The stock market is going through a major correction. As of market close on Friday, April 4, the Nasdaq 100 Index is actually down 21.6% from all-time highs, which means it has officially entered a bear market. The S&P 500 index has not passed the 20% threshold for a bear market, but it is still off 17.5% from its highs.

Plenty of stocks are down even more on this tariff-induced tumble. While many investors rush to the exits, smart contrarian investors know now is the time to buy some stakes in high-quality businesses that are now trading on the cheap. Here are two stocks to buy during this Nasdaq market correction.

1. Alphabet's long-standing dominance

Up to the plate first is Alphabet (GOOG -0.20%) (GOOGL -0.44%). The technology giant is down 29% from all-time highs and is currently trading at a lower price than in November 2021 -- a brutal drawdown for shareholders in the wake of this tariff tantrum, further exacerbated by the artificial intelligence (AI) competition coming for the Google Search throne.

As a company that makes money on advertisements for consumer goods, Alphabet may see slowing growth if the fears around these tariffs materialize into a recession. We should have a longer time horizon than this.

What will matter over the long run is if Google Search, YouTube, Android, and Google Cloud maintain dominant positions in their respective niches. With Alphabet's technological prowess, innovative AI tools, and a hardware advantage with its tensor processing computer chips, I think the company is in pole position to win in all the fields it is playing in.

AI should be thought of as an opportunity for Alphabet, not a threat. Today, the stock trades at a cheap price-to-earnings ratio (P/E) of 18. Revenue grew 15% year over year in 2024 in constant currency figures. Over the long haul, due to the rapid growth at Google Cloud and digital advertising market-share gains, I believe Alphabet can keep growing its revenue at a double-digit rate. Earnings should grow even quicker through margin expansion. Sprinkle in some dividends and share buybacks, and Alphabet looks like a stock poised to deliver monster returns to shareholders over the next decade.

GOOG data by YCharts

2. Airbnb's global opportunity

Airbnb (ABNB -2.06%) is a simpler story than Alphabet. It has one business -- an online travel marketplace -- centered on its disruptive home-sharing model. This disruption is still driving growth for the business today as the company works to perfect its marketplace for both hosts and travelers.

Last year, $81.8 billion was spent on the Airbnb marketplace, growing 12% year over year. Revenue grew in line with gross booking spend due to Airbnb's take rate model, meaning it earns revenue as a cut of every dollar spent on Airbnb. The company is also highly profitable today, posting net income of $2.6 billion last year for a margin of 24%. This is all while Airbnb is reinvesting heavily in new geographies and new product lines to add to the Airbnb marketplace.

I believe both of these initiatives can drive durable growth for Airbnb over the next 10 years. New geographies such as Japan and South Korea do not have nearly the supply as North America or Western Europe but remain highly popular travel markets (especially Japan). The more that supply grows on Airbnb, the more the company's competitive advantage grows.

Plus, once it layers in these new products that are getting announced in 2025, it will be able to further grow spending from existing hosts and travelers using the service. We don't have exact details on what new products Airbnb is adding to the marketplace but should get further information this year. Investors should watch these announcements closely.

As of this writing, Airbnb stock is off 51% from all-time highs and has a market cap of $67 billion. Subtract out a large net cash position and you get an enterprise value below $60 billion. Today, Airbnb generates net earnings of $2.4 billion while still investing heavily for growth. Over the long term, I expect revenue to keep growing and profit margins to expand to at least 30% (if not higher). If revenue can grow to $20 billion in a few years compared to $11.2 billion today, a 30% profit margin equals $6 billion in net income. Or, in other words, its earnings ratio compared to the current enterprise value would break below 10.

That sounds like a cheap stock to me.