Sushree Mohanty

Wed, Jun 25, 2025, 4:30 AM6 min read

The world of investing involves uncertainty, volatility, and ever-changing macroeconomic conditions. In such scenarios, diversification remains the golden rule.

Investing in a variety of stocks, each with a distinct role in increasing returns, managing risk, and providing stability during volatile market cycles, could be a wise decision. Let’s dig this deeper.

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Growth stocks are shares of companies that are expected to outperform the market in terms of earnings or revenue growth. Instead of paying dividends, these companies typically reinvest profits in expansion, research and development, or acquisitions. These stocks have the capacity to generate higher returns over the long term, as they are often companies with a focus on innovation and market disruption. However, they are also highly volatile and sensitive to economic cycles. Let’s look at two examples.

Valued at $178.3 billion, Uber Technologies (UBER) is more than just a ride-hailing service. With a dominant position in ride-hailing, expanding food delivery services, a growing freight logistics arm, and significant investments in autonomous technology and artificial intelligence (AI), Uber is emerging as a compelling long-term growth stock.

On Wall Street, Uber stock remains a “Strong Buy.” Out of the 49 analysts who cover UBER stock, 34 have rated it a “Strong Buy,” five say it is a “Moderate Buy,” and 10 suggest a “Hold.” Based on the mean target price of $97.43, Uber stock has upside potential of 14.3% compared to current levels.

Plus, the high target price of $115 suggests that the stock could rally as much as 35% over the next 12 months.

Amazon’s (AMZN) empire has expanded to include e-commerce, cloud computing, digital advertising, AI, robotics, and more. Despite being a trillion-dollar company, Amazon still has significant room for expansion. It remains a compelling growth stock due to its unparalleled scale, multiple growth engines, and improved profitability.

Overall, Wall Street rates Amazon stock a “Strong Buy.” Out of the 54 analysts who cover the stock, 46 have given it a “Strong Buy,” while six say it is a “Moderate Buy,” and two suggest a “Hold.” Based on the mean target price of $242.21, Amazon stock has upside potential of 16.1% from current levels. However, the high target price of $305 suggests that the stock could rise more than 46.3% over the next 12 months.