1. Alphabet
Alphabet (GOOG -1.59%) (GOOGL -1.62%) should benefit from two major tailwinds in 2024: the expansion of artificial intelligence (AI) and advertising.
The main revenue stream for Alphabet, which also owns YouTube and the Google search engine, comes from ad sales. Businesses did not raise their advertising spending in 2022 or the first half of 2023 due to the economic outlook. In the third quarter, Alphabet’s ad revenue rose by 9%, a significant gain over previous quarters.
Furthermore, Alphabet released the most recent iteration of their Gemini generative AI model, which has demonstrated exceptional performance in several tests. The advancement accomplished in 2023 will help the stock rise in 2024, even if Alphabet may need some time to monetize it.
2. The Amazon
Amazon (AMZN -2.15%), Alphabet’s main competitor, is narrowing the difference fast as its business is starting to expand.
Amazon’s profitability increased in 2023 as a result of efficiency gains made by CEO Andy Jassy of the corporation.
With its margins nearly at all-time highs, Amazon is poised for a fantastic year in 2024 if it can maintain these gains for the entire year. I’m sure they can pull this off because Jassy isn’t pushing expansion the way Jeff Bezos once did. However, Amazon’s sales rose by 13% in the most recent quarter.
Even though it was a poor year, the cloud computing sector, driven by Amazon Web Services (AWS) saw expansion. As artificial intelligence develops, there should be a boom in demand for this commodity, which will enable Amazon attain larger margins and an incredible 2024.
3. HomeAway
Every recession and the ban on short-term rentals were expected to kill Airbnb’s (ABNB -1.94%) business in 2023. Still, the business continues to operate and generates outstanding results.
In the third quarter, revenue climbed by 18% to $3.4 billion, of which more than 40% was converted into free cash flow. Consequently, Airbnb will remain a cash cow in 2024 regardless of the status of the economy, allowing it to repurchase its already-cheap stock and securing its place in the market.
4. The Crowd
Cybersecurity continues to pique the interest of many businesses. There has never been a more crucial moment to protect company assets and customer data. Since scammers are becoming more adept, having top-notch protection is crucial.
This is where Crowd Strike (CRWD 0.36%) comes in. A machine learning technique is used by its endpoint security software to differentiate between normal operations and threats to safeguard network endpoints, such laptops and cellphones. But that’s just the beginning; due to Crowd Strike’s abundance of extra protection options, 63% of users use at least five of their products.
Although its yearly recurring revenue was only $3.15 billion (up 35% year over year in Q3), Crowd Strike has a lot of room to grow. The current valuation of the cybersecurity industry is $100 billion. Because CrowdStrike still has a lot of growth ahead of it in a critical field, it is a great stock pick for 2024 and beyond.
5. MercadoLibre
Few companies in the e-commerce sector have expanded as rapidly as MercadoLibre (MELI -1.56%), based in Latin America.
Its two-pronged expansion approach works incredibly well: a fintech wing and a commerce wing. For example, Q3 commerce income reached its highest level in over a year, rising by a currency-neutral 76% to $2.13 billion. Fintech saw a significant 61% gain as well, coming to $1.63 billion.
Mercado Libre is anticipated to continue on its strong growth trajectory, with Wall Street analysts projecting a 23% increase in revenue by 2024. However, don’t be alarmed if Mercado Libre grows even faster than that—it has consistently outperformed these estimates.
MercadoLibre, which has a substantial market in Latin America, is positioned to continue to do well in 2019.
6. Semiconductor Taiwan
The cycle of semiconductor demand is set to bottom out, thus Taiwan Semiconductor (TSM -2.23%), in the opinion of TSMC management, should likewise have a strong 2024.
Additionally, Nvidia’s 3nm (nanometer) processor is about to reach full production, which will increase revenue, as products like the iPhone and its GPUs incorporate game-changing technologies. At 16 times 2024 earnings, the company is currently a no-brainer buy.
7. iPath
UiPath (PATH -7.22%) sells robotic process automation (RPA) software. This allows its users to automate time-consuming tasks. While UiPath isn’t an AI technology in and of itself, it does include several AI technologies that can assist it in automating further tasks.
Like CrowdStrike, UiPath is competing in a big market. Grand View Research projects that this industry will grow from $2.9 billion in 2022 to $30.9 billion by 2030. With recurring income of $1.38 billion (up 24% year over year in Q3), UiPath has already taken a substantial share of this market.
If UiPath can maintain its position as the industry leader, the firm will have a vigorous ten years of development ahead of it, which will justify the stock’s twelve times sales price.
8. The PayPal
PayPal (PYPL -3.04%), one of the least costly businesses on the market, has positive financial results.
Conversely, the Given that the S&P 500 trades at 25 times trailing earnings and 21 times anticipated earnings, it is clear how cheap PayPal’s stock is.
As its new CEO adjusts, PayPal should see a resurgence in 2024, with analysts projecting market-beating earnings growth.
9. Localized
Despite being a relatively unknown company, dLocal (DLO -2.65%) provides its consumers with a novel offering. Its clients can now reach regions of the world through its software that were previously thought to be too expensive to visit.
Instead of building a payment processing infrastructure in Peru, India, Bangladesh, or Nigeria, companies can pay dLocal a percentage of their profits, and they would take care of the financial transaction. Reputable companies like Spotify, Nike, Shopify, Amazon, and Nike are among its clientele.
The company’s $164 million in revenue grew by 47% in a single year, but it still turns a profit on a monthly basis. In the last quarter, it made a profit margin of 25%.
The company is cheap, selling at just 21 times 2024 earnings, making it a solid buy for the following year.
10. Safety Shot Inc.
Safety Shot, which the business claims can cut blood alcohol concentration in as little as 30 minutes, is now expected to drive the majority of SHOT’s income in the upcoming quarters and years.
Safety Shot has a strong clinical background and produces over-the-counter and prescription health and wellness products through its Jupiter Wellness business section infrastructure and knowledge for development.
In order to maximize value for shareholders, the company intends to spin off legacy assets from its Jupiter Wellness division.
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