Three Beginner-Friendly Growth Stocks to Consider
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Alphabet's Market Dominance: Google's parent company, Alphabet, commands a 90% share of global web searches, and its cloud computing division generated $20 billion in revenue last quarter, up 63% year-over-year, indicating strong growth potential in digital storage and productivity solutions.
- MercadoLibre's Growth Potential: As a leading e-commerce player in Latin America, MercadoLibre's revenue surged 49% year-over-year last quarter, and the region's e-commerce market is rapidly expanding, likely to continue attracting investor interest.
- GE Vernova's Strong Backlog: GE Vernova's total business backlog has reached $150 billion, with its power division's backlog at $94 billion, reflecting robust demand in the natural gas turbine sector and expected sustained growth over the next few years.
- Investor Confidence Rebounding: Despite a 280% increase in GE Vernova's stock price since last April, analysts still view the stock as undervalued, with an average price target of $1,248, 20% above its current price, reflecting strong market confidence in its future growth.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 390.130
Low
305.00
Averages
374.25
High
400.00
Current: 390.130
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alphabet's Cloud Revenue Surges 62.7% YoY
- Cloud Market Performance: Alphabet's Google Cloud reported $20 billion in revenue for the latest period, reflecting a remarkable 62.7% year-over-year growth that exceeded expectations, thereby boosting market confidence in Alphabet.
- Optimistic Earnings Outlook: The acceleration in cloud business growth keeps Alphabet's earnings per share outlook bullish, which not only enhances investor confidence in its stock but also has the potential to drive share prices higher.
- Rise of Thematic Investing: Thematic investing has emerged as a crucial way for investors to align with emerging trends, with Alphabet being part of the cloud computing theme, attracting more attention and further solidifying its market position.
- Long-Term Growth Potential: As the cloud computing industry rapidly evolves, Alphabet's cloud services are expected to benefit from increasing market demand, which is projected to drive future revenue and profit growth for the company.
See More
LG Electronics India Seeks $8.71 Billion Valuation in IPO
- IPO Market Surge: LG Electronics India is seeking a valuation of up to 774 billion rupees ($8.71 billion) in its long-delayed IPO, marking one of the largest offerings in India this year, indicating strong demand for new listings in the market.
- Stock Price Surge: Following the announcement of a series of automotive innovations developed in collaboration with Google's technology, LG Electronics' shares surged by 23.95% to 279,500 won, reflecting positive investor sentiment and increased market confidence in the company's future prospects.
- Technological Innovation Edge: LG's new solutions, built on Android automotive operating systems, can control multiple displays with varying aspect ratios simultaneously, significantly reducing costs for automakers deploying multi-display systems, thereby enhancing its competitive position in the market.
- Expansive Market Outlook: The global Android automotive OS market is projected to grow from $895.6 million in 2025 to $2.14 billion by 2035, showcasing LG's strategic positioning in the rapidly expanding automotive technology sector and its potential for future growth.
See More
Meta and Others Settle Student Mental Health Lawsuit for $27 Million
- Settlement Overview: Meta, ByteDance, Snap, and YouTube have agreed to pay approximately $27 million to settle claims from a Kentucky school district, with Meta contributing the largest share of $9 million, reflecting the legal accountability of social media companies regarding mental health issues.
- Lawsuit Background: The Breathitt County School District accused these platforms of designing features that keep young users engaged, leading to anxiety, depression, and self-harm among students, seeking over $60 million to fund programs addressing social media's impact on mental health, highlighting the potential dangers of social media on youth.
- Legal Implications: The settlements do not require companies to admit wrongdoing or modify platform features, yet they may serve as a bellwether for similar lawsuits across the U.S., with over 1,200 school districts filing similar claims, indicating increasing legal pressure on social media.
- Future Outlook: As social media companies face mounting legal scrutiny, particularly with over 3,300 addiction-related lawsuits pending in California, Meta, TikTok, and others may need to reassess their platform designs to address public concerns regarding youth mental health.
See More
Microsoft Reports Strong AI-Driven Revenue Growth
- Stock Price Surge: Microsoft shares closed at $450.24 on Friday, up 5.45%, primarily driven by stronger AI-driven revenue and robust performance in Xbox and software, reflecting market confidence in its future growth.
