By many metrics, we’re already in a bull market. Stocks have reached new all-time highs in most indices, with investors focused on S&P 500 returns cheering a return to new highs. In this period called the “Usain Bolt” era, stocks return to posting new records on a seemingly daily basis.
That’s great for investors, as a bull market signifies rising prices in financial markets. Various stocks and traded assets are seeing their valuations balloon. Investors feel wealthy and potentially stimulate more economic activity. Whether that’s a good or bad thing for the Federal Reserve in its battle against inflation remains to be seen. But consumer confidence is on the rise, and many metrics point to what could be a strong year in 2024.
With that perspective, let’s look at growth stocks that could benefit most from this environment in 2024.
Shopify (SHOP)
In Q3 2023, Shopify (NYSE:SHOP) outperformed predictions, achieving a 25.48% revenue growth, totaling $1.71 billion. With net income at $718 million and $0.55 in diluted earnings per share, Shopify surpassed industry estimates 65.76% on the bottom line and 2.64% on the top. The e-commerce platform provider is on a robust growth trajectory. It’s boosted its expanded partnership with Google to enhance user experience and business coverage.
In July 2023, Shopify introduced new AI tools like Sidekick and Shopify Magic to empower merchants, aiming to enhance business growth. The company envisions exciting prospects for the next five years, emphasizing AI accessibility for businesses of all sizes.
In other recent news, Manhattan Associates and Shopify have partnered to elevate omnichannel shopping experiences for retailers. Integrating Shopify’s commerce platform with Manhattan’s order management solution aims to deliver exceptional customer journeys. This includes post-purchase services and digital self-service tools for enhanced convenience.
Meta Platforms (META)
AI emerges as a key focus for Meta Platforms (NASDAQ:META), driving significant growth. Big investments in AI, the deployment of Meta AI as an assistant. The AI Studio platform integration underscores its commitment to advancing AI applications and content creation.
CEO Mark Zuckerberg revealed a multi-billion investment in Nvidia’s (NASDAQ:NVDA) AI chips to enhance its AI infrastructure. The integration of more Nvidia H100 GPUs is planned by the end of 2024, signaling a substantial expenditure. In its Q3 earnings, Meta highlighted AI computing infrastructure as a significant part of the projected 2024 expenditure, ranging between $94 billion to $99 billion.
Meta rebounded impressively last year, cutting costs and revitalizing ad sales. The stock surged 194%, ranking second in terms of S&P 500 performance. With a market capitalization of over $980 billion, Meta eyes rejoining the trillion-dollar club, banking on AI and the metaverse. CEO Zuckerberg faces challenges to prove the company’s long-term success, but Meta’s fundamentals make this stock a screaming buy.
Li Auto (LI)
Li Auto (NASDAQ:LI), a Chinese electric vehicle manufacturer, achieved robust financial performance over the past year. With an 182.2% year-over-year increase in vehicle deliveries (reaching 376,030). This drove revenue to come in at $13.665 billion (more than doubling), Li Auto outperformed key Chinese EV competitors. Li’s operating cash flow surged from $1.070 billion to $5.249 billion, an incredible growth rate of 390.53%.
As China’s best-selling emerging new energy automaker, Li Auto partnered with Nvidia, utilizing DRIVE Thor for advanced functions like automated driving and passenger monitoring, potentially boosting sales growth.
Having achieved profitability in the first three quarters of 2023, Li is set to launch its fully electric vehicle in February. Despite a 12% dip in the stock this year, analysts anticipate its growth potential to outperform the market.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
