What Are the Top 3 Stocks of 2024 and How Did They Soar to the Spotlight?

2024 Top Stocks - What fueled their growth and why theyre dominating the market spotlight!

Dec 31 2024

The U.S. stock market continued its impressive run in 2024, with the S&P 500 gaining 24% and the NASDAQ climbing 30%. While NVIDIA (+177%) remained a standout performer, three stocks soared to even greater heights: AppLovin, MicroStrategy, and Palantir. These companies captured the two dominant investor trends of the year—artificial intelligence (AI) and Bitcoin. However, the top stock of 2024 might come as a surprise.

AppLovin: A Remarkable +718% Return

Once valued at under $10 billion, AppLovin $APP now boasts a market capitalization of $109 billion. The digital advertising company has leveraged machine learning to revolutionize targeted marketing, tailoring campaigns to the specific needs of its clients.

AppLovin’s revenue grew by 43% in the first three quarters of 2024, totaling $3.3 billion. Earnings are projected to surge by another 45% in 2025. What truly sets AppLovin apart, however, is its ability to monetize AI effectively—a feat that has eluded many tech giants.

While companies like NVIDIA and AMD have driven AI’s hardware revolution, AppLovin has found a way to turn this technology into a profitable service. Its AI models analyze products and audiences to craft highly personalized ad campaigns, a game-changer for the digital advertising industry.

Initially focused on mobile gaming, AppLovin’s AI-driven strategies helped developers boost in-game purchases. The real breakthrough, however, came with its expansion into e-commerce advertising. Analysts believe AppLovin could dominate this $120 billion market—more than double the size of its original gaming niche.

Despite a 20% pullback in December due to its exclusion from the S&P 500 index, analysts like Tim Nolan from Macquarie Equity remain optimistic, forecasting a price target of $450 (+38%). AppLovin’s innovative approach has attracted substantial ad budgets, with some clients allocating 25–30% of their spending to the platform.

MicroStrategy: Riding Bitcoin’s Surge +380%

Once a software company, MicroStrategy $MSTR has reinvented itself as the world’s largest Bitcoin holder, owning approximately $42 billion worth of the cryptocurrency.

Investing in MicroStrategy is essentially a leveraged play on Bitcoin’s future. The company borrows extensively to acquire Bitcoin, positioning itself as a major beneficiary if the cryptocurrency becomes a mainstream currency. This strategy gives investors a way to gain indirect influence over Bitcoin’s price movements.

While risky, this bold move has paid off handsomely in 2024, as Bitcoin’s resurgence pushed MicroStrategy’s stock up nearly fourfold.

Palantir: The New Face of Enterprise AI +350%

Palantir $PLTR, a leader in AI-powered solutions for governments and defense organizations, also had a stellar year, growing its market cap to $175 billion.

Palantir’s AI technology is not just another platform; it’s purpose-built to tackle complex organizational challenges. From workforce management to threat analysis, its systems transform massive datasets into actionable insights, offering a unique advantage in the competitive AI landscape.

In Q3, Palantir reported $725.5 million in revenue (+30% YoY) and $0.10 EPS, beating analysts’ expectations. Despite these solid results, skeptics argue its high valuation—162x forward earnings—rests more on speculation than fundamentals.

Optimists like Dan Ives of Wedbush see 2025 as a breakthrough year for enterprise AI, with businesses significantly increasing their AI budgets. Whether Palantir can maintain its momentum depends on its ability to deliver on these high expectations.

What’s Next for These Winners?

2024 demonstrated the immense potential of AI and cryptocurrency as transformative forces in the market. AppLovin emerged as the clear winner by creating tangible value from AI, while MicroStrategy and Palantir capitalized on their respective niches.

As we head into 2025, these stocks remain on the radar for their innovative approaches and their ability to tap into emerging trends. However, high valuations mean that continued growth will be critical to sustaining investor confidence.

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Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.