If you are one of the many investors thinking about what stocks to buy in 2024, you can't ignore the signs that a bull market may be on its way back. Should that affect how you shape your investments in the coming year? Yes and no.
On the one hand, your portfolio should be set up with a long-term focus, free of the vicissitudes of short-term market events. On the other hand, there are more and less attractive entry points for stocks, and an annual evaluation of a portfolio could lead to decisions about how to make a portfolio work better for you. If a bull market is coming, you want to use it to your advantage.
Growth stocks typically benefit in bull markets, when investors become more enthusiastic about growth prospects and the economy. If you're looking for some candidates to supercharge your portfolio in 2024, Amazon (AMZN 3.43%), Global-e Online (GLBE 2.44%), and Airbnb (ABNB 0.75%) are three excellent picks.
1. Amazon: More in store for 2024
The question with huge companies is always whether they're past their best days. There are the winners-keep-on-winning big companies, and then there are the soon-to-be-washed-up big companies. Some of the biggest and best companies from 10 years ago have seen their stocks stagnate or even dive.
Where does Amazon fit into all this? I put it squarely in the former category. Under the new management of CEO Andy Jassy, who is a career Amazonian, the company continues to push into new territory and maintain its lead in its current businesses.
Why do I think it could get even better in 2024? Amazon is leveraging significant investments in artificial intelligence (AI) to improve all areas of its business, from e-commerce to cloud computing to advertising. I typically raise my eyebrows at buzzwords, but AI is demonstrating its worth in offering real solutions for web developers, ad engagement, and more. Amazon is a leader in AI, giving it an edge as we start off the new year.
E-commerce is accelerating again, and management feels it's turning a corner in Amazon Web Services (AWS). It's back to double-digit sales growth and massive profits, and in 2024 Amazon could finally surpass its previous highs from 2021.
2. Global-e: A niche e-commerce superstar
The world is becoming smaller and smaller, and e-commerce makes it possible to reach consumers all around the globe. Companies that have a robust international presence, like Amazon, have a significant advantage over rivals. One of the most highly anticipated initial public offerings is Shein, a Chinese company that ships globally and has captured huge market share.
Small companies are often left out of this juicy opportunity, but they don't have to be. Global-e runs a platform that any e-commerce retailer can join to easily offer global online shopping. It takes care of all cross-border services, like instant shipping and customs calculations and localized checkout, as well as multiple currencies and delivery options.
It works with premier retailers like Macy's and Nordstrom, smaller brands like Tory Burch and Native Shoes, and any small business that wants to benefit from wider exposure. It also has a partnership with Shopify, which recently launched a Global-e-powered white label solution called Shopify Markets Pro.
It has been reporting strong double-digit revenue growth and improving profitability. As inflation moderates and shoppers begin to spend more, expect Global-e to forge more lucrative deals and see accelerating growth in gross merchandise volume.
3. Airbnb: A lesson in real disruption
Airbnb continues to redefine the travel experience. It has developed from a platform for hosts offering space in their apartments to a full travel platform with millions of rental options and experiences including trendy beach villas and European castles.
What makes it stand out more is that it offers complete flexibility for renters. Many travelers now use Airbnb for long stays of a month or more, even living in Airbnbs. But that's just one way Airbnb can quickly respond to changing consumer trends. It has an agile platform model, and it has consistently launched new "releases" with upgrades based on host and customer feedback. As more people find satisfaction and book, more people become hosts and add listings, and the company grows.
It went public at a curious time, when it was reporting high declines as the pandemic raged. But it recovered faster than many traditional travel companies since it could offer options within pandemic rules in many cases. It has since become sustainably profitable and cash-rich, and it's still reporting double-digit revenue growth.
Airbnb has a huge future ahead as it continues to change the industry, and it could soar in a bull market.
