Got $8,000? 3 Top Growth Stocks to Buy That Could Double Your Money

The median savings account balance for all U.S. families sits at $8,000, according to the Federal Reserve's most recent Survey of Consumer Finances. If those families lock that amount into a 10-year CD that yields 4% annually, their savings would only grow to $11,841.95 by the time it matures. That 48% gain might seem decent, but it could actually fail to keep pace with inflation, and it would underperform many high-growth stocks.

If you're willing to put that $8,000 into a few riskier growth stocks instead, you could potentially double your money (or more) over the next decade -- or, unlike the CD, possibly suffer losses if things don't work out. Here are three stocks that might appeal to those more risk-tolerant investors: AppLovin (NASDAQ: APP), Opendoor Technologies (NASDAQ: OPEN), and SoFi Technologies (NASDAQ: SOFI).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »

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AppLovin

AppLovin is a mobile app publisher that also develops AI-powered app monetization tools for other companies. It expanded significantly by acquiring several of its industry peers, including MoPub and Wurl, over the past four years.

In 2022, its growth flatlined as it posted a net loss. Like many of its peers, AppLovin struggled as the macro headwinds drove many companies to rein in their ad spending.

But in 2023, its revenue rose 17% as it turned profitable again. That recovery was driven by a warmer macro environment and the growing adoption of its AI-powered AXON ad discovery services. For 2024, analysts expect its revenue and earnings to grow 40% and 171%. Those are stunning growth rates for a stock that trades at 47 times forward earnings.

Looking further ahead, AppLovin expects its revenue to grow "20% to 30%" annually for the "foreseeable future." That rosy outlook might make it a great way to profit from the long-term growth of the mobile app, digital advertising, and AI markets.

Opendoor

Opendoor is an "iBuyer" that makes instant cash offers for homes, fixes them up, and relists those properties on its own marketplace. Zillow and Redfin also previously operated their own iBuying platforms, but they both exited that capital-intensive market in 2022 as rising rates chilled the housing market.

Opendoor is the last major iBuyer standing, but its revenue plunged 55% in 2023 as it bought and sold fewer houses. Analysts expect another 27% decline for 2024 as interest rates stay elevated, and it's expected to stay deeply unprofitable.

That outlook might seem bleak, but Opendoor's business could warm up again as interest rates decline and the housing market heats up again. That's why analysts expect its revenue to rise 22% to $6.2 billion in 2025.

With an enterprise value of $2.8 billion, Opendoor's stock looks dirt cheap at just 0.5 times that estimate. Any positive news about interest rates and the housing market will likely drive its stock a lot higher.

SoFi

SoFi, which is short for Social Finance, originally focused on providing a wider range of student loans than traditional banks did. But over the past decade, it expanded its financial services business with mortgages, auto loans, personal loans, credit cards, insurance services, estate planning tools, and a stock trading platform.

That expansion was driven by its takeover of Galileo in 2020, which gave it access to more payment processing and card issuing tools, and the approval of its U.S. bank charter in 2022, which supported its launch of a digital-only direct bank. Its members grew from 2.52 million at the end of 2020 to 9.37 million in the third quarter of 2024.

SoFi's digital-only business model enabled it to expand more rapidly and collect data more efficiently than its brick-and-mortar competitors. It ultimately aims to become a "one-stop shop" that replaces other financial apps.

Like Opendoor, SoFi's business is sensitive to interest rates. It was also affected by the freeze on student loans from March 2020 to September 2023. But as those headwinds dissipate, its business should warm up again. For 2025, analysts expect its revenue and EPS to rise 17% and 12%, respectively. Its stock might not seem cheap at 70 times forward earnings and six times next year's sales, but it could have plenty of room to run as it locks more users into its growing web of financial services.

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*Stock Advisor returns as of December 30, 2024

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AppLovin and Zillow Group. The Motley Fool recommends Opendoor Technologies and Redfin and recommends the following options: short February 2025 $10 calls on Redfin. The Motley Fool has a disclosure policy.