Major breakthroughs in technology tend to be launchpads for economic prosperity. Consider the impact of the personal computer, the internet, and the smartphone. In each case, these innovations transformed the world, and they created a significant amount of wealth in the process.

That's what makes the tech sector so appealing. A small investment in an innovative young company could grow tenfold or more, supercharging a portfolio. With that in mind, Joby Aviation (NYSE:JOBY) aims to disrupt urban mobility, and Teladoc Health (NYSE:TDOC) is digitizing healthcare. Both have the potential to bring significant changes to the markets they operate in.

Here's why these two growth stocks should be on your radar.

Joby electric vertical takeoff and landing aircraft backed by a rising sun.

Image source: Joby Aviation.

1. Joby Aviation

Joby is a first mover in the emerging urban air mobility (UAM) market. The company manufactures electric vertical takeoff and landing (eVTOL) aircraft, and it plans to launch an app-based aerial ridesharing service in 2024. This service would carry passengers between 5 miles and 150 miles, cutting commute times by a factor of five.

Despite the nascent stage of the industry, Joby has already established a strong competitive position. The company is further along in the certification process than any rival, and Joby believes it will be the first commercial eVTOL ridesharing service to hit the market.

More importantly, the company's first-mover's status lays the foundation for a virtuous cycle. As more passengers join the Joby network, unit economics will improve, spreading the cost of each aircraft over a greater number of trips. This will allow the company to invest in new infrastructure (skyports and aircraft, for instance), making Joby's ridesharing service more accessible, which should bring new passengers into the fold. As a result, management believes customers will pay just $3 per mile by 2026.

However, Joby's vision of an aerial ridesharing service is far from certain. The company doesn't currently generate revenue, and it still needs to earn the necessary certifications from the Federal Aviation Administration before commercializing its business, a process that is expected to continue through at least 2023.

Here's the bottom line: Joby is a highly speculative investment at this point, but the idea of straight-line air travel is likely appealing to many consumers, especially those that frequently find themselves stuck in traffic. Booz Allen Hamilton analysts believe the U.S. UAM market will reach $500 billion in the years ahead. That's why investors should keep this growth stock on their radar.

Physician consulting with a patient using Teladoc's virtual platform.

Image source: Getty Images.

2. Teladoc Health

Teladoc is disrupting the healthcare industry. Its platform allows patients to engage with clinicians from the comfort of their homes, offering services that range from general wellness to chronic care. In fact, Teladoc has built a provider network that spans 50,000 medical professionals and over 450 specialties, including cancer, heart disease, and diabetes.

The benefits here are twofold: Patients win because they can visit physicians virtually, which is far more convenient than making a trek to the clinic. And clients (e.g. health insurance companies and employers) win because Teladoc makes healthcare more affordable. In 2016, a study comprising nearly 2 million patients found that Teladoc clients save $472 per general medical visit. And the Livongo diabetes program cuts costs by $1,900 per participant each year.

Not surprisingly, that value proposition has translated into strong growth, though the pandemic certainly played a role in supercharging Teladoc's financial performance.

Metric

Q2 2018 (TTM)

Q2 2021 (TTM)

CAGR

Paid memberships

22.5 million

52.0 million

32%

Revenue

$330.0 million

$1.6 billion

70%

Source: Teladoc SEC filings, Ycharts. TTM = trailing-12-months. CAGR = compound annual growth rate.

As a caveat, management is guiding for 52 million to 54 million paid memberships by the end of 2021, which represents very little change compared to the 51.8 million members at the end of 2020. However, after a year of pandemic-driven hyper-growth, I'm not too worried about this deceleration.

On the bright side, member utilization is increasing. During the most recent quarter, this metric hit 21.5%, up from 16% in the prior year. This means more paid members are actually using Teladoc, demonstrating its value. Looking ahead, management thinks total visits will reach 13.5 million to 14 million in 2021, up 27% to 32% year over year.

Here's the bottom line: Yes, membership growth has slowed quite a bit. But telemedicine is more convenient and often more cost-effective than traditional healthcare, and Teladoc offers a more comprehensive virtual solution than any of its rivals. That's why this growth stock should be on your radar.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.