- Trading Volume Spike: The company's trading volume reached 77.2 million shares, approximately 124% above the three-month average of 34.5 million shares, indicating a significant increase in investor interest that could drive short-term price volatility.
- AI Revenue Milestone: Microsoft's AI business surpassed a $37 billion annual revenue run rate, reinforcing its competitive edge in integrating AI tools with Azure and Microsoft 365, demonstrating effective conversion of AI demand into cloud and software revenue.
- In-House Model Development: Microsoft is developing more in-house AI models to cut costs and enhance flexibility, which not only helps control margin pressure but also potentially strengthens its market position through optimized pricing strategies.
See More
Meta Agrees to Pay $9 Million to Settle School District Lawsuit
- Settlement Amount Revealed: Meta has agreed to pay $9 million to settle claims from the Breathitt County School District in Kentucky, which accused its platforms of fueling a mental health crisis among students, highlighting the potential impact of social media on youth mental health.
- Lawsuit Background: The Breathitt School District sought over $60 million to address the effects of social media on students' mental health and requested a court order for companies to modify their platforms to reduce addictive features, reflecting the immense pressure schools face in managing social media's impact.
- Industry Implications: This settlement marks a significant case among a series of lawsuits against multiple social media companies, including Snap and YouTube, potentially setting a precedent for similar claims from 1,200 other school districts, indicating increasing legal risks for social media firms.
- Future Outlook: Meta has warned investors that legal and regulatory backlash over youth social media issues could significantly impact its business and financial results, underscoring the mounting pressure the company faces in addressing legal challenges.
See More
SpaceX IPO Expected in June with $2 Trillion Valuation
- IPO Valuation Expectations: SpaceX is set to go public in June with a target valuation between $1.75 trillion and $2 trillion, marking an unprecedented event in the stock market that could attract significant investor interest.
- Alphabet's Investment Returns: As of the end of 2025, Alphabet owns about 6% of SpaceX, which could be worth approximately $120 billion if SpaceX reaches a $2 trillion market cap, highlighting the substantial return potential from its $900 million investment in 2015.
- Innovative Liquidity Arrangement: Unlike the traditional 180-day lockup period, SpaceX has established a rolling share-release schedule that allows early investors to gradually sell shares within the first 180 days post-IPO, helping to prevent excess market liquidity and stabilize stock prices.
- Capital Expenditure Needs: Alphabet anticipates a significant increase in capital expenditures for 2027, planning to spend between $180 billion and $190 billion in 2023, which may necessitate raising funds through the sale of SpaceX shares to support its data center expansion and other initiatives.
See More
Alphabet's Cloud Revenue Surges 62.7% YoY
- Cloud Market Performance: Alphabet's Google Cloud reported $20 billion in revenue for the latest period, reflecting a remarkable 62.7% year-over-year growth that exceeded expectations, thereby boosting market confidence in Alphabet.
- Optimistic Earnings Outlook: The acceleration in cloud business growth keeps Alphabet's earnings per share outlook bullish, which not only enhances investor confidence in its stock but also has the potential to drive share prices higher.
- Rise of Thematic Investing: Thematic investing has emerged as a crucial way for investors to align with emerging trends, with Alphabet being part of the cloud computing theme, attracting more attention and further solidifying its market position.
- Long-Term Growth Potential: As the cloud computing industry rapidly evolves, Alphabet's cloud services are expected to benefit from increasing market demand, which is projected to drive future revenue and profit growth for the company.
See More
LG Electronics India Seeks $8.71 Billion Valuation in IPO
- IPO Market Surge: LG Electronics India is seeking a valuation of up to 774 billion rupees ($8.71 billion) in its long-delayed IPO, marking one of the largest offerings in India this year, indicating strong demand for new listings in the market.
- Stock Price Surge: Following the announcement of a series of automotive innovations developed in collaboration with Google's technology, LG Electronics' shares surged by 23.95% to 279,500 won, reflecting positive investor sentiment and increased market confidence in the company's future prospects.
- Technological Innovation Edge: LG's new solutions, built on Android automotive operating systems, can control multiple displays with varying aspect ratios simultaneously, significantly reducing costs for automakers deploying multi-display systems, thereby enhancing its competitive position in the market.
