Here are two that have fallen more than 40% within a year. For investors willing to take a longer-term view, I think both are worth considering buying today.

All at sea

Sea Limited‘s (NYSE:SE) stock has crashed 45% since September, and is now trading under $110. This is disappointing because I bought its shares at $128 just before Christmas.

This doesn’t worry me however, because I aim to invest for a minimum of five years. And over this sort of timeframe, I remain bullish on the company’s prospects.

Sea Ltd operates three high-growth business segments: e-commerce, digital entertainment, and fintech. Its Shopee app is the most popular e-commerce marketplace in Southeast Asia, while its Garena platform owns hit battle royale game Free Fire. The fintech unit (Monee) offers credit and other digital financial services.

In the third quarter, the company’s revenue jumped 38% to $6bn, including 60% growth in the fintech business. Net profit soared 145% to $375m.

What’s exciting here is that Monee is growing strongly outside the Shopee platform. And looking ahead, the long-term opportunity to expand credit and insurance products across markets such as Brazil, Indonesia, Vietnam, Thailand, Malaysia, and the Philippines is massive.

According to research by Bain, Google & Temasek, over 70% of Southeast Asia’s 570m adult population is still unbanked (no bank account) or underbanked (limited access to financial services).

E-commerce competition’s a risk though. It’s going head-to-head with TikTok Shop and Alibaba’s Lazada in Asia, and MercadoLibre in Brazil. Also, the firm’s profit margins can fluctuate as it invests to capture the long-term opportunities ahead. Volatility’s a given with this stock.

With e-commerce and digital finance penetration in our markets still low but increasing, strong growth lays the best foundation to maximize our long-term profitability.
CEO Forrest Li.

After the sharp pullback, Sea stock’s now valued cheaply, with a five-year price/earnings-to-growth (PEG) ratio of just 0.4. For context, the ballpark figure for fair value is 1.

A huge discount in the FTSE 100

Turning to the FTSE 100 now is RELX (LSE:REL), the owner of data and research platform LexisNexis. The group’s share price has collapsed 25% year to date, the worst Footsie faller in 2026, and a shocking 45% since May.

The fear here is that law firms will start using AI tools for legal tasks instead of paying for a LexisNexis subscription. However, analysts at UBS reckon this risk is overblown. They estimate that the vast majority of RELX’s revenue isn’t at risk of AI disruption and if anything, most of its business is set to benefit from the technology.

I agree. After all, AI models are only as good as the data they are trained on or can access. RELX owns vast, proprietary datasets in the legal (LexisNexis), scientific (Elsevier), and other sectors. 

Meanwhile, RELX has launched its AI-powered research tools, which are experiencing strong adoption among customers. So the sell-off appears to be completely overdone.

The stock’s currently going for 15.5 times forward earnings, which is a massive discount to the past decade. RELX also now sports a forecast 3.3% dividend yield.

The post 2 battered growth stocks down 45% to consider buying right now appeared first on The Motley Fool UK.

Here are two disruptive growth stocks that stand out to me right now. Both are down considerably from their 52-week highs, and I think they’re worth mulling over for 2026 and beyond.

A sea of growth

First up is Sea Limited (NYSE:SE), which owns Southeast Asia’s largest e-commerce marketplace (Shopee), as well as gaming platform and publisher Garena. It also runs Monee (a fast-growing fintech platform).

These three digital businesses are driving big growth (Q3 revenue was up 38.3% to $6bn). Yet the stock’s fallen 38% since September, largely due to concerns around regional competition for Shopee from the likes of TikTok Shop and Alibaba‘s Lazada.

While these fears are legitimate, the e-commerce market in Southeast Asia is large and growing. I think there’s ample room for a handful of winners, while Sea has optionality with its digital entertainment and fintech businesses (which have better margins).

The stock’s decline puts it on a price-to-earnings-growth (PEG) ratio of 0.7. Remember, anything below 1.0 is considered potentially undervalued, indicating that Sea offers growth at a reasonable price.

If the stock stays around the $120 mark (or drops lower), I plan to add to my holding in January (once Christmas spending’s out of the way!).

