New
2 Super Growth Stocks To Buy In Bunches In 2025
A new year is upon us, and 2025 is sure to serve up all kinds of twists and turns. But while no one knows exactly what the future may bring, backing strong companies that operate in growth markets remains a great path to long-term enrichment.
For investors who back the right companies and hold steady through volatility, it's possible to secure life-changing returns. If you're looking for growth stocks to buy that can strengthen your long-term financial future, read on to see why two fool.com contributors think these innovative companies present great investment opportunities right now.
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A rebounding lending business plus more
Jennifer Saibil (SoFi): It was looking iffy for a while, but SoFi (NASDAQ: SOFI) stock ended the year up 57%. That was after more than doubling in 2023, and SoFi is likely to keep rewarding investors in 2025.
Investors may be excited about SoFi's upcoming fourth-quarter report because it's expected to be the fifth straight quarter of positive net income, and it will mark the company's first full year of positive net income. It has come in ahead of expectations for earnings per share (EPS) for the past four quarters, and if it beats in the fourth quarter, that should be reflected in the stock.
It's also benefiting from lower interest rates, both in its business and its stock price. Loans, and specifically student loans, are its core product. Higher interest rates led to a pressured business in 2024, with lower revenue growth, including a quarter with a small decline. Profit from the lending business was also being squeezed, and since this business is responsible for most of the company's total profit, the market was less enthused with what should have been exciting updates about positive net income.
With the Federal Reserve's interest rate cuts in September, plus SoFi's update in the third quarter that the lending business would be much better than expected for the full year, the market has become much more enthusiastic about SoFi's prospects this year. If it beats on EPS and comes through on lending revenue, expect the stock to jump.
It has expanded into a broad assortment of financial services, though, and that's contributing to growth in other ways, protecting the whole business and boding well for the future. It offers a full financial services app that's all digital, as well as a white-label financial platform for business clients, and these segments are growing quickly.
You can't time the market, and if you have a long-term outlook, it doesn't matter if you buy today or tomorrow. But as SoFi's story gets better and better, investors who are still on the fence have more to gain by buying in as soon as they can.
This tech giant can still deliver huge wins for long-term investors
Keith Noonan (Amazon): Amazon (NASDAQ: AMZN) is the world's largest e-commerce company. It's also the world's largest provider of cloud infrastructure services. But while e-commerce accounts for the overall majority of its revenue, it's the Amazon Web Services (AWS) cloud infrastructure business that generates the majority of the profit.
E-commerce is a highly cost-intensive and relatively low-margin business. Meanwhile, the AWS segment serves up great margin and is enormously profitable. It's also the segment best poised to see strong artificial intelligence (AI) tailwinds in the near term.
With the AI revolution still in the relatively early innings, it seems to be a safe bet that demand in the category will continue to power strong growth for AWS. Over time, the company's cloud business should come to account for a larger portion of overall revenue.
Amazon's strength in the online-retail market has also opened up another, far more profitable business for the company -- digital advertising. Thanks to the strength of its e-commerce business, Amazon owns premier real estate when it comes to the online attention economy. It operates a platform that plays a bigger role in online purchases than any other platform or service. As a result, the company has been able to command incredible strength with its digital advertising unit.
Despite still being a relatively young venture for Amazon, the digital ads business has scaled at an incredible pace and is now second to only Alphabet and Meta Platforms in terms of global digital advertising revenue. Like its cloud business, the digital advertising unit also commands fantastic margin.
But while Amazon's cloud and digital advertising businesses are currently the stars of the show when it comes to margin, it would be a mistake to underestimate the long-term profit potential of its massive e-commerce business. The long-term expansion outlook for the online retail still looks very promising, and there's a very good chance that a combination of robotics and AI will power automation that substantially improves margin.
With strong positions in three growth industries and strong potential for continued sales and margin expansion, Amazon stock is a great buy for 2025.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $358,640!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,181!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $478,206!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of December 30, 2024
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jennifer Saibil has positions in SoFi Technologies. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Meta Platforms. The Motley Fool has a disclosure policy.
