2 Growth Stocks Down More Than 70% That Could Have Great Rebounds in 2025

Despite the recent market downturn, some growth stocks have experienced significant declines, presenting potential opportunities for investors looking for a rebound in the coming years. Two such stocks are Alphabet (GOOGL) and MercadoLibre (MELI), both of which have the potential to make a strong comeback in 2025.

Alphabet, the parent company of Google, has seen its stock price fall by over 70% from its peak in 2021. However, the company's core business, search advertising, remains strong, with revenue growing by 12% year-over-year in the fourth quarter of 2022. Additionally, Alphabet's other businesses, such as YouTube and Google Cloud, are also performing well, with revenue growth of 14% and 34% year-over-year, respectively. The company's strong fundamentals and diversified business model suggest a potential rebound in the broader market and other tech stocks.

MercadoLibre, the leading e-commerce platform in Latin America, has also experienced a significant decline in its stock price, falling by over 70% from its peak in 2021. Despite the downturn, MercadoLibre's revenue grew by 113% year-over-year in the fourth quarter of 2022, driven by strong growth in its e-commerce and fintech businesses. The company's strong revenue growth and expanding market opportunity in Latin America suggest a potential rebound in its stock price.

Several catalysts could drive these stocks' recovery in the coming years. For Alphabet, the integration of artificial intelligence (AI) into its products and services could lead to improved search results, increased ad revenue, and new business opportunities. Additionally, the growth of Google Cloud and YouTube's subscriber base and ad revenue could accelerate, further driving the company's recovery.

MercadoLibre, on the other hand, has several catalysts for a potential rebound, including the growth of its e-commerce platform, fintech services, and advertising business. As Latin America's economy recovers and consumer spending increases, MercadoLibre's revenue and earnings could rebound, driven by increased user engagement and new advertising formats.



While these catalysts are promising, it's essential to consider the risks and uncertainties associated with each company. Alphabet and MercadoLibre face intense competition, regulatory challenges, and economic headwinds that could impact their recovery. However, with strong underlying businesses and multiple growth opportunities, these stocks could have great rebounds in 2025.

In conclusion, Alphabet and MercadoLibre have experienced significant declines in their stock prices but have strong fundamentals and growth prospects that suggest a potential turnaround. Investors should consider these companies as potential opportunities for long-term growth, as they could have great rebounds in 2025.