Stocks aren't always moving higher, and that's actually a good thing. Volatility is the birthplace of opportunity, and if you're looking at the right stocks you can pick up a great stock at a great price.
Coupang (CPNG 3.40%), Tesla (TSLA -0.52%), and Bumble (BMBL 3.25%) are three stocks I wouldn't hesitate to buy in the next market crash. I already own a piece of all three, but let's see why these are three stocks that should bounce back nicely from the next crash.
Recent IPOs are a great place to look for promising growth stocks that will get clobbered in the next market crash. Investors are likely to dump freshly public companies that are still unproven in the eyes of investors at a time when stability reigns supreme. Coupang is a name you want to keep high on the list of recent debutantes to check out in the next pullback.
If you're not familiar with Coupang it's because you haven't taken the time to get to know the Amazon of South Korea. Coupang has 16 million active shoppers on its platform, a pretty big deal since that represents roughly a third of the country's adult population. Coupang hit the market at $35 three months ago, quickly topping out at $69 before giving most of that back now.
Growth is on a tear. Revenue soared 55% in 2019, picking up the pace with a 91% burst last year. Net revenue climbed 74% (63% on a constant currency basis) in the first quarter of this year. The reason why Coupang is so attractive is because it's going to be hard for anyone -- yes, even Amazon -- to compete. Coupang has already ripped pages out of the leading online e-tailer's playbook. It has a network of 100 fulfillment centers to the point where it's just seven miles or less from 70% of everyone in South Korea. If you want groceries delivered, just place your order on Coupang before midnight. It'll be waiting by your front door before you wake up the next morning. Coupang even excels at restaurant takeout delivery, a platform that even Amazon couldn't make work.
Every automaker that matters is making electric vehicles a priority. The always polarizing Tesla is already there. Tesla sold roughly half a million cars last year, no small feat in a pandemic when our vehicles were parked in the garage and new car sales languished. It's going to naturally sell even more in 2021.
Tesla has some big first-mover advantages. It has 25,000 Tesla-dedicated Supercharger stations already installed, a moat that finds everyone else leaning on third-party charging stations that will never be proprietary or as reliable. Tesla's leading edge in self-driving technology will also make it hard to catch.
Other car makers will copy Tesla's high-margin business model of over-the-air software for premium upgrades. Those that succeed will be taking market share from their legacy gas guzzlers, but not Tesla's promising growth trajectory. A lot of people are betting against Tesla these days, but that also happens to be a bullish case for Tesla the next time the stock takes a hit.
Like Coupang, Bumble is another 2021 IPO that has come down after its initial pop. It's not a broken IPO. Like Coupang, it's trading just above its debut price -- which in this case was $43 a share for its February IPO.
There's a lot to like when it comes to Bumble. It operates the second- and fourth-highest grossing online dating apps in the world. The namesake app that makes up 66% of the revenue mix is growing faster than Tinder, the only online dating application that rakes in more money than Bumble.
Revenue growth slowed to 19% last year, but give it a break. We were in a pandemic, and dating was pretty dangerous through most of 2020. The pick-up business is picking up now, with Bumble's revenue up 43% in this year's first quarter.
The best is yet to come for Coupang, Tesla Motors, and Bumble. These are three growth stocks that I think you could consider buying the next time the market crashes.