Investors seeking growth opportunities may find technology stocks particularly attractive. The history of stock investing in the US dates back to the 1600s, but technology companies that have emerged over the past few decades have demonstrated significant growth potential, evidenced by the impressive performance of the Nasdaq-100 index. Here, we discuss two stocks that could generate a fivefold return over the coming decade.
CrowdStrike is a cybersecurity company that offers endpoint protection and solutions across the cybersecurity stack. Its use of artificial intelligence (AI) to automate protection for its users, and the constant improvement in its technology with more customers joining the platform, have contributed to its rapid growth, with a compound annual growth rate of 86.8% since 2017. Based on the current price-to-sales ratio of 14.2, the company will need to grow its revenue by 17.5% annually over the next ten years for its stock to rise fivefold, a pace that it is currently exceeding.
Duolingo is a language education platform designed for smartphones and mobile devices that has gained popularity among people seeking to learn a second language. The platform is free to use, generating revenue by selling subscriptions to a small fraction of its user base. With 60.7 million monthly users, the platform’s gamified approach to language learning and increasing popularity could lead to significant growth in revenue, potentially leading to a fivefold return on investment over the coming decade.