Identifying exceptional growth stocks that can outperform the Nasdaq in the upcoming year calls for a blend of astute judgment and forward-looking analysis. The companies in question must demonstrate durability and a commanding presence in their respective sectors. As 2023 draws to a close, a distinct cluster of growth stocks has emerged, each brimming with massive potential.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) is a powerhouse in the American video subscription streaming landscape, headquartered in Los Gatos, California. It stands as the largest streaming service globally, boasting a staggering 247.15 million subscribers. The streaming pioneer, Netflix, has fundamentally transformed how audiences consume content. The company’s strategic reorganization and unwavering focus on global expansion have worked wonders, propelling subscriber numbers upward. Furthermore, Netflix’s recent measures to clamp down on password sharing reflect its unwavering commitment to gaining market share.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), the parent company of Google, emerges as a compelling contender for top growth stock of 2024. The firm has witnessed robust revenue and EPS growth in the fiscal year of 2023, primarily underpinned by the surging demand for artificial intelligence. Notably, Google Search and YouTube have been instrumental in propelling advertising revenue, with 2024 being poised for potentially even more lucrative returns. In the most recent quarter, Alphabet experienced an 11% year-over-year surge in revenue, amounting to an impressive $76.7 billion. More notably, the company’s operating income reached $21.3 billion, with its cloud business serving as a primary growth catalyst.
Shopify (SHOP)
Shopify (NYSE:SHOP) has successfully reclaimed its status as a $100 billion market capitalization entity, setting the stage for what could be a transformative year in 2024. Following significant losses in 2022, the company’s restructuring efforts have instilled newfound confidence in investors. Management has initiated structural overhauls within the business that are likely to yield tangible results in the approaching year. One such change was the divestiture of its logistics arm to Flexport, yielding an immediate impact by swinging operating income from negative to positive territory. This move has not only bolstered Shopify’s financial flexibility but also positioned it favorably to harness burgeoning opportunities in artificial intelligence. Moreover, Shopify’s reduction of its workforce by 20% to address prior profitability concerns, complemented by analysts’ projections of a 20% revenue surge in FY24, positions the company as a leading growth stock set to outperform the Nasdaq in 2024.
