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Forget AMC! 3 Growth Stocks That Could Make You Richer

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AMC Entertainment Holdings (NYSE:AMC) is now one of the most popular publicly traded companies in North America. The movie theatre stock gained this status in recent weeks, and many Canadian investors are also eager to get a piece of the pie, considering how popular the stock has become.

Of course, it might pay off to practice a little caution before jumping in head-first. If you have been following meme stocks, Dogecoin, or other such bubbles, you might already be aware that the rally will stop at any time.

Inexplicable growth

AMC stock has exhibited impressive growth but without any fundamentals supporting its rising share prices. The stock could be nothing more than a speculative bet as a newfound get-rich-quick scheme that many retail investors have been taking advantage of recently.

Most AMC investors are not buying shares of the company because they believe in the underlying business. Frankly speaking, they most likely don’t care about the movie theater business. The real reason to buy AMC stock is to sell it in a few days to turn a quick profit.

The business itself continues to suffer during all this hype behind the stock. Buying and holding AMC Entertainment stock might no longer be a wise decision. The company took on a significant debt load with very fine profit margins, which does not look good for its long-term outlook.

The speculative stock might look like an attractive investment to you right now. However, establishing a position in the company at the wrong time could result in devastating losses for your investment capital.

Today I will discuss two alternatives to consider if you are looking for substantial long-term upside for your portfolio.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) stock is a stock in the rapidly growing telehealth industry that has gained significant traction during the pandemic. The company has been around for several decades, but most people learned about its existence during the pandemic-riddled year in 2020 as the stock rallied due to the global health crisis.

The lockdown measures implemented to curb the spread of COVID-19 led to a sudden increase in demand for telehealth services. WELL Health Technologies played a crucial role in enabling the industry.

Industry tailwinds amid the pandemic led to its exemplary growth. The stock has seemingly fallen out of favor in recent weeks, but the dip could only be a small hiccup in its growth story.

Trading for an almost 5% discount from its all-time high, WELL Health Technologies stock could be an ideal growth stock to consider for your portfolio.

Shopify

Shopify (TSX:SHOP)(NYSE:SHOP) stock is an expensive growth stock up by almost 5,100% from its Initial Public Offering just over six years ago. That fact alone highlights what an attractive asset it could be for growth-seeking investors. The company’s performance has consistently beaten expectations year after year. The pandemic created massive industry tailwinds that led to even greater success for the e-commerce enabling company.

Q1 2021 saw Shopify report solid figures. Its sales increased by 110% from Q1 2020, and gross merchandise volume was up by 114% in the same period. The massive migration to e-commerce fueled by pandemic-related restrictions contributed to its growth last year.

Shopify’s recent announcement to drop commissions from the first $1 million in revenues for developers using its platform has already contributed to a sudden surge in its share prices. It could present a better picture for the company’s growth moving forward.

Foolish takeaway

If you are a Canadian investor looking for significant profits to grow your wealth, AMC might look like an attractive bet. However, it is too speculative an asset to consider if you want reliable long-term wealth growth. Shopify stock and WELL Health Technologies stock could be far better alternatives to consider for this purpose.

The two top tech stocks could present you with substantial long-term returns that are reliable and have fundamentals to support the growth.

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.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

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