After a year like no other, the holiday season is upon us. The combination of rising interest rates, high inflation, and the bear market no doubt has some shareholders thinking "bah, humbug."

Seasoned investors, however, are filled with the joy of the season, remembering that the downturn in stock prices has resulted in some amazing holiday deals. Many are busy putting pen to paper and making holiday wish lists of their favorite high-growth stocks selling at bargain basement prices.

Here's a list of three stocks that investors should consider as stocking stuffers this year.

A person carrying presents while looking at a smartphone and credit card.

Image source: Getty Images.


The first remarkable growth stock investors should put in their stocking in 2022 is Alphabet (GOOGL -1.23%) (GOOG -1.10%). The tech giant boasts several industry-leading businesses, including internet search engine Google, cloud computing platform Google Cloud, and streaming video platform YouTube. Businesses have been reining in spending and advertising revenue has taken a hit, but Alphabet's competitive advantages should put the stock at the top of your gift list.

The foundation for Alphabet's success is the company's dominant internet search. Google commands roughly 92% of the worldwide search engine market, and its share hasn't wavered much in years. The company's near-monopoly in search underpins its digital advertising business -- another industry it dominates -- controlling 29% of global digital ad spending last year. 

Google was quick to recognize the vast potential of YouTube's short-form videos, and its foresight has been amply rewarded. YouTube is the No. 1 video streaming platform worldwide, with about 2.6 billion viewers visiting the platform every month, according to Global Media Insight. Alphabet is always on the hunt for ways to boost that revenue, so YouTube should continue to be a long-term winner.

Then there's Google Cloud, which is the third-largest cloud infrastructure provider, with 9% of the worldwide market according to Canalys. The digital transformation has only just begun to take shape, so Google is well positioned to expand its share in this lucrative market for many years to come.

Finally, at less than 4 times next year's sales, Alphabet stock hasn't been this cheap in nearly a decade.  


The second jaw-dropping growth stock that should be at the top of every investor's holiday shopping list is Toast (TOST -2.57%). While it isn't a household name like Alphabet, Toast is quickly becoming an indispensable technology provider to the restaurant industry. Most eateries suffer with a hodgepodge of hardware and software systems to take orders, process payments, schedule staff, process digital food orders and deliveries, and order inventory. Toast does all that and more, with a cloud-based, software-as-a-service (SaaS) platform that consolidates these tasks in one place using a single, integrated system.

Restaurant owners and managers get improved efficiency and lower turnover. Customers get improved service, which results in increased sales and higher tips for employees -- which is truly a win-win-win. 

In just 15 short months since its IPO, Toast has made a splash, moving quickly to consolidate a fragmented industry, yet still serves less than 9% of the roughly 860,000 restaurant locations in the U.S., providing a long runway for growth. 

For the first nine months of 2022, Toast's revenue grew 65% year over year and is on track to surpass $1 billion in annual recurring revenue over the next few quarters. Management recently raised its outlook, noting it hadn't seen any pullback in demand. The company is also expected to reach profitability in 2023, well ahead of schedule. 

Co-founders Stephen Fredette, Jonathan Grimm, and Aman Narang are all still at the helm, currently serving as president, chief technology officer, and chief operating officer, respectively -- and are heavily invested in Toast's success. The trio own 86 million shares of Toast stock (and 25% of the voting control), a combined stake valued at $1.54 billion. Investors should take heart that the founders have a vested interest in the company's success.

Finally, at just over 2 times next year's sales, Toast is selling for a song, particularly considering the significant opportunity that remains.

Sea Limited

The third and final stunning growth stock for your stocking is Sea Limited (SE -2.20%). Despite mounting losses over the past couple of years, this was in service of expanding its ecosystem of three interconnected businesses with room to run over the long term.

Garena, the company's digital entertainment segment, is driven by its blockbuster mobile videogame Free Fire. While adoption of the game has slowed from its lockdown-induced growth spurt, it remains one of the most downloaded mobile games in the world, fueling Sea Limited's other business segments. 

Shopee, the company's e-commerce segment, continues to generate enviable growth that is outpacing the industry, with third-quarter revenue of $1.9 billion, up 32%, or 39% in constant currency. This was driven by gross merchandise volume (GMV) of $19.1 billion, up 14%, but even that doesn't tell the whole story. Core marketplace revenue grew 54%, while value-added services increased 20%. This seems to dispel the rumor that e-commerce is dead. 

Sea Limited's smallest, but perhaps most promising, segment is Sea Money, its fintech business. Revenue of $327 million grew 147% year over year, fueled by its mobile wallet and credit businesses. 

Management has recently been laser-focused on profitability, making great strides, as evidenced by a 45% quarter-over-quarter improvement in adjusted EBITDA, excluding one-time charges. 

This ecosystem of businesses should continue to grow for some time to come. Furthermore, the stock is selling at just 2 times next year's sales, the cheapest price-to-sales ratio in Sea Limited's history.