3 Stocks That Could Turn $1,000 into $5,000 by 2030

Investing in the right growth stocks can help you accelerate your wealth accumulation and bring you many steps closer to the retirement of your dreams. As businesses increase their profits and cash flow, their stock prices should rise in tandem, giving you valuable capital gains and increasing the value of your investment portfolio. The key is to be patient and have a long-term perspective so that your stocks can reach their full potential.

The best types of growth stocks are those with a dominant business model and a history of growth over many years. These businesses have the potential to become multibaggers, that is, stocks that increase in value many times over. Other key characteristics include a strong management team capable of growing its business to keep pace with the latest trends, as well as the ability to navigate long-term tailwinds.

Here are three stocks that could grow $1,000 fivefold or more in six years.

1. Buy

Shopify (SHOP -0.62%) operates a platform that provides entrepreneurs and small business owners with the tools and knowledge to sell their products and services. The business has done well to grow its earnings and free cash flow over time.

Revenue started at S$4.6 billion in 2021 and increased to S$7.1 billion by 2023. Shopify’s free cash flow grew nearly 87%, rising from $485 million to $905 million over the same period. The better result was due to more people wanting to start home-based businesses due to the pandemic.

Based on Shopify’s latest earnings for the third quarter of 2024, the e-commerce company is going from strength to strength. Gross value of goods passing through its platform increased 24% year over year to $69.7 billion, and gross value of payments jumped 31% year over year to $43 billion. Monthly recurring revenue for the quarter increased from $137 million to $175 million dollars.

These strong operating statistics were also reflected in the company’s financial performance, with revenue for the quarter up 26% year over year to $2.2 billion and free cash flow up nearly 53% to $421 million.

Shopify appears to continue to do well. The company has become Robloxfirst commerce integration partner and expanded its partnership with PayPal. Its international expansion is also picking up pace, with the number of international stockists such as The Body Shop and Watches of Switzerland increasing by 36% compared to last year. During last year’s Investor Day, Shopify announced that it had just 1% market share of the total addressable market with global revenue of $849 billion. These business initiatives, along with the huge market reach, point to a bright future for the company.

2. Uber

Uber Technologies (UBER 0.68%) operates an application that provides users with a platform for ordering rides and delivering food. The company also provides courier and cargo services. The pandemic and subsequent push for digitalization has seen demand for Uber’s services soar as more people go online to use its services.

The boom has helped the business more than double revenue from $17.5 billion in 2021 to $37.3 billion in 2023. The company went from an adjusted net loss of $3.3 billion in 2021 to an adjusted net income of $73 million in 2023, demonstrating the strong operating leverage it enjoys in tandem with its increased scale. Cash flow also improved significantly over the period, from a free cash outflow of $743 million in 2021 to an inflow of $3.4 billion by 2023.

Uber’s recent Q3 2024 results showed promising operating results. The platform’s monthly active users grew 13% year-on-year to 161 million. Taxi rides rose 17% to 2.9 billion, bringing total bookings to $41 billion, up 16%.

Financial results for the first nine months of 2024 showed continued improvement in profitability and free cash flow. Revenue grew 17% year over year to $32 billion with adjusted net income of $1.7 billion. Free cash flow doubled from $2.6 billion to $5.2 billion.

The platform is still in its infancy as management believes there is still room for significant growth. Higher penetration rates should help boost gross bookings in countries like India and the UK in the mobile services segment. Specific segments such as airports show great potential, with Uber accounting for less than 10% of global airport travel in a $10 billion business.

The company also believes it can grow significantly in major countries such as Spain, Argentina, Japan and Germany, where its name is not yet synonymous with taxis.

The delivery segment will use a membership program to attract customers and increase delivery orders. Uber is working on a grocery and retail product through its app, which could help it expand its scope and categories to reach a wider range of consumers.

These initiatives could fuel years of business growth, and investors can remain confident that Uber can continue to improve its earnings and cash flow.

3. Airbnb

Airbnb (ABNB 2.90%) operates a platform that helps connect accommodation providers with tenants booking short or long term stays. The company has seen healthy growth over the years as more people use its platform to book vacation stays.

With more people using its platform, Airbnb also attracts more housing listings in a virtuous cycle, creating a network effect that makes its ecosystem more valuable. Revenue grew from $6 billion in 2021 to $9.9 billion in 2023, with the company’s net loss of $352 million in 2021 widening to a net profit of $4.8 billion in 2023.

Airbnb has no major capital expenditures, so its free cash flow is in line with its operating cash flow, which increased from $2.3 billion in 2021 to $3.9 billion in 2023.

The company delivered strong results in the first nine months of 2024. Nights and experiences booked grew 8.9% year over year to 380.5 million, and gross booking value increased 11.1% to $64.2 billion.

Revenue grew in tandem with the increase in transactions, up 12% year-on-year to $8.6 billion. Operating income increased 5.4% to $2.1 billion, and pre-tax profit rose 9% to $2.7 billion. Net Profit for the period was skewed by a $2.7 billion tax credit recognized by the entity in the prior corresponding period. Free cash flow continued to improve, increasing from $3.8 billion to $4.1 billion.

Airbnb has taken several initiatives to continue its growth. With over 8 million listings on its platform, the company aims to simplify hosting and attract and retain new hosts.

The platform is also constantly introducing improvements to make the app more personalized, with 50 such updates in the Winter 2024 release alone. Airbnb is also planning to penetrate markets where it has little presence as part of its global expansion strategy.

The company’s initial public offering prospectus lists a total addressable market of $3.4 trillion as of 2019. This number was undoubtedly set to rise further in the years following the pandemic, meaning attractive growth opportunities for the company as it rides the wave of travel and tourism around the world.