7 Growth Stocks Prepared for a Summer Surge

In terms of market volatility, this year is definitely one for the books. 2020 saw market movements that would normally take decades, compressed into a single year. With unemployment rates at their highest and businesses facing the risk of bankruptcy, the economy hit some new lows this year. However, a period of downturn also presents a unique opportunity for investors to load up on growth stocks to buy at a discounted price.Historically speaking, a bear market in the S&P 500 was always replaced by a bull market rally in the years before Covid-19.While it's hard to remain optimistic in uncertain times, investors need to take a long-term approach when investing in stocks. Some companies are likely to emerge from the pandemic as losers. Others will come out of this stronger than ever.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere are seven growth stocks that are a great addition to your portfolio for the long-haul: * 10 Cybersecurity Stocks We Need Now More Than Ever * Tesla (NASDAQ:TSLA) * Snap (NYSE:SNAP) * Microsoft (NASDAQ:MSFT) * Lemonade (NYSE:LMND) * Shopify (NYSE:SHOP) * Square (NYSE:SQ) * Amazon (NASDAQ:AMZN) Growth Stocks to Buy: Tesla (TSLA)Source: Shutterstock One of the obvious growth stocks to buy putting up some big numbers this year is Tesla. The company's success can be largely attributed to its visionary CEO, Elon Musk, who was able to turn the pandemic into a period of growth for the company.At the onset of the pandemic, Tesla was forced to shut down its operations, resulting in a slow spring for the company. But things took a turn for the better when the electric vehicle giant was able to deliver a surprising number of cars by the end of June. The rise in production levels restored investor confidence in the company. Its stock price has only continued to rise since then.Tesla's production capabilities were bolstered by the company's plant in Shanghai, which allowed them to expand their market to China in a period of downturn in the U.S. Labor costs in China are also significantly lower than the company's plant in Fremont, California.After a string of positive achievements in the second half of 2020, Tesla stock is currently trending at the $1,500 area. Its market value currently is worth almost $300 billion and the company is set to take over Toyota (NYSE:TM) as the world's most valuable automaker.As Tesla continues to reinvent itself in the competitive world of electric vehicles, this growth stock is definitely worth the investment. Snap (SNAP)Source: dennizn / Shutterstock.com Prior to the pandemic, Snap stock lost its momentum as people flocked to Facebook (NASDAQ:FB)-owned Instagram to stay connected. However, Facebook has been riddled with issues concerning 'fake news' this past year and people are growing increasingly wary of the social media platform.Snap stock gained some major momentum this year and the company put up some surprising Q2 numbers last week. Although net revenue was down, Snap did see an unprecedented increase in its advertising revenue that materialized as a direct result of the pandemic. Moreover, as Facebook loses its allure, its customers decided to spend their advertising dollars elsewhere -- aka on Snap.Traditionally a photo-taking app, Snap strived to diversify its business model this past year in order to stay relevant. More recently, the company announced that it is looking to integrate third-party apps and add performance enhancements on the platform. This will include a voice command tool and easier app navigation.Snap's rebound is also shaped by the fall of the Chinese social media platform TikTok. This comes after the app's data collection methods increased the risk of cyber-attacks which posed a national security threat. When news of the potential ban on the app was announced by Sec. of State Mike Pompeo, Snap stock closed 6% higher on the same day. * 7 Micro-Cap Stocks You May Want to Take a Chance On Snap is one of the growth stocks to buy worth placing your bets on. The company said that Q3 revenue was already up 32% from the previous year. App usage increased by 4% since the lockdown. Snap's founder Evan Spiegel believes that "the fundamentals of the business are strong," and so do we. Microsoft (MSFT)Source: NYCStock / Shutterstock.com Tech stocks have been leading the market gains during the pandemic. One company that is a strong player in many investors' portfolios is Microsoft. The company secured some incredible margins this year thanks to its operating systems and cloud applications.With most people working from home since spring, Microsoft saw a boost in its cloud application usage. Azure revenue increased by 61%, while Microsoft Office had a double-digit growth year. This momentum is likely to be bolstered by the X-box gaming console expected to launch this fall.With the remote economy driving 50% of Microsoft's revenue, analysts predict a bright future for the company. Stifel analyst Brad Reback increased the company's price target from $200 to $215. He believes that cloud migration tools will be in demand long after the pandemic. This trend will help Microsoft expand its cloud services to new markets.Microsoft is only one of two AAA-rated stocks in the market and has a solid cash flow to keep it at the top of its game in the coming years. As the tech giant continues to generate juicy margins, this is one of the growth stocks to buy that is definitely worth holding on to. Lemonade (LMND)Source: Piotr Swat / Shutterstock.com Insurance company Lemonade is fresh off its IPO and is well-poised for tech-fueled growth. The company went public on July 2 at $29 per share and saw its price soar by 144%. It is currently trending around $83.While there is no shortage of insurance