3 ASX growth shares I’d buy with $7,000

A $7,000 investment can go a long way if it is put into the right businesses.

For me, that means focusing on companies that still have room to expand and can keep building over time, rather than those that have already reached their peak.

Here are three ASX growth shares I would consider right now.

Megaport Ltd (ASX: MP1)

Network-as-a-service company Megaport is one growth share I’d buy.

What interests me is where it sits in the digital ecosystem. As more businesses shift workloads between cloud providers and data centres, the need for flexible, on-demand connectivity continues to grow. Megaport is positioned right in the middle of that.

Instead of building physical infrastructure for each connection, it allows customers to scale their network connections up or down as needed. That flexibility becomes more valuable as systems become more complex.

The company is also expanding what it can offer. Its acquisition of Latitude.sh adds bare metal infrastructure into the mix, which could deepen its role in how customers deploy and connect their workloads.

The key for me is adoption. As usage increases, the economics of the model tend to improve. That means revenue can build without the same level of incremental cost, which supports long-term growth potential.

REA Group Ltd (ASX: REA)

REA Group is often thought of as a mature business, but I do not see it that way.

It already has a strong position in Australia, though I think the growth is coming from how it continues to build on that.

Over time, it has found ways to increase revenue per listing, introduce new products, and deepen its role in the property transaction process.

That tells me there is still room to expand within its core market.

There is also the international side of the business, which does not get as much attention. As those operations develop, they could become a more meaningful contributor.

What I like here is that growth does not rely on one single driver. It comes from multiple smaller improvements that build over time.

SiteMinder Ltd (ASX: SDR)

Another ASX growth share I’d buy is SiteMinder. It operates in a niche that is becoming more important.

Hotels are increasingly relying on digital platforms to manage bookings, pricing, and distribution. SiteMinder provides the software that helps connect hotels to online travel agents and other booking channels.

What I find interesting is how this can scale. Once a hotel is using the platform, it becomes part of its daily operations. That creates stickiness and recurring revenue.

At the same time, the company still has a large number of hotels globally that are yet to adopt this type of technology. That leaves room for expansion.

As more properties come onto the platform and existing customers use more features, revenue can build in layers.

Foolish takeaway

If I were investing $7,000 into ASX growth shares today, I would focus on businesses that have clear pathways to expand.

I think all three in this article tick this box and have the potential to deliver good returns in the coming years.

The post 3 ASX growth shares I’d buy with $7,000 appeared first on The Motley Fool Australia.

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• What are the best Australian shares to buy now to try and make a million?

Motley Fool contributor Grace Alvino 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 Megaport and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.