Growth stocks have been dominating the 21 century. Facebook (NASDAQ:META), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL) and Starbucks (NASDAQ:SBUX) are just some companies that have seen huge percentage gains.
According to NASDAQ, a growth stock is any share in a company that is expected to grow at a rate significantly higher than the average growth for the market.
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Their share prices, revenue or profits flow at faster rates than the market, meaning some investors choose growth stocks to earn profits from the rapid price appreciation they offer, rather than income from dividends (although this can equally go the other way and result in losses).
