitly only has around 3% market share in remittances and is rapidly growing in new country corridors.
- Revenue outside of the United States and Canada has grown at a 100% year-over-year rate since 2019.
- Comparison to Industry Benchmarks and Competitors:
- Remitly's market cap of $3.9 billion and potential for strong bottom-line margins make it a cheap buy-and-hold investment.
- Competitors like Western Union may not have the same level of growth or market share in remittances.

Coupang (CPNG)

- Financial Metrics:
- Generated $30 billion in revenue in 2024, up 29% on a foreign currency-neutral basis.
- Growth Projections:
- Coupang has plenty of growth left within its core South Korean e-commerce offering.
- New initiatives include food delivery, international expansion, video streaming, and a push into luxury/fashion shopping.
- Comparison to Industry Benchmarks and Competitors:
- Coupang's market cap below $40 billion and potential for strong growth make it a cheap stock.
- Competitors like Naver and Kakao may not have the same level of growth or market share in South Korean e-commerce.

Conclusion

The current market correction presents a unique buying opportunity for hypergrowth stocks like Remitly and Coupang. These companies have strong financial metrics, impressive growth projections, and attractive valuations compared to industry benchmarks and competitors. By investing in these stocks during a market correction, investors can purchase high-quality stocks at a discount and potentially benefit from their long-term growth prospects. As always, it's important to do your own research and consult with a financial advisor before making any investment decisions. Happy investing!