Growth stocks are stocks of companies that are expected to grow at a rate much higher than the industry average, particularly when it comes to their revenue and profits. And although it's not uncommon to find growth stocks that don't currently make a profit, it's often because they spend a lot growing the business in its earlier stages to set it up for future profits.

Investors gravitate to growth stocks because fast-growing companies often translate to fast-moving share prices. If you're interested in growth stocks and have $5,000, here are two smart buys.

Not only has it been a rough year for Spotify Technology (NYSE: SPOT) (it's down over 67% year to date as of Nov. 28), but it's been a roller-coaster ride for the music streaming giant since it went public in April 2018. Since its initial public offering (IPO), Spotify's stock is down just over 47%, even though it had more than doubled by February 2021. This latest drop is partly due to the company's disappointing earnings, but that shouldn't deter long-term investors.

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Source Fool.com