Most investors are looking for long-term growth from their investments. But it can pay for them to have some of their investment portfolios in higher-risk individual stocks with higher potential returns. And growth stocks that beat the market average will mean that their portfolios make significant gains over time.
Research from forex brokers FXOpen reveals the top five growth stocks of some of the world’s most recognised companies over the last 10 years. It’s perhaps no surprise that tech companies are some of the big winners.
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1. Tesla
In the period from 2012 to 2021, Tesla achieved astounding share price growth of 13,198%. That means £1,000 invested in 2012 would be worth an amazing £131,980 today, making Tesla the top growth share.
Back in 2012, Tesla’s yearly percentage growth was an underwhelming minus 4%. But Elon Musk’s electric car company soon began to creep up the inside lane past the other companies in FX Open’s study.
The electric car company that’s known for innovative technology has seen huge rises in its share price in the last two years, overtaking the share price growth of Netflix.
Of course, Tesla shares are unlikely to grow so quickly in the future as the success of the company is already baked into the share price. If you invest now, then you may not see such stellar returns on your investment.
2. Netflix
Over the past 10 years, Netflix has seen its share price grow by 5,348%, making it number two on the list of top growth stocks.
This growth reflects the success of Netflix’s expansion into Europe in 2012 and a further 130 new markets in 2016. The company’s subscription numbers have risen dramatically. This year, Netflix hit 214 million subscribers, nearly ten times the number of subscribers it had in 2011.
Alongside global expansion, the streaming service started making well-received original content in 2012, which further boosted its popularity.
3. Facebook
Facebook reported the third-highest growth in the study, posting an amazing share growth figure of 1,428%. It beat the growth of its closest competitor Twitter.
Facebook is one of the top growth stocks owing to its increasing popularity. By the end of 2019, the company boasted more than 2.5 billion users. This growth has been bolstered by aggressive acquisitions such as Instagram in 2012 and WhatsApp in 2014.
The social media company has had some dips during its time on the stock market so far, in particular in 2018, when 50 million people had their data compromised by Cambridge Analytica.
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4. Amazon
Amazon is also one of the top growth stocks as it has seen rapid growth of 1,428% over the last 10 years. The company has expanded into just about every possible market, including shopping, online video and music streaming, and subscription services.
Not bad for a business that started from one man’s garage.
5. Microsoft
Microsoft may not be as trendy as Apple, but it still has a great core business and billions of loyal customers. This is reflected in the company’s share price growth of 1,247% in the last 10 years.
Microsoft’s operating system and office applications are still used by customers across the world, and the software company has seen strong sales in recent years.
Other growth stocks
Other top growth stocks in the last 10 years include Apple (1,037% growth), Paypal (654% growth) and Nike (594% growth).
