3 stocks to have in your portfolio in 2024
These are the 3 stocks to have in your portfolio in 2024, according to experts.
In 2023, these shares triumphed on the financial markets, demonstrating that the 3 companies have a unique vision and effective strategies to generate growth and innovate in their respective sectors.
With even broader growth prospects in 2024, these stocks will continue to be the focus of investors seeking opportunities in the evolving economic landscape.
Below we look at the reasons behind each company's success and analyze the outlook for 2024.
1) Amazon The e-commerce giant, Amazon, had an exceptional 2023, highlighting its ability to diversify sources of income.
While e-commerce remains its flagship, with net sales reaching $405 billion in the first nine months of 2023, the company has shown that it is not solely dependent on this sector.
Subscriptions and advertising have generated tens of billions in revenue, contributing to higher margins.
In particular, the Amazon Web Services (AWS) segment, created to support e-commerce, has transformed into the main player in the world of cloud computing.
Despite growing competition, AWS remains a leader and contributes significantly to Amazon's overall operating income.
The rally in Amazon shares, +85% in 2023, could continue in 2024, supported by the recovery of both e-commerce and cloud computing.
read also How to buy Amazon shares 2) MercadoLibre MercadoLibre operates exclusively in Latin America where it has played a key role in transforming the e-commerce industry in the region.
Crucial was the creation of Mercado Pago, a fintech solution designed to allow cash customers to make online purchases in a predominantly cash-based society.
This initiative has helped grow MercadoLibre, leading to an ecosystem that also integrates Mercado Envios for fulfillment and shipping management.
In the first three quarters of 2023, the company generated more than $10 billion in revenue, an annual increase of 36%.
Controlling general and administrative expenses led to net income of $822 million in the first nine months, far exceeding the $317 million in the same period in 2022.
The stock's 90% rise in 2023 is a testament to the Investor recognition for MercadoLibre's growth and profitability.
With its focus on Latin America, you can expect the company to continue to thrive in 2024.
3) Shopify Shopify stands out in the competitive e-commerce platform industry thanks to its ease of use and vast ecosystem.
Aimed at entrepreneurs of all sizes, the platform offers flexibility and advanced features.
With Shopify Plus, the company has extended its reach, providing advanced solutions for large and growing businesses, offering faster onboarding and extra features like wholesale channel solutions and dropshipping.
By foregoing investment in logistics operations, Shopify has been able to reduce financial burdens and post revenue growth of 27% in the first three quarters of 2023, to $4.9 billion.
Despite a loss of $525 million, mostly due to the sale of the logistics business, Shopify reported a profit of $718 million in the third quarter.
With shares expected to rise 140% in 2023, the company appears to be enjoying a period of sustained growth.
Despite recent losses, Shopify's valuation continues to be attractive, with a low price-to-sales (P/S) ratio by historical standards.
This suggests that, in 2024, Shopify's stock could continue to rise as the company works to leverage its vast ecosystem and provide advanced solutions for online entrepreneurs.
DISCLAIMER The information and considerations contained in this article should not be used as the sole or primary support on which to make investment decisions.
The reader maintains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.
