By: Sayan
Published on: Apr 28, 2025
The 2025 stock market sell-off, driven by economic uncertainty and U.S. trade policies, has hit growth stocks hard. Rising interest rates and global trade tensions have created headwinds, but savvy investors know that market downturns present opportunities to buy strong businesses at discounted prices. Long-term investors can build wealth by identifying companies with solid fundamentals and growth potential. This article highlights three no-brainer growth stocks—Coupang, The Trade Desk, and Datadog—that stand out as compelling buys during the current market volatility. Each offers unique strengths, making them poised for significant returns as the market recovers.
Coupang (NYSE: CPNG) has revolutionized e-commerce in South Korea, mirroring Amazon’s playbook with its ultra-fast delivery network. Operating over 100 fulfillment centers, Coupang delivers 99% of orders within 24 hours, a feat that fuels its Wow membership program. This subscription, akin to Amazon Prime, includes free shipping, food delivery similar to Uber Eats, and a video streaming service, driving customer loyalty and high-margin revenue from third-party merchants.
Coupang’s growth drivers are robust. Its 2022 expansion into Taiwan shows strong traction, with the Wow membership recently launched there, expected to reach breakeven faster than in South Korea. The acquisition of Farfetch in 2024 has bolstered its presence in luxury fashion, while potential ventures into digital advertising could mirror Amazon’s high-margin success. Analysts project 15% revenue growth and 150% adjusted EBITDA growth in 2025, with a long-term EBITDA margin goal of over 10%, up from 4.5% in 2024.
Trading at an enterprise value to forward EBITDA ratio of less than 23, Coupang is undervalued compared to its historical average. With improving supply chain efficiency and expansion in Taiwan and Coupang Eats, the stock offers substantial earnings growth potential for patient investors.
The Trade Desk (NASDAQ: TTD) is a leader in programmatic advertising, offering a platform that optimizes campaigns across multiple channels, including streaming video, podcasts, and websites. Unlike single-channel platforms like Facebook or Google, The Trade Desk’s machine-learning algorithms leverage advertiser data, third-party audience insights, and historical performance to maximize ad efficiency, giving it a competitive edge.
Despite a February 2025 earnings miss that triggered a sell-off, exacerbated by tariff-related concerns, the shortfall was due to execution issues, not competitive pressures. Management plans to increase operating expenses to capture market share in the growing digital advertising sector. As a software business with an 80% gross margin, The Trade Desk has significant room for profit expansion as it scales.
The stock trades at an enterprise value to expected sales multiple of 8.6, a premium but justified by its market leadership and growth prospects. With digital advertising expanding rapidly, The Trade Desk is well-positioned to deliver long-term value for investors willing to weather short-term volatility.
Datadog (NASDAQ: DDOG) addresses the growing need for data observability as enterprises adopt cloud computing and AI-driven services. Its platform unifies disparate data silos into a single dashboard, helping businesses pinpoint IT issues efficiently. With the data observability market expanding, Datadog’s land-and-expand strategy has driven a net revenue retention rate in the high 110s, with 50% of customers using four or more products, up from 42% two years ago.
Datadog’s expansion into cloud security, software delivery, and customer data analysis strengthens its value proposition. High switching costs, due to the complexity of reintegrating data with new providers, create a strong moat. The introduction of its Bits AI chatbot further enhances usability for non-technical users, cementing its enterprise foothold.
Trading at an enterprise value of 10 times 2025 revenue expectations, Datadog isn’t cheap, but analysts forecast 20% annual sales growth over the next few years. Its software model’s high operating leverage suggests even stronger earnings growth, making it a compelling buy during the sell-off.
The current market downturn, fueled by trade policies and rising rates, has created attractive entry points for these growth stocks. Coupang, The Trade Desk, and Datadog offer strong fundamentals, competitive advantages, and significant growth potential. By investing in these companies during the sell-off, long-term investors can position themselves for substantial returns as the market stabilizes.
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