Direct-to-consumer healthcare

Next, we have Hims & Hers Health (NYSE:HIMS). Founded in 2017, this is probably the riskier one to consider right now. However, with a modest market-cap of $7.9bn, it also has the largest potential given its disruptive business model.

So what does Hims & Hers do? It operates an online health platform, where professionals can approve treatments for hair loss, obesity, acne, menopause, mental health, and more. The medication is then sent directly to the front door.

That is far less hassle than the old model of booking a doctor’s visit, going in person to a practice, then a pharmacy.

An increasing amount of the company’s revenue is subscription-based, with subscribers growing 21% in Q3 to almost 2.5m. These are mainly in the US, but the company’s expanding internationally.

In the UK, the firm’s launching weight-loss membership and treatment plans, including branded GLP-1 options such as Mounjaro and Wegovy, starting at £149 a month. Roughly 64% of UK adults are overweight or living with obesity.

The main risk here is competition, with various digital health platforms knocking about. It’s far from clear yet that Hims has a durable competitive advantage, so I haven’t made this one of my top holdings.

However, this is a fast-growing healthcare disruptor, with Q3 revenue surging 49% to $600m. Full-year revenue’s set to skyrocket nearly 60% to $2.3bn, giving a price-to-sales multiple of just 3.5.

And management expects full-year adjusted EBITDA of $307m-$317m. That would be good for a 13% margin, hinting strongly that this model operating at full scale could be very profitable.

The stock’s down 49% since February’s peak.

Opportunities abound

Truthfully, it was hard to narrow this down to just two shares. Many of my favourite disruptive growth stocks — including Wise, Uber, Duolingo, Roblox, On Holding, and MercadoLibre — have pulled back significantly of late.

As we head into 2026, I’m seeing many other opportunities emerging. I think it’s going to be a great year for stock-pickers.

The post My top 2 disruptive growth stocks to consider buying in 2026 appeared first on The Motley Fool UK.

AI agents

Let’s start with business software giant Salesforce (NYSE:CRM). This S&P 500 stock has had a decent little run recently, rising 15% in the past couple of weeks. Year to date, however, it’s still down 21%.

This reflects concerns that AI agents might disrupt its per-user software model. Put simply, if AI agents make human employees more efficient, companies may hire fewer people (or need fewer full-access licenses). Or they may build their own AI agents.

While this is a theoretical risk, it’s important to note that the company’s own AI agent platform (Agentforce) is gaining real momentum.

Agentforce’s annual recurring revenue (ARR) hit $540m in Q3. And it had over 9,500 paid deals in place, up 50% quarter on quarter, making it Salesforce’s fastest-growing product ever.

Over 50% of Agentforce deals came from existing customers, demonstrating the firm’s ability to cross-sell these AI products. Together with Data Cloud, it generated $1.4bn in ARR.

Crucially, management sees these offerings contributing towards its aim of at least $60bn in organic revenue by fiscal 2030 (up from $37.9bn in fiscal 2025).

My view here is that AI will bolster Salesforce’s offerings rather than render them obsolete. And with the stock trading at a cheap forward price-to-earnings (P/E) ratio of 20, I think it’s worth checking out.

The agentic enterprise is a new paradigm. Customers will…use Salesforce to be the platform for digital labour, for sales, for service, for marketing and the impact on the way we can monetise those relationships is exponential. It’s not linear growth. It’s exponential.
Miguel Milano, President and Chief Revenue Officer at Salesforce

Three digital businesses

The second growth stock is Sea Limited (NYSE:SE). This is the firm behind Shopee, which is Southeast Asia and Taiwan’s leading e-commerce app.

Shopee would be impressive enough, but Sea also owns gaming platform Garena, which has over 670m active users. Garena’s behind global smash-hit game Free Fire.

Meanwhile, fintech business Monee isn’t too shabby, generating nearly $1bn in revenue Q3. That represented 60.8% year-on-year growth.

Despite putting up solid numbers, Sea’s share price is down 35% since September, as investors worry about regional competition from the likes of JD.Com and TikTok.

