Growth stock (Wachstumsaktie)
A share in a company whose revenue and profit are expected to grow fast.
In short
As of 8 October 2026A growth stock belongs to a company whose revenue and profit are expected to grow especially fast. Investors pay high valuations for it, such as a high P/E or P/S ratio, and many of these firms pay no dividend. If the expected growth does not come, the price can fall sharply, so growth stocks usually fluctuate more than value stocks.
Growth stocks belong to companies that increase their revenue especially quickly. Investors pay a high price for that: P/E and P/S ratio are often far above the market average. Many growth companies pay no dividend and reinvest the money instead.
The risk: the high price assumes the growth continues. If results disappoint, the share price can collapse. Growth stocks therefore usually fluctuate more. Many are listed on the Nasdaq.
Example: Nvidia is a well-known growth stock. If revenue grows 50 % a year, a P/E of 40 can be reasonable. If growth slows to 10 %, the same valuation suddenly looks expensive.
As of 8 October 2026 · Educational content, not investment or tax advice.