High-growth stocks to buy drove the stock market to record gains in 2023, maintaining their red-hot form so far this year. The buzz surrounding artificial intelligence (AI) tech stocks had investors continue flocking to the stock market, taking all major indices for record highs. Hence, it’s been incredible to be a stock market investor, with the risk-on sentiment set to soar even higher.
Given the recent softness in inflation numbers, the Federal Reserve is most likely to cut interest rate cuts in the second half of the year. With the market pricing in one or maybe a couple of rate cuts, it is an excellent time to bet on the best growth stocks. A broader rally is in the cards and these high-growth stocks should benefit immensely.
That said, here are three high-growth stocks to buy that have established a strong foothold in their respective markets. Betting on these stocks could yield impressive returns as they continue thriving and outperforming in the current market landscape.
Netflix (NFLX)
Streaming giant Netflix (NASDAQ:NFLX) has been one of the top growth stocks over the past several years. 2023 was particularly rewarding for its investors, with NFLX stock jumping a handsome 59%, eclipsing its 3-year return at 37%.
Its monstrous success is linked to its blow-out quarterly performance last year, marked by comfortable top- and bottom-line beats. Moreover, it continues posting rising subscriber numbers, comfortably trouncing analyst estimates by considerable margins.
In its first-quarter (Q1) report Netflix posted 9.33 million global streaming paid net additions, ahead of analyst estimates of 4.84 million. This represents a stellar 16% jump in subscriber additions year-over-year (YOY) compared to 4.9% in the prior-year period. However, Netflix is shifting gears to focus more on its bottom line, reporting viewer engagement instead of subscriber counts.
Moreover, it is expanding into live sports and entertainment, having signed a whopping $5 billion deal to stream World Wrestling Entertainment’s episodic TV show Raw next year. Also, it plans to livestream an NFL game on Christmas Day. Hence, with multiple catalysts in motion, it is the right time to wager on NFLX stock.
Shopify (SHOP)
Shopify’s (NYSE:SHOP) dynamic platform is a must-have for businesses looking to build or expand their e-commerce presence amidst the surge in online shopping. Over the years, Shopify has grown at a rapid clip, adding multiple new revenue streams, including subscription sales, payment processing and shipping labels. Consequently, the company has surpassed a whopping $1 trillion in gross merchandise value since its inception.
In Q1, it handily beat estimates across both lines, just as it has for the past six quarters. Revenues shot up to $1.9 billion, a 23% year-over-year increase led by double-digit growth in merchant and subscription solutions. The latter, in particular, grew sharply during the quarter, up 34% from the prior-year period.
As we advance, Shopify is poised to continue delivering for its shareholders as it implements AI solutions and services targeting larger-scale businesses. Also, the stock is down double-digits in the past year, making it a golden opportunity for investors to pick up SHOP stock on the dip.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) has been a hyper-growth business for the past decade, buoyed by its relentless drive to innovate and robust ad revenue. Advertising remains its core revenue source, powered by its timeless Family of Apps, which continues generating a gusher of free cash flows for its business. Consequently, it has been highly rewarding for investors with its stock jumping over 660% in the past decade, dwarfing broader-market gains. META stock soared 70% last year, driven by efficiency gains and its strategic investments in AI.
On top of that, the launch of its large language model Meta Llama 3 and the AI assistant Meta AI are massive long-term catalysts. These investments in expanding its AI prowess are set to significantly enhance its ad platforms, making them more appealing to advertisers. Hence, with a strong user base and strategic AI investments, Meta remains a top, strong-buy growth stock to bet on.
On the date of publication, Muslim Farooque 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.