To maintain market share, Shopee has been investing heavily in logistics, which is temporarily putting pressure on margins.

However, I think this dip is a strong buying opportunity to consider for three reasons. First, despite fierce competition, the company is still growing strongly. Its on course to drive a 33% increase in revenue this year, to over $22bn. And net profit is expected to surge 155% to around $2.2bn.

Second, the stock now looks good value. The price-to-sales ratio is 3.8, which is well below its historical average of 9 (dating back to 2017), while the forward P/E multiple for FY 2027 is 23.

For a company expected to grow sales and earnings at 30%+ moving forward, this looks like a potential bargain.

Finally, the e-commerce and fintech growth opportunity across fast-growing Southeast Asia is enormous. This makes Sea Limited one of several stocks I’m watching closely in 2026.

The post 2 top growth stocks to consider buying for an ISA in 2026 appeared first on The Motley Fool UK.

Specifically, it gets called the ‘Amazon of Southeast Asia’. Unlike Amazon however, Sea’s stock isn’t near an all-time high. Because despite surging 261% in the past two years, it’s still 63% below a peak reached in late 2021.

Let’s take a closer look at the ‘Amazon of Southeast Asia’ to see why I think this growth stock is worth considering buying today.

Riding multiple growth waves

Singapore-headquartered Sea is a technology conglomerate with three digital platforms: e-commerce (Shopee), digital finance (Monee), and digital entertainment (Garena).

Shopee is the largest e-commerce player across Southeast Asia, operating in Indonesia, Malaysia, Thailand, Taiwan, Vietnam, the Philippines, and Singapore. It’s also growing very quickly in Brazil, where it’s taking on MercadoLibre.

Monee enhances Shopee’s e-commerce platform, offering Buy Now, Pay Later loans to consumers and financing to merchants.

Finally, Garena publishes video game titles across Southeast Asia, including Call of Duty: Mobile. It also develops its own titles, notably smash-hit battle royale game Free Fire.

Purring growth engine

The company enjoyed breakneck sales growth before and during the pandemic. However, this slowed dramatically in 2022 when management pivoted to focus on efficiency and profitability.

This change in strategy, along with a rotation out of growth stocks due to rising interest rates, sent the share price crashing.

Fast forward to now though, all three of the company’s divisions are profitable. Not only that, but the growth engine is purring again, as demonstrated in Q3.

Group revenue jumped 38% to $6bn, while adjusted EBITDA surged 68% to $874m. Shopee’s gross merchandise volume grew 28%, boosted by its subscription programme, where members are spending five times more than non-subscribers. Ad revenue rocketed over 70%.

Meanwhile, Monee’s loan book expanded 70% while maintaining a stable risk profile. And Garena reported 671m users, its highest number since the pandemic gaming boom in 2021.

Wall Street is bullish

Now, despite this impressive growth, Shopee still faces plenty of competition across Asia. And its margins are wafer-thin today, not helped by the costly logistics of servicing remote Indonesian islands (an issue that should ease as scale improves).

Also, aggressively expanding the loan book adds risk, especially if Southeast Asia runs into financial trouble.

On balance though, I think the potential long-term rewards outweigh the risks, especially with the stock down 33% since September.

The forward price-to-sales ratio is now 3.9 — a significant discount to its historical average — while the forward price-to-earnings multiple is 33. Neither is demanding for a fast-growing technology company.

Going on Yahoo Finance’s data, the five-year PEG ratio here is just 0.48. For context, anything below 1 is seen as potentially undervalued.

Given this, it’s not surprising that most Wall Street analysts are bullish. In fact, 88% rate Sea a Buy, with none recommending selling it.

The average share price target is 46% higher than the current $131, suggesting the stock could crush the S&P 500, assuming these targets are broadly correct (which isn’t guaranteed, of course).

Looking ahead, the long-term opportunity is enormous, with e-commerce and digital finance penetration in Southeast Asia still very low today.

As Sea continues monetising its platforms with digital ads, profits should climb much higher in the years to come.

The post Meet the top growth stock down 63% that experts think will crush the S&P 500 appeared first on The Motley Fool UK.

