For generations, the stock market has been helping people invest and increase their wealth. One way you can grow your portfolio is by investing in stocks with high growth potential and a significant market opportunity.

Over the last year, we saw selling across the stock market, with growth stocks getting hit the hardest. While these stocks have recovered in recent months, you can still get into them relatively cheaply. Although these stocks could face more volatility ahead as uncertainty about the economy remains, their long-term growth prospects are stellar. Here's why.

A person is wearing VR goggles.

Image source: Getty Images.

1. Meta is powered by digital advertising but could be a big player in a potential $13 trillion industry

Meta Platforms' (META -0.28%) stock price rode a roller coaster last year, falling to $88 in November, down 77% from its all-time high. The company struggled last year amid reduced advertising demand and marketer spending in a challenging macroeconomic environment. The average price paid per ad was down 16%, ad impressions increased by 18% across its apps, and revenue declined 1% from the previous year.

Meta also faced rising costs during the year due to increased payroll and related expenses because its employee headcount grew by 20%. As a result, its income from operations fell by 38%. This led CEO Mark Zuckerberg to make 2023 a "year of efficiency": The company laid off 11,000 employees last year and has plans to cut another 10,000 jobs in 2023. These cost-cutting measures have made investors optimistic, and they've pushed the stock up 150% since its low point.

Two things make Meta a potentially explosive stock: its position in digital advertising and the metaverse. Meta accounts for 18.4% of all U.S. digital ad spending, according to Insider Intelligence, as reported by The Wall Street Journal. Last year, its family of apps brought in a profit of $42.7 billion. And digital advertising will continue growing. According to eMarketer, ad spending will go from $522.5 billion in 2021 to $835.8 billion by 2026.

The metaverse is another massive opportunity for Meta. This project has been a money-losing campaign for Meta thus far. Reality Labs, the business segment that houses its metaverse initiatives, including its Oculus VR technology, lost $13.7 billion last year.

Analysts have been critical of this endeavor and don't expect it to generate meaningful earnings for years. However, Zuckerberg is taking a long-term approach to the project, which he believes could eventually grow to 1 billion users. A Citigroup report said the total addressable market for the metaverse economy could be between $8 trillion and $13 trillion by 2030 -- a massive opportunity that Meta is investing in today.

2. Shopify is a leader in e-commerce software and cheap relative to recent history

Shopify (SHOP 1.25%) provides tools to small businesses to build e-commerce stores, handle payments, and manage inventory. Its e-commerce software simplifies online stores for vendors, which is why its merchants account for 10% of all e-commerce sales. Only one company has a bigger share of the market: Amazon.

Shopify's stock was volatile last year as investors punished it for the company's rapid expansion, which led to an uptick in expenses that revenue couldn't keep up with. Last year, the company's revenue grew 21%, but operating expenses increased nearly 3 times faster. As a result, the stock lost $3.5 billion one year after posting a $2.9 billion profit.

The stock lost nearly 87% from its all-time high, and even after almost doubling from its lows, it is still down 72%.

However, the stock is an intriguing buy at current levels and could explode higher from here over the next decade because Shopify is a huge player in a growing market. According to eMarketer, e-commerce sales will grow from $5.2 billion in 2021 to $8.1 billion in 2026.

Shopify is enhancing its platform and growing its payment processing service with Shop Pay. This product, which makes it easy for merchants to accept and process payments, was used on only half of its gross merchandise value last year.

Another growth driver is the Shopify Fulfillment Network (SFN), which will simplify logistics by combining freight, distribution, and delivery. The SFN will allow Shopify vendors to deliver products to customers in two days to compete head-to-head with Amazon.

Shopify trades at a bargain compared to its recent history. Its price-to-sales (P/S) ratio of 10.3 is well below its three-year average of 33.2. That, coupled with its opportunity to grow in e-commerce, is why Shopify could be ready to explode higher from here.