2 ASX growth shares that could turn $1,000 into $10,000 by 2034

I think these two stocks have a shot at being 10-baggers.

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Imagine if every $1,000 you invested in ASX shares became $10,000 over the next 10 years. It's an entirely possible return, even if you have to find the highest-performing ASX growth shares on the stock market.

A 10x return over 10 years requires a compounded annual growth rate (CAGR) in a company's share price (assuming no dividend returns) of 25.9%. No easy feat.

But I think there are a couple of ASX growth shares that at least have a shot at hitting this lofty benchmark.

2 ASX growth shares that might turn $1,000 into $10,000 by 2034

Xero Ltd (ASX: XRO)

Xero has been a prominent ASX growth stock for many years now. Yet I've continuously been impressed with this company's performance.

Back in November, Xero revealed its latest numbers, which did nothing to dent my confidence. Over the six months to 30 September 2023, the cloud-based accounting software provider reported $799.5 million in revenues. That was up 21% over the same period in 2022.

Earnings came in at $206.1 million, up substantially over the $108.6 million reported last year. That helped Xero's free cash flow almost 10x, rising from $15.6 million in 2022 to $106.7 million in 2023.

If this ASX growth stock can keep banging out anything close to these kinds of numbers over the coming decade, I can easily see Xero shares turning a $1,000 investment total into $10,000 by 2034.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Next up we have an exchange-traded fund (ETF) to look at. The BetaSahes Global Cybersecurity ETF pretty much does what it says on the tin. It gives investors exposure to a portfolio of international companies involved in cybersecurity.

Given its exponentially growing importance in the modern world, cybersecurity is one of the most lucrative fields for growth stocks, in my view.

Individuals, governments and businesses are almost certainly going to have to keep increasing investment in cybersecurity over the coming decades. That's given how more and more interactions and transactions are moving online.

According to Statista, global cybersecurity spending is expected to grow at a CAGR of 10.56% until the year 2028.

This HACK ETF is a great way of harnessing this growth.

It gives investors exposure to some of the best and most trusted cybersecurity companies (and growth stocks) in the world. These include CrowdStrike, Palo Alto, Cisco, Broadcom, Cloudflare, Okta and Trend Micro.

This ETF already has some impressive runs on the board, having returned an average of 18.02% per annum since its inception in 2016 (as of 28 March). However, I think this can accelerate even further over the next decade, given the organic growth of the cybersecurity industry.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, Cisco Systems, Cloudflare, CrowdStrike, Okta, Palo Alto Networks, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Broadcom. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and Xero. The Motley Fool Australia has recommended CrowdStrike and Okta. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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