A three-pronged tech conglomerate

Today, Singapore’s Sea Limited (NYSE:SE) isn’t much known in the West. But it’s already a big deal in Southeast Asia, where it owns the largest e-commerce platform (Shopee). Last year, Shopee’s gross merchandise value (GMV) rose 28% to surpass $100bn.

Sea also owns Garena, a leading online games platform. Garena is the developer and publisher of Free Fire, an incredibly popular mobile battle royale game (100m+ people play it every day). It also hosts esports tournaments around the world.

Finally, there’s Monee (formerly SeaMoney). This is a fintech business, offering loans and various other digital financial services. In Q2, revenue in this unit surged 70% to $883m. It’s also turned profitable, joining the other two divisions.

Stepping back then, Sea is operating across multiple high-growth markets. There’s e-commerce, social shopping (livestreaming), digital entertainment, gaming/esports, digital lending, digital advertising, and more.

Now, the company faces a lot of competition in these areas. For example, Shopee’s market share in Vietnam has reportedly fallen from 68% to 62%, due to intense competition from TikTok Shop. Together, they command around 97% of Vietnam’s e-commerce market.

To combat this rising threat, Shopee is ramping up its own short-video commerce and livestream selling. Ferocious competition is something to consider, though, as it could start weighing on margins.

Growth and valuation

This risk is magnified because Sea isn’t a cheap stock. It’s trading at 5.9 times sales and 43 times forward earnings, indicating that investors are having to pay up to become shareholders.

Nevertheless, it’s hard not to be impressed with Sea’s growth. In Q2, group revenue jumped 38.2% to $5.3bn. Looking ahead, Wall Street expects the top line to swell to roughly $31bn by 2027 (up from $13bn in 2023).

Moreover, operating leverage is starting to kick in. In the first half of 2025, net income attributable to shareholders exploded more than tenfold, from $58m to $809m. The market expects net profit to top $5bn by 2027.

Given this improving profitability, I don’t think the stock is grossly overvalued. Based on the forecasts for 2028, the forward P/E ratio drops to around 25.

Foolish takeaway

As mentioned, Asia is expected to grow tremendously over the next two decades. With Gen Alpha coming of age and the region’s middle class exploding, e-commerce and fintech should be among its biggest winners.

But it’s worth noting that Shopee is also seeing great success in Brazil. Indeed, it has now overtaken regional leader MercadoLibre by order volume in the country. That’s something even Amazon hasn’t been able to do!

Finally, I should point out that Sea’s shares aren’t eligible for an ISA under UK tax rules. However, investors can still buy them through a SIPP or a general investment account.

With the stock still 46% lower than its 2021 peak, I recently took a small position in my SIPP. I’ll look to build this out over time on dips.

The post 1 top growth stock to consider for a SIPP before Halloween appeared first on The Motley Fool UK.

In hindsight, I gave up too early on this tech company. It has revved up the growth engine once more while turning firmly profitable.  

And the share price sure has responded positively, surging over 400% in two years. Despite this, Sea’s still nearly 47% off its 2021 peak. 

Here are five reasons I’m seriously considering re-buying the stock.

1. Huge market opportunity

When I’m weighing up a growth stock, I want to see a massive market opportunity. Sea certainly ticks that box.

Shopee, its flagship e-commerce arm, dominates in Southeast Asia while also expanding in Brazil. In Q2 2025, Shopee processed 3.3bn orders worth nearly US$30bn in gross merchandise value, up around 28% year on year.

E-commerce penetration is still relatively low across much of Asia, which means plenty of runway remains. And its fintech arm (Monee) is quietly scaling into a potential fintech super-app.

Meanwhile, gaming unit Garena owns the popular title Free Fire.

2. Profitability

For years, Sea was criticised as a cash-burning machine. Not anymore. In 2023, it delivered its first full year of positive net income, and it has kept up the momentum since.

Shopee’s operating leverage is improving, while Garena remains highly cash-generative. Monee is also now contributing positively as digital lending and payments expand across the region.

The name Sea, by the way, is an acronym for SouthEast Asia. 

