The Motley Fool highlights three stocks that could double returns for investors

The Motley Fool has highlighted three stocks that investors should keep an eye on: two large caps and one small cap. It believes that all three have the potential to double investors’ money over the next decade but might appeal more to those willing to take on higher risk.

AppLovin Corporation

AppLovin, with a market capitalization of $117.7 billion, provides a platform for advertisers. The company states that its software and AI solutions help businesses reach, monetize, and grow their audiences.

Over the past four years, AppLovin acquired several of its industry peers, including ad network MoPub and CTV platform Wurl, notes the Motley Fool. However, the company’s growth stalled in 2022 as it posted a net loss of $192.9 million versus a net profit of $35.3 million in 2021. The Motley Fool attributes this decline to the macro headwinds that prompted many businesses to cut their ad spending.

However, the company bounced back a year later. In 2023, AppLovin reported a net profit of $356.7 million and revenue of $3.28 billion, up 17% year over year. According to the Motley Fool, analysts expect its revenue and earnings to grow 40% and 171% in 2024. The company itself projects annual revenue growth of «20% to 30%» in the “foreseeable future,” adds the Motley Fool.

“That rosy outlook might make it a great way to profit from the long-term growth of the mobile app, digital advertising, and AI markets,” concludes the Motley Fool.

Opendoor Technologies

Opendoor, with a $1.2 billion market capitalization, operates in real estate as an iBuyer. It makes instant cash offers for homes, renovates them, and relists them on its own marketplace.

Previously, Zillow and Redfin also had their own iBuying platforms, but both exited the market in 2022 due to rising interest rates, recalls the Motley Fool, adding that Opendoor remains the last major iBuyer standing, though its revenue dropped 55% to $6.9 billion in 2023. The number of homes sold fell 52% to 18,700, as reported by the company. Analysts see another 27% decline in revenue for 2024, according to the Motley Fool.

“That outlook might seem bleak, but Opendoor’s business could warm up again as interest rates decline and the housing market heats up again. That’s why analysts expect its revenue to rise 22% to $6.2 billion in 2025,” says the Motley Fool.

SoFi Technologies

SoFi, with a market capitalization of $16.1 billion, initially focused on providing student loans, as reflected in its name (short for Social Finance).

Over the past decade, SoFi has diversified into mortgages, auto loans, personal loans, credit cards, insurance services, and more, notes the Motley Fool. This expansion was driven by its acquisition of payment platform Galileo in 2020 and the launch of its U.S. digital bank in 2022. As a result, SoFi’s client base has grown more than ninefold over the past five years, surpassing 10 million users, according to the company. 

“SoFi’s digital-only business model enabled it to expand more rapidly and collect data more efficiently than its brick-and-mortar competitors. It ultimately aims to become a ‘one-stop shop’ that replaces other financial apps,” writes the Motley Fool.

While SoFi’s business is sensitive to interest rates, it was also affected by the payment pause on federal student loans from March 2020 to September 2023, notes the Motley Fool. But now the company is expected to regain momentum. Analysts see its revenue growing 17% in 2025.

“Its stock might not seem cheap, but it could have plenty of room to run as it locks more users into its growing web of financial services,” concludes the Motley Fool.