Do you have $3,000? Two growth stocks could double right now.

Growth stocks can be a great asset to your portfolio. This is especially true if you can tolerate the volatility that usually comes with it. For some, the journey may be a bit bumpy, but for investors, patience can be greatly rewarded.

If you have $3,000 to invest (meaning you don’t need it for an emergency fund or paying off high-interest debt), investing your money in these two growth stocks is a good option.

Although these companies have experienced their fair share of ups and downs over the past few years, the long-term outlook looks promising for them and the industry as a whole. Investing $1,500 in each could end up being a big help.

1. DraftKings

DraftKings (D.K.N.G. 0.91%) It is one of the best online sportsbooks in the country. After a slump that saw its value fall nearly 85% from March 2021 to December 2022, DraftKings has seen a much-needed bounce, surging 210% in 2023.

According to Research and Markets, the global sports betting market was valued at $81.7 billion in 2022. It is expected to grow to $231.2 billion in 2032, at a compound annual growth rate (CAGR) of 11.1%. As one of the top companies in the sector, DraftKings stands to benefit from industry-wide growth.

It faces pressure from platforms like FanDuel, Underdog Fantasy and parent new ESPN BET. DisneyHowever, its leading technology and brand awareness should keep it one of the top players in the field.

In the third quarter of 2023, DraftKings generated $790 million in revenue, a 57% increase from the previous year. The company still didn’t make a profit and reported a net loss of $283 million for the quarter, but that was an improvement from $450 million in the year-ago quarter.

Data from YCharts.

Most investors prefer owning profitable companies, but in the case of DraftKings, management’s current focus is on expanding the business, especially in the United States, which is in the process of legalizing sports betting on a state-by-state basis. DraftKings’ aggressive strategy to secure a leading market position early on could lead to strong returns down the road.

As of late 2023, 38 states and the District of Columbia have legalized sports betting to some degree. This makes a quarter of the country a potential new market opportunity, including the two largest states, California and Texas. No one can predict how quickly the remaining states will legalize sports betting (if at all), but there’s still a lot of potential for DraftKings in the industry.

2. CrowdStrike

CrowdStrike Holdings (CRWD 0.74%) It is one of the leading cybersecurity companies in the country. CrowdStrike is credited with pioneering AI-based cybersecurity solutions with its first platform, Falcon, launched in 2011. Like many AI-related stocks, CrowdStrike had a great 2023, surging more than 140%.

Despite its impressive 2023 performance, CrowdStrike is still down more than 14% from its November 2021 high and is a great buy. As businesses increasingly rely on cloud services, the Internet of Things (IoT), and other online technologies, the need for cybersecurity solutions is increasing.

Cybersecurity is like insurance for businesses that operate online. This is a necessary expense to avoid much higher costs if something goes wrong. According to IBMThe average global cost of a data breach in 2023 will be $4.45 million, a 15% increase from just three years ago.

That’s why businesses don’t mind investing money in companies like CrowdStrike to keep their operations secure. Over the past five years, sales have increased by 877%.

Data from YCharts.

As a pioneer in the AI-based cybersecurity industry, CrowdStrike has a data advantage over new entrants in the space. Data is critical to training AI models, so having more years of it is a competitive advantage. Especially considering that CrowdStrike uses over 2 trillion cybersecurity events every day to train its AI models.

Cybersecurity is still relatively early in its growth story. McKinsey estimates that the market opportunity for technology and service providers is worth $1.5 trillion to $2 trillion, of which only about 10% is currently being exploited. This should bode well for leaders in the space like CrowdStrike.