Looking ahead, the company is expected to almost double earnings per share between 2025 and 2027. 

Our company has reached a stage where we can pursue growth opportunities while improving profitability.

Founder and CEO Forrest Li

3. Valuation

At first glance, Sea stock looks very expensive. It’s trading at 98 times trailing earnings.

However, as mentioned, the firm is ramping up profits at a fair old clip. Looking further out to 2027, the forward earning multiple drops to around 31. 

Of course, risks remain. Competition from Alibaba’s Lazada in Southeast Asia, MercadoLibre in Brazil, and even TikTok Shop is intensifying.

Any slowdown in consumer spending, worsening tariffs, or an economic slowdown, could also hit e-commerce volumes.

However, I think the longer I intend to own shares, the more the valuation makes sense. My ideal holding period is five to 10 years. 

4. Founder-led

Sea is run by co-founder and CEO Forrest Li, who has steered the company from start-up to emerging powerhouse.

He’s proven adept at refocusing on profitability when needed, without damaging long-term growth. 

This adaptability is a key reason I’m optimistic.

5. Multiple growth engines

Finally, I like that Sea isn’t a one-trick pony. Shopee is growing rapidly, while management says that Free Fire has “established itself as an evergreen franchise”.

Sea is exploring ways to push the boundaries of gaming by incorporating artificial intelligence. 

Meanwhile, Monee’s credit business is still in the very early stages across Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

What we have here then is a vast addressable market, surging profitability, a reasonable valuation on a forward-looking basis, and quality founder-led management. 

As such, I’m very tempted to rebuy this stock, and think it deserves a place on growth investors’ radars today.

The post 1 world-class growth firm I’m tempted to buy for my Stocks and Shares ISA appeared first on The Motley Fool UK.

EV battery maker

Of this trio, two were new buys and one was a top-up. The two newbies were CATL and Applovin (NASDAQ:APP).

China’s CATL is the world’s largest electric vehicle (EV) battery maker. In Q2, net profit jumped 34% to 16.5bn yuan ($2.3bn). This is impressive growth given the fragile Chinese economy.

The firm is opening a battery plant in Hungary to expand internationally. And as the world transitions to EVs, CATL’s future looks bright. 

CATL is already listed in China, but went public in Hong Kong in May, raising $5.2bn. However, when considering a stock, I listen to management speak on earnings calls. This helps me build conviction (or not). 

With CATL’s in Chinese, I can’t, so won’t be investing.

Skyrocketing ad-tech stock

Applovin is an ad tech firm that operates an AI-powered platform helping apps monetise more effectively. Growth has been spectacular. In Q2, revenue surged 77% to $1.26bn, while earnings growth was also very strong.

Revenue per installation jumped 70% and installations increased 8%. This means AppLovin earned significantly more per ad served while also reaching more users.

Management said this momentum will continue into Q3, with 59% revenue growth anticipated. The stock has been on fire — up 425% in a year!

Applovin’s AI engine, Axon 2.0, is now optimising advertising campaigns across e-commerce, connected TV, and fintech. These additional verticals significantly extend the total addressable market. 

However, as well as being massive, the global digital ad market is very competitive. Beyond giants like Amazon, Google, Meta, Applovin is also competing with The Trade Desk.

Additionally, three short sellers have accused it of misappropriating user data. While Applovin denies this and continues growing strongly, this issue is at least worth bearing in mind. 

At first glance, the stock looks very pricey at 29 times sales. However, AppLovin is already incredibly profitable. Forecasts put the shares on a forward price-to-earnings (P/E) ratio of around 30 by 2027, which seems more reasonable.

While it might be worth a look, I find the third stock more interesting.

Riding a wave of growth

That is Sea Ltd (NYSE:SE), a Singapore-based tech giant that runs Shopee (e-commerce), Garena (gaming), and SeaMoney (digital finance). Sea is an acronym for Southeast Asia.

When interest rates surged in 2022, the Sea share price crashed 87% in just 12 months. This fall was accelerated by slowing growth following the pandemic’s online shopping boom.  

However, Sea is back on track. In Q2, revenue increased 38% to $5.3bn, with profitability across all three units. 

