Got $3,000? These 3 Tech Stocks Should Make You a Fortune

Here’s why tech stocks such as Okta (NASDAQ:OKTA) and Lightspeed (TSX:LSPD) can help increase investor wealth significantly over time.

| More on:

If you’d invested $3,000 in tech giant Amazon 10 years ago, it would be worth close to $280,000 today. A similar investment in Netflix back in 2005 would have ballooned to a staggering $900,000 today while Shopify would have returned $102,000 in just over five years.

You need to find one such growth stock that has the potential to accelerate your retirement, secure your future, and change your life forever. This means you need to identify young companies that have the potential to yield significant gains.

These stocks should ideally have easily scalable businesses that will drive explosive top-line growth for several years. Here’s why companies such as Lightspeed (TSX:LSPD),Aritzia (TSX:ATZ), and Okta (NASDAQ:OKTA) are three stocks that can increase your wealth exponentially over the next decade.

A tech stock with significant upside potential

Lightspeed is a company that needs to be on the radar of most growth investors. The Canadian stock fell to $10.5 a share during the market sell-off but has since recovered 300% in just a few months to currently trade at $40.

LSPD’s subscription-based model, expanding product portfolio and stellar revenue growth makes it a top pick for the upcoming decade. LSPD sales in the June quarter rose 50% year over year to $36.2 million. Comparatively, gross transaction volume was up 17% at $5.4 billion.

The company’s recurring revenue sales were up 57% and accounted for 92% of total sales. Its subscription-based model will help Lightspeed through weak economic cycles and ensure a predictable stream of cash flows.

LSPD is forecast to increase sales by 37% in fiscal 2021 to $165 million and by 40% to $231.8 million in 2022.

A fashion boutique

The COVID-19 pandemic has decimated companies in the retail sector and also had a huge impact on Aritzia. The company is a women’s fashion boutique with 96 stores in Canada and the United States. In the quarter ended in May 2020, Aritzia’s sales fell 43.4% to $111.4 million, while adjusted EBITDA loss widened 174% to $25.2 million. Its net loss stood at $0.23 as well.

The last quarter was one of the most challenging times for retail companies. ATZ stock fell to a record low of $9.2 during the bear market in March 2020 before recovering to currently trade at $17.9.

However, despite retail store closures, the company managed to outperform analyst revenue estimates of $108 million and net loss forecasts of $0.25 per share. Aritzia is not a traditional tech company, but it has had to innovate during these uncertain times. The ongoing pandemic has accelerated the shift towards e-commerce, and online sales for Aritzia rose 125% in the May quarter.

Aritzia’s strong leadership ensured that there were no lay-offs, which is a rarity in the retail space this year. This has helped the company ramp up operations once lockdown measures were eased and the company has reopened 89 of its 96 stores.

Aritzia’s strong balance sheet, prime locations, and rising e-commerce sales make it a top retail-tech stock to buy and hold for the long term.

A remote work enabler

Okta stock has gained a massive 750% since its IPO back in 2017. In 2020, the stock is up close to 75% and has easily outperformed the broader markets. Okta is a tech company that provides identity and access management services to enterprises. The company will continue to benefit from the work-from-home trend and has forecast sales growth at 32% in fiscal 2021.

The identity and access management market is forecast at $24 billion giving Okta enough room to grow and add multiple high-dollar customers. In the most recent quarter, Okta added 113 new customers with annual contracts in excess of $100,000. Okta’s net retention rate of 119% also indicates that customers sign up for other services, which reduces the company’s acquisition costs.

Okta’s subscription-based business model coupled with its expanding suite of solutions will help the company widen the customer base and drive revenue growth in 2020 and beyond.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Gardner owns shares of Amazon and Netflix. Tom Gardner owns shares of Netflix, Okta, and Shopify. The Motley Fool owns shares of and recommends Amazon, Netflix, Okta, Shopify, and Shopify. The Motley Fool owns shares of Lightspeed POS Inc and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned.

More on Tech Stocks

stock research, analyze data
Tech Stocks

Apple vs. Shopify: Which Stock Is the Better Buy for the Next 3 Years?

Apple (NASDAQ:AAPL) and Shopify (TSX:SHOP) are great tech titans, but they're ending the year with huge momentum.

Read more »

Investor reading the newspaper
Dividend Stocks

Emerging Investment Trends to Watch for in 2025

Canadians must watch out for and be guided by emerging investment trends to ensure financial success in 2025.

Read more »

nvidia headquarters with grey nvidia sign in front with nvidia logo
Tech Stocks

If You’d Invested $100/Month in Nvidia Starting a Decade Ago, Here’s How Much You’d Have Now

Nvidia has helped long-term investors create generational wealth. But is the tech stock still a good buy right now?

Read more »

chart reflected in eyeglass lenses
Tech Stocks

Is Shopify Stock a Buy, Sell, or Hold for 2025?

Shopify (TSX:SHOP) still looks like a tempting growth stock going into a new year with strength.

Read more »

A shopper makes purchases from an online store.
Tech Stocks

The Smartest Growth Stock to Buy With $1,000 Right Now

Given its solid sales growth, improved profitability, and healthy growth prospects, Shopify would be an excellent buy.

Read more »

Representation of deep learning neural networks and connectivity
Tech Stocks

Opinion: This AI Stock Has a Chance to Turn $1,000 Into $10,000 in 5 Years

If you’re looking for an undervalued Canadian AI stock with huge upside potential, BlackBerry (TSX:BB) should certainly be on your…

Read more »

chip with the letters "AI" on it
Dividend Stocks

The Top Canadian AI Stocks to Buy for 2025

AI stocks are certainly strong companies, and there are steady gainers in Canada as well. But these three are the…

Read more »

dividend growth for passive income
Tech Stocks

The Smartest Growth Stock to Buy With $1,000 Right Now

Assuming you have the risk tolerance, the right crypto stock may be a compelling investment for rapid growth potential.

Read more »