Wiserr
Active member
What are Growth Stocks?
Growth stocks are in essence young companies. Young in terms of age.
Characteristics of growth stocks
High growth rate (especialy revenue)
No history of paying dividends.
Play in new or merging areas
High profit margins
Popular growth stocks
A sector in which you will find many growth stocks is in the tech space. You can take firms such as Facebook, Amazon, Peloton, Zoom and even newcomers such as Snowflake andJFrog as growth stakes.
Another area where you will several growth stocks is the tele health and biotech space where companies such as Teledoc, Livongo and co operate.
Pros of growth stocks
The rapid growth is the biggest advantage. Getting in at the right moment means one can key into massive capital appreciation. Investors who have held stocks such as Facebook and Netflix since their IPOS may have made massive returns. Well over a 1000%.
But Downsides You may see some what bloated valuations as these firms have largely been bid up. Many of them are also loss making and may not be paying dividends. It may take several years before these firms make a profit
one of the major advantage of growth stock is that they tend to have hight growth rate.
what do you understand by growth stock.
Growth stocks are in essence young companies. Young in terms of age.
Characteristics of growth stocks
High growth rate (especialy revenue)
No history of paying dividends.
Play in new or merging areas
High profit margins
Popular growth stocks
A sector in which you will find many growth stocks is in the tech space. You can take firms such as Facebook, Amazon, Peloton, Zoom and even newcomers such as Snowflake andJFrog as growth stakes.
Another area where you will several growth stocks is the tele health and biotech space where companies such as Teledoc, Livongo and co operate.
Pros of growth stocks
The rapid growth is the biggest advantage. Getting in at the right moment means one can key into massive capital appreciation. Investors who have held stocks such as Facebook and Netflix since their IPOS may have made massive returns. Well over a 1000%.
But Downsides You may see some what bloated valuations as these firms have largely been bid up. Many of them are also loss making and may not be paying dividends. It may take several years before these firms make a profit
one of the major advantage of growth stock is that they tend to have hight growth rate.
what do you understand by growth stock.