3 Under $50 Growth Stocks Set to Make Early Investors Very Wealthy 

Investing in growth stocks under $50 can be a thrilling yet prudent strategy for those seeking substantial returns. While investors should always distinguish share price from market capitalization, there are cheap stocks that could be potential gold mines. 

Growth stocks are typically characterized by companies that can expand their revenue and earnings per share faster than the broader market. Historically, some of the most successful companies in the world started as small enterprises with share prices under $50. For example, Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) were once considered risky bets with low share prices. Yet early investors have seen remarkable returns in the long term.

While not all growth stocks have the ability to grow to trillion-dollar titans, many of them still hold the potential to outperform. Therefore, identifying and investing in these growth stocks early can lead to substantial wealth creation overtime.

Now, let’s discover the top three growth stocks under $50 set to make early investors very wealthy!

Palantir (PLTR)

Palantir logo on the smartphone and the company share price on the day of opening the trade October 1, 2020. Palantir valued at $15.8bn in stock market debut. PLTR stock

Source: Ascannio / Shutterstock.com

Palantir (NYSE:PLTR), a data analytics software company, has been making waves in artificial intelligence in 2024. The company has made serious strides in the last 12 months, and its financial outlook for this year is extremely strong. 

Palantir’s flagship products, Gotham and Foundry, are widely used for diverse applications ranging from counter-terrorism to financial data analysis. Its close relationship with government agencies, such as the U.S. Department of Defense and other intelligence agencies, has been a huge competitive advantage. While this seems all fine and dandy, Wall Street has heavily criticized its reliance on government contracts. However, that will be a thing of the past as the company’s growing commercial platform continues to gain traction. In Q1 FY24, Palantir achieved its sixth consecutive quarter of GAAP profitability. Additionally, its commercial revenue is currently outpacing its government revenue, with U.S. commercial customer count up 69% from the year prior. With another year of GAAP profitability forecasted for FY24, PLTR stock is among the top growth stocks under $50 to buy in 2024.

GigaCloud Technology (GCT)

Furnished office

Source: Shutterstock

GigaCloud Technology (NASDAQ:GCT) is an emerging e-commerce platform that specializes in providing large scale B2B services. The company focuses on connecting manufacturers and resellers, particularly in the furniture and large parcel industries. 

GigaCloud’s innovative technology platform makes it easier for small and medium-sized enterprises (SMEs) to expand their business globally. It helps streamline the cumbersome sourcing, logistics, and payment processing of international trade. Additionally, the company’s focus on large parcels is a unique competitive advantage as more businesses seek to optimize their operations and reduce costs. GigaCloud has demonstrated extremely impressive growth metrics, especially in the last 12 months. In the 2023 fiscal year, revenue increased 44% year over year to a record $704 million. Net earnings also skyrocketed 294% year over year to $94.1 million, with free cash flow more than doubling to $129.5 million. Growth also accelerated in the first quarter of 2024, driven by strong revenue, earnings and GigaCloud marketplace GMV expansion. With continued momentum across all key financial metrics, GCT stock is one of the best growth stocks under $50 to become extremely wealthy.

Payoneer (PAYO)

Payoneer editorial. Illustrative photo for news about Payoneer - an American financial services company.

Source: photo_gonzo / Shutterstock.com

Payoneer (NASDAQ:PAYO) is an emerging fintech company that specializes in cross-border payment solutions. Its growing revenue and earnings provide early investors with immense potential for substantial returns. 

Payoneer will benefit from increasing globalization of business and the rising demand for efficient cross-border payment solutions. This is especially prevalent for small and medium-sized enterprises (SMEs) who don’t have the large budgets and are more reliant on contract workers. Its platform is primarily used by a diverse range of businesses, including freelancers, online sellers, and digital marketplaces. As the gig economy and freelance work continues to grow, Payoneer is well positioned to capture market share. In the first quarter of 2024, revenue increased 19% year over year to $228.18 million. Net earnings swelled 265% year over year to $29 million, with B2B payment volume up 33% from the year prior. Payoneer’s financial performance over the last several quarters highlights its strong growth trajectory. If you’re on the lookout for growth stocks under $50, PAYO should definitely be a top contender on your list. 

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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