providers, Lemonade considers itself an industry-disruptor and seeks to provide a "cocktail of delightful experiences." Unlike traditional insurance companies, Lemonade is tapping into the subscription-based business model that has been a tailwind for major tech companies. This fee-like revenue approach will give the company a steady income stream while making them less liable for claims.Lemonade also hopes to make insurance more appealing to a younger generation with its easy-to-use digital interface powered by artificial intelligence. The app will provide a more customer-centric approach to investing and make the tedious process of finding an insurance provider more streamlined. * The 7 Best Cheap Stocks Under $10 Right Now Although Lemonade has an enviable stock price, the company still remains unprofitable and reported a net loss of $36.5 million in its first quarter. However, its novel take on the insurance sector shows a lot of upside potential in the long-term. We recommend you put your money in this high growth stock. Shopify (SHOP)Source: justplay1412 / Shutterstock.com The pandemic was a final blow for brick and mortar businesses (both big and small). As companies were forced to re-think their business approach during a period of uncertainty, many found a home on Shopify's platform.The e-commerce platform served as a lifeboat for over one million businesses as consumers took to online shopping to stock up on essentials. With a growing digital footprint and partnerships with high-profile companies like Walmart (NYSE:WMT) and Facebook, the company's sales growth increased by 47% this past year.The pandemic pushed e-commerce to the forefront of the retail industry, making Shopify one of the hottest tech stocks. The tech platform's stock price surpassed giants like Netflix and Zoom as well. This earned Shopify its title as Canada's most valuable company as it hopes to keep the momentum of online shopping going long after the pandemic recedes.Shopify recently joined the $1,000 per share club. Even with a lofty valuation, the e-commerce platform only continues to grow. As of July, the platform has 1.3 million businesses, adding 200,000 more than they had in January.According to Yahoo Finance, the company's sales are expected to increase by 37% in 2020, followed by 34% in 2021. While this is not as high as its growth rate this past quarter, Shopify's versatile business model makes it a powerful player in the online retail space.Hold on to Shopify. It's one of the most promising growth stocks to buy as the world moves toward a digital-first environment. Square (SQ)Source: IgorGolovniov / Shutterstock.com As lockdown restrictions and store closures became the norm, consumers flocked to digital payment apps to make purchases online. Square, a pioneer in the touch-free payments space, has seen its stock surge in the past few months to hit a record high at the market close on July 6.While its merchant business was impacted by Covid-19, the company's subsidiary, Cash App, is its success story. The app lets people transfer money, invest in bitcoin, redeem rewards, and even receive stimulus checks during the pandemic. This increased activity on Cash App since the start of the pandemic and tripled Square's stock price since its low in March.The pandemic has been a boon for the financial payment ecosystem and companies like PayPal (NASDAQ:PYPL) and Square are in their heyday. Many believe Cash App's user-centric design appeals to a wider demographic and is a great alternative to the traditional banking system. The digital payment trend induced by the pandemic has laid the groundwork for apps like Cash App to grow and evolve. * 10 Cybersecurity Stocks We Need Now More Than Ever Experts believe Cash App's revenue will triple over the next few years. It would be wise to hold on to this growth stock and reap its benefits. Amazon (AMZN)Source: Julie Clopper / Shutterstock.com Tech companies have been the market darlings of the pandemic, but if we were to crown a winner, it would be the e-commerce behemoth Amazon. The onset of the pandemic led to a pantry-loading frenzy and Amazon was at the forefront of this e-commerce boost. With control of over 44% of the online market, the growth in online sales led the stock price to new highs.In 2020, Amazon stock surged 73%, which came as a result of changing consumer habits during the pandemic. But the company, known for its disruptive behavior, did not sit on its accomplishments but used the online boom as an opportunity to diversify its business model.The tech giant is investing heavily in Amazon Web Services (AWS), the cloud computing arm of the business. The company hopes to secure global contracts in this space which could lead to potential revenue in billions in the coming years.This is alongside Amazon's other ventures such as the acquisition of Zoox, which will help streamline its delivery service with driverless cars, along with a $2 billion investment in clean energy to reduce the impact of climate change. This investment comes after the tech giant was criticized for its large carbon footprint.Amazon's diversified business model opens up more streams of income for this powerful tech company. This growth stock is already a favorite among investors, although some analysts remain wary of its elevated valuation. Nevertheless, Amazon stock does provide buyers with long-term sustainable growth.Divya Premkumar has a finance degree from the University of Houston, Texas. She is a financial writer and analyst who has written stories on various financial topics from investing to personal finance. Divya has been writing for InvestorPlace since 2020. As of this writing, Divya Premkumar did not own any of the aforementioned stocks. 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