Got $3,000? 2 Hypergrowth Stocks Down Over 25% to Buy and Hold for the Long Term
5min read Market volatility often masks opportunities in sectors experiencing structural growth. Today, two hypergrowth companies—Rocket Lab USA (NASDAQ: RKLB) and Coupang (NYSE: CPNG)—have seen their stock prices decline over 25% from 52-week highs, yet they remain positioned to capitalize on transformative trends. With $3,000 to invest, these stocks could offer asymmetric upside for patient, long-term investors.
1. Rocket Lab USA (RKLB): The Space Economy’s Next Frontier
Rocket Lab’s stock has dipped 28-29% from its all-time highs, creating a rare entry point for a company at the forefront of the $1.8 trillion space economy.
Why It’s a Buy
- Explosive Revenue Growth: Since its 2021 IPO, Rocket Lab’s revenue has surged 681% to $436 million, driven by rocket launches and space systems sales.
- Next-Gen Technology: The Neutron rocket, set for its first launch by late 2025, will expand Rocket Lab’s payload capacity, enabling it to compete directly with SpaceX and secure high-margin government contracts.
- Diversified Revenue Streams: Its space systems division now sells satellites, solar panels, and communication systems to third parties, reducing reliance on launch revenue alone.
- Valuation Advantage: At a $10 billion market cap, Rocket Lab trades at just 23x its 2024 revenue. If it reaches $10 billion in annual revenue—a plausible target as it scales launch capacity—it could deliver a 10x return.
Data to Watch
A successful Neutron launch in late 2025 could catalyze a rebound, while delays or cost overruns could prolong the downturn.
2. Coupang (CPNG): E-Commerce Dominance in Asia’s Largest Market
Coupang’s stock has plummeted 54% from its peak, but its grip on South Korea’s e-commerce sector remains unshaken.
Why It’s a Buy
- Market Leadership: With 24% YoY revenue growth to $30 billion in 2024, Coupang dominates South Korea’s $500 billion retail market through its “Rocket Wow” subscription service and ultra-fast delivery.
- Expansion and Innovation:
- Its Taiwan market entry is succeeding, with plans to target Japan and Southeast Asia.
- New ventures like Blinkit (grocery delivery in 15 minutes) and fintech services added $1.1 billion in quarterly revenue in early 2025.
- Undervalued Metrics: At a 1.4x P/S ratio, Coupang is priced for failure despite its growth trajectory. A $50 billion revenue target (with 10% margins) would imply $5 billion in earnings, valuing the company at less than 10x earnings—a bargain for a high-growth firm.
Data to Watch
International expansion success and margin improvements will be critical.
Key Risks and Considerations
Both stocks carry execution risks:
- Rocket Lab’s Neutron rocket must prove its reliability and cost efficiency.
- Coupang’s international expansion faces competition and regulatory hurdles.
However, the structural tailwinds—space industrialization and Asia’s e-commerce boom—are undeniable.
Conclusion: A $3,000 Allocation for the Next Decade
Investors should split the $3,000 evenly: $1,500 in RKLB and $1,500 in CPNG.
- Rocket Lab benefits from a $1.8 trillion market with no direct competitors in rapid, small-satellite launches. Its valuation leaves room for error, and a successful Neutron program could revalue it to $20 billion+.
- Coupang operates in a $500 billion market with room to triple its revenue. Its current P/S ratio is a fraction of peers like Amazon, despite superior execution in its core market.
Both companies are undervalued relative to their growth potential, and their declines have created a rare buying opportunity. For investors willing to hold through short-term volatility, these stocks could deliver multi-bagger returns by 2030.
The space race and e-commerce dominance aren’t fleeting trends—they’re the future. Patient investors should seize this moment.
