4 Nasdaq 100 Stocks That Can Turn $300,000 Into $1 Million By 2029

It’s been quite a year for the investor community. You witnessed that S&P500, the worst first half-year return since 1970, weathered two consecutive quarters of contraction in US GDP and is navigating the most inflationary environment in four decades. It’s no wonder the S&P 500 and are tech-centric Nasdaq Composite fell firmly into bear market territory.

But when there’s danger on Wall Street, there’s always opportunity. That’s because every double-digit percentage downtrend in the major indices has at some point been cleared away by a bull market. For patient investors with an eye for innovation, this is the perfect time to start looking for growth stocks. And where better to find this growth potential than the Nasdaq 100?

Image source: Getty Images.

The Nasdaq 100 consists of the 100 largest non-financial stocks listed on the stock exchange Nasdaq Exchange. It’s also packed with many of the companies that have propelled Wall Street up over the past five years. What follows are four Nasdaq 100 stocks that have the innovation power to turn $300,000 into $1 million by 2029.

Amazon

The first top-tier innovator on the Nasdaq 100, capable of a 233% return over the next seven years, is an e-commerce behemoth Amazon (AMZN -2.86%). While some people might be skeptical about a $1.45 trillion company that has more than tripled in value in seven years, it all boils down to Amazon’s impressive operating cash flow growth.

It’s no secret that Amazon is best known for its leading online marketplace. This year, Amazon is expected to generate about 40% of all online retail sales in the U.S., which is more than eight percentage points more than the share of its 14 closest competitors combined. But while online retail generates a lot of revenue for Amazon, it’s a generally low-margin business segment. The real draw for this company will come from its subscription services and cloud infrastructure.

For example, Amazon was able to use its online success to enroll more than 200 million Prime members worldwide by April 2021. Based on the $139 annual fee for Prime (the cheapest renewal option), Amazon is raking in at least $28 billion in high-margin revenue that it can use to support its rapidly growing logistics network or fuel other innovative projects.

There’s also Amazon Web Services (AWS), which Canalys estimates accounted for 33% of global cloud services spending in the first quarter of 2022. Cloud growth is still in the very early innings, which should allow AWS to sustain a 25%+ annual revenue growth rate. Additionally, AWS generates the majority of the company’s operating cash flow, although it accounts for between 15% and 16% of Amazon’s net sales. AWS could realistically help quadruple or quintuple Amazon’s cash flow by 2029.

Airbnb

A second phenomenal Nasdaq 100 stock with the capacity to turn $300,000 into a cool $1 million over the next seven years is the stay-and-hosting platform Airbnb (ABNB -5.37%). While Airbnb isn’t cheap, it has a plan of action that’s revolutionizing the $8 trillion travel industry.

While the COVID-19 pandemic briefly shattered Airbnb’s hosting platform, bookings have returned with a vengeance. In each of the last two quarters, the company has reported a combined total of more than 100 million room nights and experiences booked. Since 2016, the total number of overnight stays/experiences booked has risen from around 52 million to an estimated well over 400 million in 2022. Not even historically high inflation can quell consumers’ and businesspeople’s desire to travel.

Additionally, the pandemic has created a hybrid work environment, with some employees no longer tied to a single location. With Airbnb’s marketplace still relatively small and millions of new hosts likely to join in the coming years, these remote workers are powering Airbnb with longer stays of 28 days or more.

But the most exciting long-term driver might be Airbnb’s ability to partner with food, transportation/travel, and entertainment companies. While it’s already working with local experts to bring travelers to experiences, this represents the tip of the iceberg for a bigger slice of the $8 trillion travel industry pie.

Person on couch looking at smartphone with open laptop on lap.

Image source: Getty Images.

PayPal Stocks

A third high-growth Nasdaq 100 stock with the tools to turn $300,000 into $1 million by 2029 is the fintech giant PayPal Stocks (PYPL -3.31%).

The telltale sign that PayPal is on its way to becoming one of the largest companies in the world can be seen in its operating results for the first six months of the year. Even as historically high inflation disproportionately weighs on the bottom earners, PayPal has delivered low double-digit percentage growth in total payment volume (TPV) across its network on a constant currency basis. If the US economy is in a “technical recession” and digital payments growth continues into double digits, imagine how strong PayPal’s TPV growth can be during the much longer periods when the US economy is expanding.

As a PayPal shareholder, it’s arguably even more impressive how effective the company has been at keeping users engaged. At the end of 2020, the average active account completed just under 41 transactions per 12 months. By the end of June 2022, the average active account was almost 49 transactions per 12 months. PayPal is primarily a fee-based platform, which means increased engagement is an easy path to higher gross profit.

PayPal also continues to grow inorganically. The company acquired Japan’s Buy Now, Pay Later (BNPL) service Paidy in 2021 and could reasonably add more BNPL support or perhaps an e-commerce service to boost its already impressive growth potential.

meta platforms

The fourth and final Nasdaq 100 stock that can turn $300,000 into $1 million by 2029 is another FAANG stock. meta platforms (META -3.84%). Meta is the company formerly known as Facebook.

While Meta is grappling with the same near-term concerns that weigh on most growth stocks, investors seem to be overlooking just how valuable the company’s advertising-driven assets remain. Facebook, WhatsApp, Instagram and Facebook Messenger, all owned by Meta, have always been among the most downloaded apps in the world. In fact, more than half of the world’s adult population visited a Meta property in the last quarter. This explains why meta mostly enjoys such impressive power in ad pricing.

But what makes Meta such a positive Joker is its generous investments in the metaverse. The “Metaverse” is the next iteration of the Internet, allowing connected users to interact with each other and their surroundings in a 3D virtual world. While no one is quite sure what the metaverse will entail, Facebook aspires to be a key gateway to this potentially $30 trillion opportunity.

The icing on the cake for meta is that it’s historically cheap. Shares can be bought for less than 16 times Wall Street’s forecast earnings for 2023, although Meta retains all of its competitive advantages and is likely to see a sustained double-digit growth rate during periods of economic recovery.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Sean Williams has positions at Amazon, Meta Platforms, Inc. and PayPal Holdings. The Motley Fool has positions in and recommends Airbnb, Inc., Amazon, Meta Platforms, Inc., and PayPal Holdings. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.

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