2 growth stocks I would buy right now without hesitation | The Motley Fool

disastrous results of Amazon (AMZN -1.32%) and Meta (META -0.61%) many fear that another “technological shipwreck” is upon us. But even techies Nasdaq Compound The index, which is down 30% this year, is still a far cry from the dramatic decline it suffered in 2000 when it lost 56% of its value, or the massive 78% plunge it suffered in 2008.

And those two crashes ultimately resulted in multi-year bull markets. That’s what slowdowns are all about: while they’re never fun, they represent great opportunities to buy growth stocks at values ​​not seen in some time.

If you have money that you have been saving and don’t need to pay bills or for emergencies, then now is one of those rare opportunities to buy stocks that you have missed before. The following two growth stocks are excellent companies that you can buy now without hesitation and that will have your portfolio thanking you for years to come.

Apple

It seems like every run up Appleit is (AAPL -2.94%) earnings are filled with cries from Wall Street “this is the end” for the tech giant. While the consumer electronics company’s results were far from perfect, it quickly became clear that Apple was the bulwark protecting the entire market from a meltdown.

iPhone revenue of $14.63 billion was 10% higher than last year (although it narrowly exceeded analysts’ expectations) and became the biggest mobile device after overtaking Android smartphones in June with an active installed base above 50%. iPad sales were also weaker than expected, with revenue down 13%, but the rest of its business was quite strong. Mac revenues rose 25% to $11.5 billion, and portable devices jumped 10% from a year ago.

While products are still important to Apple, everyone realizes that services is the future of tech stock, and despite significant currency headwinds from the very strong dollar overseas, revenue rose 5% to $19.2 billion (again, slightly below expectations). Still, Apple said paid subscriptions across all of its platforms jumped 155 million in the quarter to 900 million, double what they were just three years ago.

Warren Buffett has been a big buyer of Apple shares, and he’s about 41% of Berkshire Hathawayit is (BRK.A -1.48%) (BRK.B -1.23%) wallet. Still, with Apple trading at around $156 per share, you would buy the stock now at prices similar to or higher than Omaha’s Oracle, making it a good long-term growth stock to own.

Shopify

e-commerce platform provider Shopify (STORE 4.60%) went from pandemic hero to post-pandemic has-been. Its stock has lost three-quarters of its value this year and is down 80% from its all-time high.

But this is a case where the market is throwing the baby out with the bathwater.

Shopify certainly saw a spike in new business during the COVID outbreak as people locked in their homes launched new websites and businesses at breakneck pace and turned to the e-commerce platform provider for help. ‘assistance.

There was naturally going to be a mean reversion after the economy reopened, but the response was as if Shopify went bankrupt. Although it has been reporting losses lately, Chairman Harley Finkelstein said Shopify is on its way back to profitability.

“If you look at the 7 years since IPO, 5 of those years we’ve been profitable. We expect to be profitable again.”

In the second quarter, it posted a net loss of $1.2 billion, but Shopify narrowed that loss to a miniscule $125 million in the third, as revenue rose 22% from a year ago. It continues to show strong growth in gross merchandise volume and gross payment volume, albeit at a slower pace than before the pandemic – but no business can continue to grow at such high percentages in perpetuity.

Shopify, however, is rolling out new products for its users, such as a new sales tax product and mobile point-of-sale hardware, while adding greater functionality to existing features such as its fulfillment network. In the process, the business becomes more vertically integrated, allowing it to establish itself as an essential part of a company’s operations.

Shopify has $4.9 billion in cash, cash equivalents and short-term investments to weather any storm, and as its business grows again at a more normal pace, the market will recognize the opportunity it present. Buying now offers an investor the opportunity to enter before this inflection point arrives.

Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a board member of The Motley Fool. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. Rich Duprey has no position in the stocks mentioned. The Motley Fool holds and recommends Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc. and Shopify. The Motley Fool recommends the following options: $1,140 long calls in January 2023 on Shopify, $200 long calls in January 2023 on Berkshire Hathaway (B shares), $120 long calls in March 2023 on Apple, short calls of $1,160 in January 2023 on Shopify, short calls of $200 in January 2023 on Berkshire Hathaway (B shares), short calls of $265 in January 2023 on Berkshire Hathaway (B shares) and short calls of $130 in March 2023 on Apple. The Motley Fool has a disclosure policy.