The future of the U.S. economy looks promising, with recent data suggesting ongoing growth and stability. The stock market, particularly the Nasdaq Composite Index, continues to show impressive gains over the past several months. This underscores confidence in the market’s trajectory.
Historical trends indicate that after periods of sustained growth like this, the Nasdaq has often seen further increases, with median performance one year later showing gains of 14.8%. Risks are always to be considered, such as potential declines seen in the past. But overall, the outlook remains positive, buoyed by strong economic fundamentals and robust corporate performance.
This Nasdaq bull market is projected to sustain. Let’s delve into the top three Nasdaq stocks that will continue to skyrocket and drive your portfolio value.
Amazon.com (AMZN)
Amazon.com (NASDAQ:AMZN) is a retail company engaging in the sale of consumer products and advertising. And Amazon Web Services (AWS), which provides cloud computing services, has led to Amazon’s revenue and profit growing over the last few years.
Earnings have been rising consistently as of the last financial year. Furthermore, 51 Yahoo Finance analysts have set an average growth target of 15.7%. AMZN has a profit margin of 5.29% and an operating margin of 7.52%. Clearly, this is impressive given the complex, capital-intensive nature of Amazon’s logistical operations, a key component of its retail services. Coming from a lackluster 2022, quarterly revenue growth year over year (YOY) is 3,721.60%, with EBITDA at $85.52 billion.
The Consumer Cyclical sector is projected to grow 36% over the next 5 years. Additionally, AMZN is rated as overweight/outperform by multiple institutions, which hold 62.83% of Amazon. And AWS is encouraging innovation and gaining additional customers by giving startups free credits and allowing these credits to be used on models from companies such as Anthropic and Meta.
Finally, an improving foothold in the advertisement sector is also opening up a new front for growth. Therefore, Amazon is likely to continue growing, given the aggressive innovation it pursues and encourages. This stock is a buy!
Baidu (BIDU)
Chinese technology company Baidu (NASDAQ:BIDU) specializes in internet services, products and artificial intelligence (AI). Currently trading at $108.32, it has a 12-month median price target of $154.34. This represents an increase of 42.49%.
In Q4 2023, Baidu reported stellar earnings, showing growth across the board. The company enjoys a revenue increase 6% YOY to $4.92 billion. Net income jumped an astonishing 48% to $366 million, showcasing Baidu’s focus on enhancing operational efficiencies. This success was mirrored in results for fiscal 2023. The company’s goal to persistently improve efficiency and achieve high-quality growth is paying off as net income skyrocketed 169% to $2.86 billion.
Furthermore, this growth will likely continue in 2024. The company was reported to have entered preliminary talks with tech giant Apple to include Baidu’s generative AI in Apple’s devices within China. This collaboration is largely spurred by unique regulatory concerns that the Chinese market presents. China requires that generative AI models must be approved before being launched to the public. And, Baidu’s ERNIE Bot is among those already approved by its cyberspace regulator. Thus, this is providing a huge opportunity for Baidu to grow its AI solutions amid China’s burgeoning AI market.
Based on the company’s AI strategy and strong financial position, analysts expect revenue for fiscal 2024 to increase 7.8% to $20.08 billion. Therefore, Baidu’s AI innovation and growth ambitions hold immense long-term gains potential, paving the way for continued future success.
Meta Platforms Inc (META)
Meta Platforms Inc (NASDAQ:META) is one of the largest international technology parent companies. It oversees a broad range of industry giants in social media and communication technologies. Those include Facebook, Instagram, WhatsApp, and more. With the strength of these businesses, Meta is home to a $506.74 valuation with a YOY growth of 137.83%.
Also, META reported a strong financial outing in Q4 2023 with sizable growth across the board. Additionally, it outperformed consensus industry forecasts of both EPS and revenue. On the revenue side, META reeled in $40.11 billion, or a growth of 24.7%. Both net income and diluted EPS increase YOY by around 200%, reporting $14.02 billion and $5.3 respectively.
In addition, META concluded its 2023 business year on a strong note and hopes to carry similar performance into 2024 on the backs of the AI boom. From 2023-2024, AI has been a key topic for investors. And Meta certainly hasn’t been shy about announcing their new AI developments, including their planned adoption of an AI video ecosystem. These plans, along with recruitments for AI development heads, suggest Meta is on the right track and set for an AI boom of its own.
On the date of publication, Michael Que 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.
