To The Moon

There's been plenty of speculation that a new bull market could be on the way. The Nasdaq Composite Index came tantalizingly close to reaching bull market levels only a few weeks ago.

For now, though, we're still entrenched in a Nasdaq bear market. But the good news for investors is that there are quite a few great stocks to buy at discounted prices. Here are three unstoppable stocks still down 38% or more to buy on the dip.

1. Alphabet

Alphabet is the least beaten-down of these three stocks. However, shares of the tech giant are still down more than 37% from the high set in late 2021.

One reason behind Alphabet's steep decline is that the advertising market has slowed down considerably. The company generates most of its revenue from advertising on its various platforms, including Google Search and YouTube. Alphabet stock has also taken a hit recently because of concerns that it could be hurt by OpenAI's ChatGPT and Microsoft's integration of the chatbot with its Bing search engine.

I'm not worried about either of these factors. The advertising slowdown will only be temporary. I wouldn't be surprised if Microsoft actually sets up Alphabet for a huge win once Google launches its Bard generative AI app. Even if not, my view is that the doom-and-gloom predictions about ChatGPT's impact on Google Search's business are way overblown.

Alphabet should continue to make a lot of money with its search apps. Its Google Cloud business has a huge growth runway. The company's Waymo self-driving car unit could become a major growth driver over the next decade. Alphabet also has a massive opportunity in quantum computing. This stock won't remain this cheap for too much longer.

2. Amazon

Another FAANG stock has been hit even harder than Alphabet. Amazon's share price is roughly 49% below its previous peak reached in the fourth quarter of 2021.

Macroeconomic headwinds have weighed heavily on the stock. High inflation has caused consumers and companies to watch their spending more closely. It has also contributed to the strong U.S. dollar, which creates unfavorable foreign exchange rates for companies such as Amazon with significant international sales.

These issues could continue to plague Amazon over the short term. Inflation remains stubbornly high. The Federal Reserve's efforts to fight inflation by raising interest rates could even lead to a recession. However, inflation will decline and the macroeconomic headwinds subside sooner or later. Amazon's financial position is certainly strong enough to weather the storm.

More importantly, the company's long-term prospects are bright. E-commerce still has plenty of room to grow. Amazon Web Services could realistically generate more revenue within the next 10 to 15 years than Amazon's entire business does today. Amazon also has tremendous potential in digital advertising, healthcare, and other new markets. I think right now could be a once-in-a-generation buying opportunity with Amazon stock.

3. Adobe

Like Amazon, Adobe has seen its share price plunge close to 50% since Q4 of 2021. Also like Amazon, the big software company seems to have lost its recent momentum after beginning a solid rebound.

Overall economic uncertainty has definitely played a major role in Adobe's dismal stock performance. In September 2022, the company announced plans to acquire collaborative design platform Figma for $20 billion. Investors felt the price tag for the deal was too high, causing Adobe's shares to sink further.

But the stock nosedived yet again just a few days ago on news that regulators oppose Adobe's acquisition of Figma. Adobe almost seems to be in a no-win scenario where investors hate it if it buys Figma but also hate it if the deal falls through.

I think all of this is simply noise. Adobe's business remains strong. It has great opportunities in extending the AI capabilities of its Creative Cloud platform. Every time in the past when Adobe's shares have fallen as much as they have over the last year or so, the stock has roared back. I expect that history will repeat itself.