- Expansive Market Outlook: The global Android automotive OS market is projected to grow from $895.6 million in 2025 to $2.14 billion by 2035, showcasing LG's strategic positioning in the rapidly expanding automotive technology sector and its potential for future growth.
See More
Meta and Others Settle Student Mental Health Lawsuit for $27 Million
- Settlement Overview: Meta, ByteDance, Snap, and YouTube have agreed to pay approximately $27 million to settle claims from a Kentucky school district, with Meta contributing the largest share of $9 million, reflecting the legal accountability of social media companies regarding mental health issues.
- Lawsuit Background: The Breathitt County School District accused these platforms of designing features that keep young users engaged, leading to anxiety, depression, and self-harm among students, seeking over $60 million to fund programs addressing social media's impact on mental health, highlighting the potential dangers of social media on youth.
- Legal Implications: The settlements do not require companies to admit wrongdoing or modify platform features, yet they may serve as a bellwether for similar lawsuits across the U.S., with over 1,200 school districts filing similar claims, indicating increasing legal pressure on social media.
- Future Outlook: As social media companies face mounting legal scrutiny, particularly with over 3,300 addiction-related lawsuits pending in California, Meta, TikTok, and others may need to reassess their platform designs to address public concerns regarding youth mental health.
See More
Microsoft Reports Strong AI-Driven Revenue Growth
- Stock Price Surge: Microsoft shares closed at $450.24 on Friday, up 5.45%, primarily driven by stronger AI-driven revenue and robust performance in Xbox and software, reflecting market confidence in its future growth.
- Trading Volume Spike: The company's trading volume reached 77.2 million shares, approximately 124% above the three-month average of 34.5 million shares, indicating a significant increase in investor interest that could drive short-term price volatility.
- AI Revenue Milestone: Microsoft's AI business surpassed a $37 billion annual revenue run rate, reinforcing its competitive edge in integrating AI tools with Azure and Microsoft 365, demonstrating effective conversion of AI demand into cloud and software revenue.
- In-House Model Development: Microsoft is developing more in-house AI models to cut costs and enhance flexibility, which not only helps control margin pressure but also potentially strengthens its market position through optimized pricing strategies.
See More
Meta Agrees to Pay $9 Million to Settle School District Lawsuit
- Settlement Amount Revealed: Meta has agreed to pay $9 million to settle claims from the Breathitt County School District in Kentucky, which accused its platforms of fueling a mental health crisis among students, highlighting the potential impact of social media on youth mental health.
- Lawsuit Background: The Breathitt School District sought over $60 million to address the effects of social media on students' mental health and requested a court order for companies to modify their platforms to reduce addictive features, reflecting the immense pressure schools face in managing social media's impact.
- Industry Implications: This settlement marks a significant case among a series of lawsuits against multiple social media companies, including Snap and YouTube, potentially setting a precedent for similar claims from 1,200 other school districts, indicating increasing legal risks for social media firms.
- Future Outlook: Meta has warned investors that legal and regulatory backlash over youth social media issues could significantly impact its business and financial results, underscoring the mounting pressure the company faces in addressing legal challenges.
See More
SpaceX IPO Expected in June with $2 Trillion Valuation
- IPO Valuation Expectations: SpaceX is set to go public in June with a target valuation between $1.75 trillion and $2 trillion, marking an unprecedented event in the stock market that could attract significant investor interest.
- Alphabet's Investment Returns: As of the end of 2025, Alphabet owns about 6% of SpaceX, which could be worth approximately $120 billion if SpaceX reaches a $2 trillion market cap, highlighting the substantial return potential from its $900 million investment in 2015.
- Innovative Liquidity Arrangement: Unlike the traditional 180-day lockup period, SpaceX has established a rolling share-release schedule that allows early investors to gradually sell shares within the first 180 days post-IPO, helping to prevent excess market liquidity and stabilize stock prices.
- Capital Expenditure Needs: Alphabet anticipates a significant increase in capital expenditures for 2027, planning to spend between $180 billion and $190 billion in 2023, which may necessitate raising funds through the sale of SpaceX shares to support its data center expansion and other initiatives.
See More
