Got $1,000? 2 Top Growth Stocks to Buy That Could Double Your Money

A popular way to invest consists of putting money in companies that are posting sizable revenue and profit gains. Owning these businesses for the long term can result in impressive portfolio returns. Of course, investors have to first identify the right opportunities.

Luckily, there are two dominant companies that present good buying opportunities today. Investors who have $1,000 ready to put to work can buy one share of each. Here are two top growth stocks to buy that could double your money over the next five years.

Image source: Alphabet.

Alphabet and Meta are leading internet enterprises

The two stocks that investors should buy that can double their money are Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META). These two businesses have dominated in the internet age. And they will continue to do so for the foreseeable future.

Both companies benefit from powerful network effects. Alphabet's Google Search and YouTube, for example, get better as they collect more data, improve their capabilities, and grow their user bases. Meta's various social media apps, like Facebook and Instagram, operate the same way. And it's hard to outcompete a social media platform that has the most users. This setup makes it incredibly difficult to disrupt these two businesses.

Artificial intelligence (AI) is opening up new opportunities for Alphabet. The fears about Google Search becoming obsolete look overblown today. Google Search posted 12% revenue growth in the second quarter. Its AI Mode feature has 100 million monthly active users in India and the U.S. And the leadership team says that AI Overviews are monetizing at the same rate as regular queries. All of these are positive signs.

Alphabet is also involved in AI-related research, putting it at the cutting edge of new developments happening in the space. Its Google Cloud Platform is a mission-critical IT provider for customers looking to leverage AI capabilities. And Alphabet's Gemini LLMs are already integrated into its vast array of products and services, improving the user experience.

Meta isn't sitting around idly, either. Founder and CEO Mark Zuckerberg went on a spending spree recently, trying to position his business at the forefront of the AI race. Meta's goal is to use this technology to better serve its user base of 3.5 billion people. What's more, Meta also wants to bolster the capabilities of its advertising customers by leveraging AI to help them become more creative and more effective.

Zuckerberg believes that AI will support digital advertising becoming a greater share of global gross domestic product (GDP) over time. If this becomes a reality, it will provide a major tailwind for both Alphabet and Meta, which generate robust advertising revenue. That will help drive sustainable growth.

This also provides the necessary backdrop for these companies to increase their earnings per share. It wouldn't be a surprise to see Alphabet and Meta grow the bottom lines at double-digit rates on an annualized basis in the years ahead. This can be true even though the gains will come down from previous years.

It's smart to buy stocks at reasonable valuations

Earnings growth provides a necessary ingredient for stock prices to rise. Another key factor that can't be ignored is valuation. Pay too high of a price, and forward returns could disappoint. That's why it's best to buy shares when they trade at reasonable valuations.

Alphabet and Meta fit the bill here. The former trades at a price-to-earnings (P/E) ratio of 27, while the latter can be purchased at a P/E multiple of 26. This makes them the cheapest stocks of all of the "Magnificent Seven," while arguably being two of the highest-quality companies of that group.

Investors who use $1,000 to buy one share in each of these companies are in a good position to see that value double.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Meta Platforms. The Motley Fool has a disclosure policy.