2 Growth Stocks to Invest $1,000 in Right Now

Shopify and On Holding are highlighted for their strong growth and strategic market positioning. Shopify, an e-commerce platform, reported a 23% increase in Q1 2025 Gross Merchandise Volume (GMV) to $75 billion, outpacing Amazon's e-commerce sales growth, driven by its expanded full-suite omnichannel services attracting large enterprise clients. Concurrently, luxury athletic brand On Holding achieved 40% year-over-year sales growth in Q1 and expanded gross margins to 59.9%, benefiting from its premium pricing strategy and affluent customer base's resilience to macroeconomic headwinds. Both firms command high valuations, reflecting their robust growth trajectories and perceived long-term potential in their respective markets.

Analysis

The current market exhibits a bullish sentiment, driven by moderating inflation and anticipated interest rate cuts, with the S&P 500 and Nasdaq-100 up 8% and 10% year-to-date, respectively. Within this environment, Shopify (SHOP) and On Holding (ONON) are highlighted as strong growth plays. Both companies demonstrate robust financial performance and strategic positioning in their respective markets.

Shopify's Q1 2025 Gross Merchandise Volume (GMV) surged 23% year-over-year to $75 billion, significantly outpacing Amazon's e-commerce sales growth of 5-6%. This growth is fueled by its evolution into a comprehensive omnichannel platform, attracting larger enterprise clients with services spanning order management, payments, and marketing. Despite a 20% year-to-date stock increase and high valuations (forward P/E of 71, P/S of 18), investors are assigning a premium based on its expanding market share and potential.

On Holding, a luxury athletic apparel company, reported a 40% year-over-year sales increase in Q1 on a currency-neutral basis, with gross margins expanding to 59.9%. Its premium pricing strategy and focus on affluent customers provide resilience against macroeconomic headwinds, differentiating it from competitors. With a trailing 12-month revenue of $2.8 billion, ONON is growing faster than major players in the sector. Its valuation (forward P/E of 33, P/S of 12) is considered well-priced given its strong performance and growth trajectory.

Key Decisions for Investors

• Investors should evaluate Shopify's high valuation multiples (P/E 71, P/S 18) against its strong GMV growth and expanding enterprise market penetration, considering it a long-term growth play despite current premiums.
• Consider On Holding for exposure to the resilient luxury athletic wear segment, noting its superior sales growth (40% YoY) and expanding gross margins (59.9%) compared to industry peers.
• Monitor macroeconomic indicators, particularly inflation and interest rate trends, as the current bullish market sentiment is a key driver for investor enthusiasm in high-growth companies like SHOP and ONON.