Stocks to Buy Now With Tariffs. 3 Top Picks Amid Market Panic

Posted on April 7th, 2025

Disclaimer: The views expressed in this article are my own. This is not financial advice. Always do your own research before investing. Only for Research Purposes And May Sometimes Be Inaccurate.

Tariffs are in the headlines and so is the panic.

Following President Trump’s announcement of global reciprocal tariffs, the stock market has responded with a gut punch: the S&P 500 is down 16% as of today, April 7th 2025.

Investors are rotating into cash, gold, and defensive sectors. Growth stocks have taken a beating.

But here’s the thing: this isn't new. We've seen this before — and every single time, the market bounced back stronger than ever.

In May 2010, the S&P 500 declined ~14%. By April 2011, it had shaken off the selloff to rebound by 32%.

One month after, May 2011 saw a selloff that lasted 5 months and wiped off 18% of gains and literally recovered into one of the longest bull runs that lasted 83 months.

As you'd expect, another cool-off period succeeded gains that were as high as 175%. October 2018 saw the S&P 500 lose 18& and then rebounded ~31% until January 2020. The beginning of the global pandemic.

The pandemic ate up 23% of the gains made but then the market rebounded with ~91% gains in the next 20 months.

If history teaches us one thing, it is that the U.S will always find a way to innovate and markets recover.

I remain bullish on the U.S for the long term. 

Top 5 Stocks to Watch During This Pullback

1. AppLovin Corporation – [Information Technology] (Ticker: APP)

Why? AppLovin's AI-powered ad network, Axon, has been a key differentiator, enhancing ad targeting and revenue generation for mobile developers. 

The company’s investment in machine learning for real-time bidding and app monetization gives it an edge over competitors like Unity Software (U) and ironSource (now merged with Unity).

To estimate AppLovin’s intrinsic value, we use the Discounted Cash Flow (DCF) model based on projected future cash flows.

DCF Methodology & Assumptions:

• Revenue Growth Rate: 20% CAGR (based on historical and industry trends).
• Free Cash Flow (FCF) Growth: Starting at $2.1B in 2024, growing in line with revenue.
• Discount Rate (WACC): 10.5%, reflecting the company’s risk-adjusted return.
• Terminal Growth Rate: 3.5%, accounting for long-term industry growth.

DCF Valuation Scenarios:

1. Base Case (Expected Scenario):
   Intrinsic Value Per Share: ~$320
   Implied Upside: 34% from current price of $228
2. Bull Case (High Growth Scenario - 25% YoY Revenue Growth):
   Intrinsic Value Per Share: ~$450
   Implied Upside: 65%
3. Bear Case (Slower Growth + Legal Risks - 10% YoY Revenue Growth):
   Intrinsic Value Per Share: ~$180
   Implied Downside: -24%

2. Uber Technologies Inc – [Industrials] (Ticker: UBER)

Why? As of Q4 2024, Uber holds a dominant position in the U.S. ride-sharing market with a market share of approximately 74%, significantly higher than Lyft's 30%.

Beyond ride-sharing, Uber offers services like Uber Eats, Uber Freight, and is expanding into areas such as package delivery and logistics, positioning itself as a comprehensive mobility platform.

To estimate Uber's intrinsic value, we employ the Discounted Cash Flow (DCF) methodology, which involves projecting future cash flows and discounting them to their present value.

DCF Methodology & Assumptions:

• Revenue Growth Rate: Projected at 15% per annum over the next five years, considering Uber's expansion into new markets and services.
• Discount Rate (WACC): Assumed at 9%, reflecting the company's cost of capital.
• Discount Rate (WACC): 10.5%, reflecting the company’s risk-adjusted return.
• Terminal Growth Rate: Estimated at 3%, aligning with long-term economic growth expectations.​

DCF Valuation Scenarios:

1. Base Case Base Case: Assuming the above parameters, the DCF analysis yields an intrinsic value of $95.75 per share, suggesting a 38.8% upside from the current stock price of $64.
2. Bull Case: With a higher revenue growth rate of 20% and a lower discount rate of 8%, the intrinsic value increases to approximately $120.60 per share, indicating a 60.4% potential upside.
3. Bear Case: Assuming a conservative revenue growth rate of 10% and a higher discount rate of 10%, the intrinsic value decreases to around $69.10 per share, close to the current market price, implying limited upside.

3. Airbnb, Inc. – [Consumer Discretionary] (Ticker: ABNB)

Why? Airbnb continues to invest in platform enhancements, user experience improvements, and expansion into new markets. Specific R&D expenditure figures are not publicly disclosed.

Recent reports indicate that Airbnb's CEO, Brian Chesky, plans significant changes for the company in 2025, aiming to reimagine the platform's offerings and enhance user experiences.

Airbnb's platform leverages advanced algorithms for personalized recommendations and offers a user-friendly interface, contributing to its competitive edge in the short-term rental market.​

DCF Valuation Scenarios:

1. Base Case Base Case: Assuming the above parameters, the DCF analysis yields an intrinsic value of $124.79 per share, suggesting a18.9% potential upside.
2. Bull Case: With a higher revenue growth rate of 16%, the intrinsic value increases to approximately $146.50 per share, indicating a 40% upside potential
3. Bear Case: Assuming a conservative revenue growth rate of 8% , the intrinsic value hits prices that we are seeing today at around 105.84 per share. Indicating that this is fairly valued at the time of this writing.

Key Risks & Final Thoughts

⚠️ Tariffs could worsen—monitor trade policy shifts.
⚠️ Growth stocks may keep falling before rebounding (volatility expected).
⚠️ Always diversify—never bet everything on one sector.

The bottomline is that market pullbacks are where fortunes are made. If you're a long-term investor, this could be one of the best buying windows in years.