1. Alphabet
In 2024, Alphabet Inc. (GOOG -1.59%, GOOGL -1.62%) is poised for significant growth driven by advancements in artificial intelligence (AI) and the advertising sector.
Advertising revenue remains the cornerstone of Alphabet’s financial success. The company owns both YouTube and the Google search engine, two dominant platforms in digital advertising. Despite the economic challenges that led to restrained advertising expenditures in 2022 and the first half of 2023, Alphabet experienced a 9% increase in ad revenue during the third quarter of 2023, marking a substantial recovery.
Moreover, Alphabet introduced the latest iteration of its generative AI model, Gemini, which has demonstrated outstanding performance in various tests. While monetization of this technology may take time, the advancements achieved in 2023 are expected to bolster Alphabet’s stock performance in 2024.
2. The Amazon
Amazon (NASDAQ: AMZN), a key competitor to Alphabet, is rapidly closing the gap as its business continues to grow.
In 2023, Amazon experienced a significant increase in profitability, attributed to efficiency improvements implemented by CEO Andy Jassy.
With profit margins approaching record highs, Amazon is well-positioned for an exceptional year in 2024, provided these efficiency gains are sustained. Unlike Jeff Bezos, Jassy is focusing less on aggressive expansion, which has contributed to the company’s steady growth. Notably, Amazon’s sales increased by 13% in the latest quarter.
Despite a challenging year overall, Amazon Web Services (AWS), the company’s cloud computing division, showed growth. As advancements in artificial intelligence drive demand, AWS is expected to contribute to higher margins and support Amazon’s projected success in 2024.
3. HomeAway
Despite economic downturns and regulatory challenges, such as the ban on short-term rentals, Airbnb (ABNB -1.94%) has demonstrated remarkable resilience in 2023. The company’s robust performance continues to defy expectations.
In the third quarter, Airbnb reported an impressive 18% increase in revenue, reaching $3.4 billion. Notably, over 40% of this revenue was converted into free cash flow. This financial strength ensures that Airbnb remains a cash-generating powerhouse into 2024, enabling strategic stock repurchases and solidifying its market position regardless of economic conditions.
4. The Crowd
In today’s digital age, cybersecurity has become a paramount concern for businesses. Protecting company assets and customer data has never been more critical as cyber threats become increasingly sophisticated.
Crowd Strike (CRWD 0.36%) stands out in this landscape with its advanced endpoint security software, which leverages machine learning to distinguish between normal operations and potential threats. This technology protects network endpoints, including laptops and mobile devices, from malicious activities.
Beyond basic protection, Crowd Strike offers a comprehensive suite of security solutions, with 63% of its users utilizing at least five of its products. The company’s annual recurring revenue reached $3.15 billion in Q3, reflecting a 35% year-over-year increase, yet there remains significant growth potential within the $100 billion cybersecurity market.
Given its robust technology and expansive growth opportunities, Crowd Strike is an excellent investment choice for 2024 and beyond, poised to continue leading the way in cybersecurity innovation.
5. MercadoLibre
Few companies in the e-commerce sector have experienced growth as swiftly as MercadoLibre (MELI -1.56%), a leading player in Latin America.
MercadoLibre employs a dual expansion strategy that has proven highly effective: one focused on fintech and the other on commerce. For instance, in Q3, the company’s commerce revenue surged by a currency-neutral 76% year-over-year, reaching $2.13 billion, marking its highest level in over a year. Similarly, the fintech segment saw a remarkable 61% increase, totaling $1.63 billion.
Projections indicate that MercadoLibre will maintain its robust growth trajectory, with Wall Street analysts forecasting a 23% revenue increase by 2024. Historically, the company has consistently exceeded these expectations, suggesting the potential for even more accelerated growth.
With its extensive market presence in Latin America, Mercado Libre is well-positioned to sustain its strong performance into the foreseeable future.
6. Semiconductor Taiwan
The semiconductor demand cycle is projected to reach its lowest point, leading to an optimistic outlook for Taiwan Semiconductor Manufacturing Company (TSMC) in 2024, as indicated by TSMC’s management.
Furthermore, Nvidia’s 3nm (nanometer) processor is nearing full production capacity, which is expected to significantly boost revenue. This is due to the incorporation of advanced technologies in products such as the iPhone and Nvidia’s GPUs. At a valuation of 16 times the projected earnings for 2024, TSMC represents a compelling investment opportunity.
7. UiPath
UiPath (PATH -7.22%) specializes in providing robotic process automation (RPA) software, enabling users to automate labor-intensive tasks efficiently. While UiPath itself is not purely an AI technology, it incorporates various AI technologies to enhance its automation capabilities.
Similar to CrowdStrike, UiPath operates within a substantial market. According to Grand View Research, this sector is expected to expand from $2.9 billion in 2022 to $30.9 billion by 2030. With recurring revenue reaching $1.38 billion in Q3, reflecting a 24% year-over-year growth, UiPath has already secured a significant portion of this market.
If UiPath can sustain its leadership position, the company is poised for a decade of robust growth, potentially validating its current valuation at twelve times its sales.
8. The PayPal
PayPal (PYPL -3.04%) remains one of the most attractively priced companies in the current market, demonstrating strong financial performance.
In contrast to the S&P 500, which trades at 25 times trailing earnings and 21 times forward earnings, PayPal’s stock valuation is notably lower.
With the onboarding of its new CEO, PayPal is poised for a revival in 2024. Analysts forecast earnings growth that is expected to outperform the market.
9. Localized
dLocal, while not a household name, is revolutionizing the way businesses expand globally. Through its innovative software solutions, dLocal enables companies to access markets that were previously deemed too costly to enter.
Rather than investing in payment processing infrastructure in countries like Peru, India, Bangladesh, or Nigeria, businesses can leverage dLocal’s expertise. By paying a percentage of their revenues, companies can seamlessly manage financial transactions in these regions. Esteemed clients such as Spotify, Nike, Shopify, and Amazon trust dLocal for their international payment needs.
In the past year, dLocal achieved remarkable growth, with revenue reaching $164 million—a 47% increase. Impressively, the company remains consistently profitable, boasting a 25% profit margin in the most recent quarter.
With a valuation of just 21 times its projected 2024 earnings, dLocal presents a compelling investment opportunity for the coming year.
10. Safety Shot Inc.
Safety Shot, a product heralded for its ability to rapidly reduce blood alcohol concentration within a short timeframe, is poised to become the primary revenue driver for SHOT in the forthcoming quarters and beyond.
Backed by robust clinical research, Safety Shot is a flagship offering of the company, which specializes in both over-the-counter and prescription health and wellness solutions through its dedicated segment, Jupiter Wellness. Leveraging its advanced infrastructure and expertise, Jupiter Wellness is committed to pioneering innovative products that promote well-being.
In alignment with its strategic objectives aimed at enhancing shareholder value, the company is strategically planning to divest legacy assets within its Jupiter Wellness division, ensuring a focused and streamlined approach towards future growth and profitability.
Disclaimer
Please note that the services and information provided on this platform are intended for informational purposes and should not be construed as personalized financial advice. Users are encouraged to consult with licensed financial advisors to evaluate their individual circumstances before making any financial decisions.