The biggest risk I see here to Sea’s growth is an economic slowdown in its key Asian markets caused by tariffs.

Longer term, however, e-commerce and digital finance are tipped to boom across the region. Shopee is the largest e-commerce platform in Southeast Asia while management says its hit game Free Fire has become an “evergreen franchise“.

The stock’s trading at 65 times next year’s forecast earnings, but this falls to 31 by 2027. Again, for a high-quality growth company still early in optimising profitability, that’s not bonkers.

I reckon Sea’s worth considering and I’ve put it on my watchlist.

The post 3 growth stocks this top FTSE 100 trust has been snapping up appeared first on The Motley Fool UK.

Established chipmaker

Nvidia (NASDAQ: NVDA) has excelled in the past few years, rising 350% in the past five. However, due to macroeconomic concerns, the Nvidia share price has sunk 40% in the past six months and around 8% in the past year. There are equally some worrying signs for the firm. For instance, in Q2, the company expects a $500m reduction of revenues, due to the Russia invasion of Ukraine and Chinese lockdowns. But I see these as short-term issues. 

Indeed, the firm is still reporting excellent financials, with Q1 revenues up 46% year-on-year to $8.29bn. Further, with Q1 operating profit margins of over 40%, Nvidia has one of the largest margins among all growth stocks. This has also enabled the group to launch a share repurchase programme of $15bn until December 2023, which should boost metrics like earnings per share. Therefore, Nvidia shares are a no-brainer buy for me. 

More resilient growth stock 

It is rare to find growth stocks that are raising guidance in the current macroeconomic environment. However, Salesforce (NYSE: CRM), a cloud-based software and consumer relationship management company, recently increased its adjusted profit forecasts for 2022 to $4.75 per share, up from previous forecasts of $4.63. This has been driven by expanding operating margins, highlighting that the firm has dealt with inflationary pressures excellently. 

There are still risks for the firm, however. For instance, some analysts have pointed to the potential for companies to cut costs to cope with inflation, and this could include cancelling subscriptions with Salesforce. However, with a price-to-earnings ratio of around 35, which is historically cheap for the group, I am still tempted to add more Salesforce shares to my portfolio. 

Global e-commerce giant 

Sea Ltd (NYSE: SE) is the final growth stock I would buy on the dip. After sinking over 70% in the past year, this is the heaviest faller out of the three. With the group continuing to post very large losses – including a total adjusted EBITDA loss of $593.6m in 2021 – it is not hard to see why. However, this loss has been recorded due to the firm’s heavy investment into its e-commerce sector. 

This investment has led to soaring revenues. For example, in 2021, revenues for the group reached $10bn, which was a 127.5% increase year-on-year. This growth has also continued into 2022, with Q1 revenues up over 60% year-on-year. Although this signals slightly slower growth, it is still far higher than other growth stocks. After the recent dip, Sea Ltd also has a forward price-to-sales ratio of under 3, compared to over 30 at the start of 2021. This indicates that the e-commerce company has dipped too far. Therefore, I am adding more Sea Ltd shares to my portfolio. 

The post With £1,000, here are the best growth stocks to buy now appeared first on The Motley Fool UK.

Such a significant fall has mainly been caused by inflationary pressures, which have led to several recent interest rate hikes. This reduces the value of future cash flows and makes it more expensive to borrow for growth. This is particularly damaging on growth stocks, which constitute the majority of the Nasdaq index. But as history has shown, these sell-offs can present perfect opportunities to buy quality companies. For example, in the dotcom bubble, Amazon stock sank around 90%, before climbing around 30,000% over the next 20 years! 

Sea Ltd (NYSE: SE) an e-commerce and digital entertainment company based in Southeast Asia, is one growth stock I think has now reached solid buying levels. Although it is not actually listed on the Nasdaq, instead opting for the NYSE, it has the traits of a typical Nasdaq stock, including its strong growth profile.

