Ever wondered what are growth stocks? Well, in this stock investing for beginners video I explain just that! Companies like Tesla, Amazon, Netflix and Shopify are just some of the growth stocks you’ve heard about. Growth stocks are essentially stocks that witness massive YoY revenue growth and they tend to reinvest it back into the company in order to further grow and improve share price. They tend not to pay dividends as they may not even be profitable at this moment in time, instead, the stock is focused on GROWING and getting ahead of the competition by improving the company and improving its revenues. Investors, therefore, believe the company will eventually become profitable and their shares will see large capital gains/capital accumulation and this is how they will profit from it.
DISCLAIMER: I am not a financial advisor. Nothing in this video is financial or investment advice.
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00:00 Definition and examples
01:00 Where are they found?
01:18 How to profit off them?
01:54 Commonalities within growth stocks
02:51 Recap
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