2 Innovative Growth Stocks to Buy Hand Over Fist for the Next 10

Finding the next explosive growth opportunity in the stock market isn’t easy. Some of the most successful companies today were generating enormous losses and looked like unattractive investments before they hit the big time.

Steve Jobs, the late founder of Apple, liked to quote hockey player Wayne Gretzky: “Skate to where the puck is going to be, not to where it has been.” As investors, buying into the tech-driven trends of the future sometimes means buying into a vision, rather than rational metrics like profits in the short term. 

It can be a risky strategy, but that’s the price of high-growth rewards. These two companies use new-age technologies to shape the future, and they are attractive buys for the next decade. 

The case for C3.ai

C3.ai (NYSE:AI) is a first-of-its-kind enterprise artificial intelligence (AI) company, selling customizable AI applications to a very broad portfolio of users. Like most companies blazing a brand-new trail, C3.ai has experienced growing pains in its first year as a publicly-traded company. Amid concerns about slow growth, its stock is down over 70% from its all-time high after making its market debut in Dec. 2020.

But that might spell opportunity for long-term investors as new customers flock to do business with the company, driving an impressive pace of revenue growth.

Data source: C3.ai. Fiscal year ends April 30.

The growth continued in the first quarter of fiscal 2022 as the company added nine more customers for a current total of 98. Management is guiding for full-year revenue of $243 million to $247 million. Revenue growth lags behind customer growth, because it can take up to six months for C3.ai to build an application for a client, so we should see revenue accelerate over the next few quarters.

The quality of C3.ai’s customer base (and collaborations) is where the real value lies. It’s currently working with two of the largest cloud companies on the planet to develop new artificial intelligence solutions for their customers: Alphabet‘s Google Cloud and Microsoft‘s Azure. 

But perhaps the most surprising thing about C3.ai is that 35% of its revenue comes from the oil and gas industry, which is now its largest customer base. In an unlikely partnership, the company developed a suite of AI products with oil giant Baker Hughes to predict critical equipment failures and manage carbon emissions by boosting efficiency.

It’s just one of eight broad industries that have engaged C3.ai, and as AI becomes more widely applicable, the company’s addressable market will only expand. Long-term investors will see their patience pay off, and one Wall Street firm thinks the stock could more than double from here. 

The case for Zillow

Zillow Group (NASDAQ:Z) (