Recent trends in the Sea Ltd share price

Over the past few months, the Sea Ltd share price has been on a solid downward trend. In fact, after reaching highs of $370 in October 2021, the company has now sunk to around $65 and is down around 70% over 12 months. This is a fall of over 80%, not too dissimilar to Amazon’s decline after the dotcom bubble burst 20 years ago. 

Alongside the difficult macroeconomic environment for growth stocks, Sea Ltd has faced several individual concerns. For example, in its digital entertainment sector, its flagship app Free Fire has been banned in India. This is due to security concerns revolving around the company’s links to China. There’s also evidence of a recent moderation in online activities and fluctuations in engagement. Accordingly, there’s a fear that growth is slowing in the digital entertainment sector, and this will lead to less money to invest into other sectors of the business. 

In addition, losses at the company are soaring. Indeed, for 2021, total adjusted EBITDA was a loss of $593.6m. This was due to the heavy investment into both Shopee, the firm’s e-commerce sector, and its new financial services sector. 

Why am I continuing to buy this growth stock?

Despite the soaring losses, and slower growth prospects, I remain optimistic about Sea Ltd’s future. For example, last year, e-commerce revenues were able to reach $5.1bn, a 136% year-on-year increase. This year, a further 76% increase increase is expected. The company has also shown discipline recently, pulling out of the French market. This will allow it to focus on growing markets, such as Latin America, which should help fuel growth. It should also reduce expenses. 

Excellent revenue growth is a sign that Sea Ltd is growing market share globally. Hopefully, this will translate into strong profitability in the future. After the recent sell-off, Sea Ltd also trades on a forward price-to-sales ratio of less than 3. In 2021, the growth stock had a P/S ratio of over 30, so it may now be severely underpriced. Therefore, despite worries around inflation and slightly slower growth, this is a stock I’ll continue adding to my portfolio at these levels. 

The post As the Nasdaq plunges, I’m buying this growth stock appeared first on The Motley Fool UK.

But as an investor I take a long-term outlook, and these are two stocks I feel are no-brainer buys right now.

A US fintech stock

SoFi Technologies (NASDAQ: SOFI) went public via a SPAC at the end of 2020 and had an incredible start to life as a public company, reaching around $25 in January 2021. However, the past few months have been far less pretty for the fintech, and it’s currently priced at under $10. For a company with such excellent potential, this seems too cheap.

For example, SoFi is attracting new customers at extraordinary rates. Indeed, in the full year 2021 trading update, it had around 3.5m members, compared to just 1.8m members the year before. Full-year revenues were also able to rise 67% year-on-year to $285m. This demonstrates the excellent growth achieved by SoFi, and I feel this is only the start.  

I was also encouraged by the fact it recently acquired a bank charter, meaning that it will be able to directly lend to customers. This should help offset some of the inflationary pressures, as it will be able to lend at higher interest rates. Accordingly, this should boost future profitability.

Unfortunately, SoFi trades at a fairly high price-to-sales ratio of around 8, and it remains unprofitable. Yet while these are risks, SoFi’s incredible growth is showing no signs of any slow-down, and I continue to believe this growth stock is a long-term buy.

A growth stock with over 100% revenue growth

Sea Limited (NYSE: SE) is another growth stock that piques my interest. Indeed, in the company’s full-year trading update, it reported full-year revenues of $10bn, a 127% year-on-year increase. This was partly due to its strong diversification, which includes the modern e-commerce segment, called Shopee, and its renowned digital entertainment sector, Garena. After recent dips, the company also trades at a price-to-sales ratio of under 7, very cheap for a stock that is growing at such an incredible rate.

Even so, there are slight signs that growth may be slowing. For example, as the pandemic starts to subside, there has been a recent moderation its engagement in the company’s digital entertainment sector. The e-commerce segment also saw revenue growth slow to 90% which, although still incredibly high, was lower than previous quarters.

Losses are also continuing, and in 2021, it reported an adjusted EBITDA loss of $593m. But this is due to the heavy investment into Shopee, which I hope will pay off in the future. Therefore, this is another growth stock I’ll continue to add to my portfolio, as its potential is far too tempting.

The post Forget inflation! 2 no-brainer growth stocks to buy today appeared first on The Motley Fool UK.