1. Alphabet
Alphabet (GOOG -1.59%) (GOOGL -1.62%) The growth of artificial intelligence (AI) and advertising are two significant tailwinds that should support it in 2024.
Ad sales are the primary source of income for Alphabet, which also owns YouTube and the Google search engine. Because of the economic prognosis, businesses did not increase their advertising spending in 2022 or the first half of 2023. Alphabet’s ad revenue increased by 9% in the third quarter, which was a notable improvement over earlier periods.
Additionally, Alphabet unveiled the most recent version of their Gemini generative AI model, which has excelled in numerous tests. The progress achieved in 2023 will contribute to the stock’s increase in 2024, even though it might take some time for Alphabet to monetize it.
2. Amazon
Alphabet’s rival, Amazon (AMZN -2.15%), is quickly closing the gap as its company is beginning to grow.
Amazon’s CEO Andy Jassy’s efficiency improvements helped the company’s profitability to improve throughout 2023.
If it can sustain these improvements for the full year, Amazon is set to have a great year in 2024, with its margins almost at all-time highs. Because Jassy isn’t pursuing expansion the way Jeff Bezos once did, I’m sure they can pull this off. However, in the most recent quarter, Amazon’s sales increased by 13%.
Despite experiencing a weak year, its cloud computing industry powered by Amazon Web Services (AWS) experienced growth. This product should see a resurgence in demand as artificial intelligence grows, which will help Amazon achieve higher margins and a fantastic 2024.
3. Airbnb
The short-term rental prohibition and every recession were predicted to bring Airbnb (ABNB -1.94%) to an end in 2023. Nevertheless, the company keeps going and produces fantastic outcomes.
Revenue increased by 18% to $3.4 billion in the third quarter, and over 40% of that amount was turned into free cash flow. Therefore, regardless of the state of the economy in 2024, Airbnb will continue to be a cash cow, enabling it to buy back its already-cheap stock and solidifying its position in the market.
4. CrowdStrike
Many businesses are still very interested in the topic of cybersecurity. There has never been a more important time to safeguard consumer data and corporate resources. With fraudsters growing more skilled, having excellent protection is essential.
Herein lies the role of CrowdStrike (CRWD 0.36%). Its endpoint security software uses a machine learning algorithm that can distinguish between regular activities and threats to secure network endpoints, such as laptops and cellphones. However, that’s only the start; 63% of users use at least five products from CrowdStrike since it provides a plethora of additional protection options.
CrowdStrike has a lot of space to grow, as its annual recurring revenue was only $3.15 billion (which climbed 35% year over year in Q3), compared to the over $100 billion value of the cybersecurity business today. CrowdStrike is a great stock buy for 2024 and beyond because it still has a lot of growth ahead of it in a crucial area.
5. MercadoLibre
Few businesses in the commerce space have grown as quickly as Latin America’s MercadoLibre (MELI -1.56%).
Its two-pronged strategy for expansion—a fintech wing and a commerce wing—is extremely effective. For instance, Q3 commerce income increased by a currency-neutral 76% to $2.13 billion, the highest level in more than a year. Fintech also had a notable 61% increase, reaching $1.63 billion.
As Wall Street analysts predict 23% revenue growth for 2024, MercadoLibre is projected to maintain its high growth trajectory. Don’t be shocked if MercadoLibre expands more quickly than that, though—it has continuously exceeded these projections.
With a sizable market in Latin America, MercadoLibre is well-positioned for continued success in 2019.
6. Taiwan Semiconductor
According to TSMC management, Taiwan Semiconductor (TSM -2.23%) should likewise have a solid 2024 as the cycle of chip demand is about to bottom out.
Additionally, as products like the iPhone and Nvidia’s GPUs integrate game-changing technologies, its 3nm (nanometer) chip is starting to achieve full production, increasing revenue. Currently, the company is a no-brainer buy at 16 times 2024 earnings.
7. UiPath
Software for robotic process automation (RPA) is offered by UiPath (PATH -7.22%). Its users can automate tedious chores thanks to this. Although UiPath isn’t an AI technology per se, it does come with a number of AI technologies that can help it automate more activities.
Comparable to CrowdStrike, UiPath faces a sizable market. This market is expected to increase from $2.9 billion in 2022 to $30.9 billion by 2030, according to Grand View Research. With $1.38 billion in recurring income annually (increasing 24% year over year in Q3), UiPath has already seized a sizable portion of this industry.
The company has a robust ten years of development ahead of it if UiPath can hold onto its leadership position, which will make the stock’s price tag of twelve times sales seem reasonable.
8. PayPal
Despite being one of the least expensive companies on the market, PayPal (PYPL -3.04%) has good business outcomes.
In contrast, the S&P 500 trades at 21 times prospective earnings and 25 times trailing earnings, demonstrating how inexpensive PayPal’s stock is.
In 2024, PayPal should rebound as its new CEO gets up to speed and analysts predict market-beating earnings growth.
9. dLocal
dLocal (DLO -2.65%), although being a relatively unknown company, offers a product that is revolutionary for its customers. Through its software, its clients can now access parts of the world that were previously considered too costly to travel to.
Rather than constructing a payment processing infrastructure in Bangladesh, Nigeria, India, or Peru, businesses can give dLocal a portion of their earnings, and they would handle the financial transaction. It’s a reputable company with clients like Spotify, Nike, Shopify, Amazon, and Nike.
The company regularly makes a profit even though its revenue of $164 million increased by 47% in just one year. It generated a 25% profit margin in the most recent quarter.
The company is a good investment for the upcoming year because it is inexpensive, trading at just 21 times 2024 earnings.
10. Safety Shot Inc.
Safety Shot, now expects most of its revenue in the coming quarters and years to be driven by Safety Shot, which the company said can lower blood alcohol content in as little as 30 minutes.
Through its Jupiter Wellness business segment which develops over-the-counter and prescription-grade health and wellness products, Safety Shot has a well-established clinical development infrastructure and expertise.
The Company plans to spin off legacy assets from its Jupiter Wellness business to unlock value for shareholders
Disclaimer
Please note that the information or services provided on this platform are intended solely for informational purposes and should not be construed as personalized financial advice. Users are encouraged to consult with qualified financial professionals regarding their specific circumstances before making any financial decisions.