The S&P 500 stands on the cusp of a potential bull market, with just one percentage point needed to hit a new record high.
For investors eyeing substantial gains, the imminent prospects are promising. Historical data from Vanguard indicates a median return of 223% during the last five bull markets. Seizing the momentum today becomes crucial, and two standout growth stocks, Shopify (SHOP) and The Trade Desk (TTD), emerge as compelling choices. Priced below $100, these stocks offer accessible entry points for investors looking to ride the wave through 2024 and beyond.
1. Shopify: Empowering Commerce with Innovation
Shopify positions itself as a pivotal player, providing software and services that empower merchants across diverse channels. Bridging the gap between brick-and-mortar and digital storefronts, Shopify's platform integrates with major e-commerce marketplaces and social media platforms, offering comprehensive support for branded websites and mobile apps. The recent inclusion of ancillary financial solutions, logistics support, and tools for cross-border and wholesale commerce showcases Shopify's turnkey approach.
👉 Check Out Video --> SHOP Price Analysis
While Shopify initially gained popularity with small businesses, its enterprise platform, Shopify Plus, propels it into larger market segments. A recognized leader among digital commerce platforms, Shopify solidifies its standing in the industry.
The third quarter witnessed a robust performance, with a 25% revenue surge to $1.7 billion, driven by momentum with larger merchants, international market traction, and increased pricing power. Notably, net income based on GAAP climbed to $718 million, marking a significant improvement from the year-ago period. The strategic move to sell its logistics business to Flexport further enhances profitability.
Amidst these accomplishments, Shopify secured the 16th position on the Fortune Future 50 List for 2023. The commendation stems from innovations like Shopify Magic, an AI suite empowering merchants in building storefronts, marketing products, and making data-driven decisions.
Looking forward, Shopify positions itself to capture the increasing demand for automation in a market where retail e-commerce and wholesale e-commerce sales are expected to grow at 8% and 20% annually through 2030, respectively. With a current valuation at approximately 15.7 times sales, patient investors are poised to benefit from Shopify's growth trajectory.
2. The Trade Desk: Elevating Advertising with AI
As the largest independent demand-side platform (DSP) in the ad tech industry, The Trade Desk stands out for its AI-driven approach in planning, measuring, and optimizing data-driven ad campaigns across digital channels. The company's independence, coupled with unique data access, positions it as a leader in the ad tech space, offering superior AI capabilities to advertisers.
In a significant move, The Trade Desk reported stellar third-quarter financial results, outpacing market leader Alphabet. With a 25% revenue increase to $493 million and a 29% rise in non-GAAP net income to $167 million, The Trade Desk showcased its prowess in gaining share in critical verticals like CTV advertising and retail media.
Looking ahead, the ad tech market is poised to expand at 14% annually through 2030, with The Trade Desk expected to outpace the market. Analysts project a sales growth of 22% annually over the next five years, making its current valuation of about 18.8 times sales appear reasonable for the growth potential it promises.
In closing, these strategic choices set the stage for investors seeking growth in the evolving market landscape. Shopify and The Trade Desk, each with its unique strengths and promising trajectories, offer a compelling narrative for those ready to navigate the unfolding bull market of 2024 and beyond.
Interested in making informed trading and investing decisions?
• Explore our Stock Investor service for insightful investing strategies. • If you are looking for dynamic trading experiences, check out Basic+ | Swing Alert, Option Income Alert, or our Trading Room. Sign up today for as little as $1 in the first month.
• Explore our Stock Investor service for insightful investing strategies.
• If you are looking for dynamic trading experiences, check out Basic+ | Swing Alert, Option Income Alert, or our Trading Room. Sign up today for as little as $1 in the first month.
Trading Risk Disclaimer
All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities. Always consult your financial advisor and/or tax pro before making substantial portfolio adjustments.