The Market's Tariff Tumble: 2 Stocks to Buy During This Nasdaq Correction

2 months ago 13

Brett Schafer, The Motley Fool

Mon, Apr 7, 2025, 9:19 AM 5 min read

The banal marketplace is going done a large correction. As of marketplace adjacent connected Friday, April 4, the Nasdaq 100 Index is really down 21.6% from all-time highs, which means it has officially entered a carnivore market. The S&P 500 scale has not passed the 20% threshold for a carnivore market, but it is inactive disconnected 17.5% from its highs.

Plenty of stocks are down adjacent much connected this tariff-induced tumble. While galore investors unreserved to the exits, astute contrarian investors cognize present is the clip to bargain immoderate stakes successful high-quality businesses that are present trading connected the cheap. Here are 2 stocks to bargain during this Nasdaq marketplace correction.

Up to the sheet archetypal is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). The exertion elephantine is down 29% from all-time highs and is presently trading astatine a little terms than successful November 2021 -- a brutal drawdown for shareholders successful the aftermath of this tariff tantrum, further exacerbated by the artificial quality (AI) contention coming for the Google Search throne.

As a institution that makes wealth connected advertisements for user goods, Alphabet whitethorn spot slowing maturation if the fears astir these tariffs materialize into a recession. We should person a longer clip skyline than this.

What volition substance implicit the agelong tally is if Google Search, YouTube, Android, and Google Cloud support ascendant positions successful their respective niches. With Alphabet's technological prowess, innovative AI tools, and a hardware vantage with its tensor processing machine chips, I deliberation the institution is successful rod presumption to triumph successful each the fields it is playing in.

AI should beryllium thought of arsenic an accidental for Alphabet, not a threat. Today, the banal trades astatine a inexpensive price-to-earnings ratio (P/E) of 18. Revenue grew 15% twelvemonth implicit twelvemonth successful 2024 successful changeless currency figures. Over the agelong haul, owed to the accelerated maturation astatine Google Cloud and integer advertizing market-share gains, I judge Alphabet tin support increasing its gross astatine a double-digit rate. Earnings should turn adjacent quicker done borderline expansion. Sprinkle successful immoderate dividends and stock buybacks, and Alphabet looks similar a banal poised to present monster returns to shareholders implicit the adjacent decade.

GOOG information by YCharts

Airbnb (NASDAQ: ABNB) is simply a simpler communicative than Alphabet. It has 1 concern -- an online question marketplace -- centered connected its disruptive home-sharing model. This disruption is inactive driving maturation for the concern contiguous arsenic the institution works to cleanable its marketplace for some hosts and travelers.

Last year, $81.8 cardinal was spent connected the Airbnb marketplace, increasing 12% twelvemonth implicit year. Revenue grew successful enactment with gross booking walk owed to Airbnb's instrumentality complaint model, meaning it earns gross arsenic a chopped of each dollar spent connected Airbnb. The institution is besides highly profitable today, posting nett income of $2.6 cardinal past twelvemonth for a borderline of 24%. This is each portion Airbnb is reinvesting heavy successful caller geographies and caller merchandise lines to adhd to the Airbnb marketplace.