Tesla – Leading the EV Revolution
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Tesla (NASDAQ:TSLA) stands out among the growth stock behemoths as a trailblazer in the electric vehicle domain. The company’s recent financial performance underscores its potential for extensive long-term growth.
In 2023, Tesla posted a record net income of $15 billion (GAAP), including a noteworthy $7.9 billion in Q4 alone, marking an impressive 115% year-over-year growth. The non-GAAP net income also shone at $10.9 billion.
With a robust operating cash flow of $13.3 billion and free cash flow of $4.4 billion, coupled with cash and investments swelling to $29.1 billion, Tesla is well-positioned for exponential growth. The company’s financial stability forms a solid foundation for future opportunities.
Furthermore, Tesla’s release of the Full Self-Driving Beta V12 leverages artificial intelligence to enhance vehicle autonomy, illustrating the company’s advancements toward achieving fully driverless functionality. Additionally, collaborations with SpaceX and The Boring Company fuel cross-industry innovation, stimulating further growth within Elon Musk’s interconnected ventures.
Despite economic challenges, Tesla’s prudent cost management lowered its cost of goods sold per vehicle to just over $36,000 in Q4, ensuring profitability and competitiveness. This focus on cost discipline solidifies Tesla’s position as a top-tier growth stock.
Alphabet – Championing Innovation and Growth
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Alphabet (NASDAQ:GOOGL, NASDAQ:GOOGL), the parent company of Google and other cutting-edge technology ventures, has showcased strong financial performance positioning it as a growth stock powerhouse. In 2023, Alphabet recorded $307 billion in total revenue, a 10% increase from the previous year, with operating income rising 10% to $84 billion.
The growth trajectory has been fueled by Google’s core advertising segment, along with robust performances from YouTube and Google Cloud. Google’s advertising revenues surged by 13% in 2023, while YouTube witnessed a rapid 16% year-over-year growth. Notably, Google Cloud’s revenues skyrocketed by 26% to over $36 billion in annual run rate.
Alphabet’s significant investments in artificial intelligence (AI) to propel future growth have been highlighted by the integration of its new AI model, Gemini, into core Google products like search. With over 70% of leading AI startups leveraging Google’s cloud platform, Alphabet’s continued dominance in digital advertising and cloud computing, coupled with strong financial results, positions it as an appealing long-term growth stock.
MercadoLibre – The Powerhouse of Latin American E-commerce
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MercadoLibre (NASDAQ:MELI) has carved a niche for itself as the preeminent e-commerce and financial technology platform in Latin America, often dubbed the “Amazon of Latin America.” Operating the largest online marketplace and fintech ecosystem in the region, MercadoLibre’s recent financial results affirm its status as a top growth stock.
In Q4 2023, MercadoLibre achieved a remarkable currency-neutral revenue growth of 42% year-over-year – its most rapid expansion since Q3 2022. For the full year 2023, total revenues reached nearly $14.5 billion, reflecting a stellar 37% growth over 2022 and more than a six-fold increase since 2019.
The company’s ecommerce platform demonstrated strong growth, with gross merchandise volume expanding by 79% and the number of items sold increasing by 29%. Additionally, the fintech division displayed an impressive 153% growth in total payment volume, underscoring MercadoLibre’s operational prowess.
By focusing on strategic initiatives like expanding logistics capabilities and enhancing the credit portfolio, MercadoLibre has further bolstered its market position, attracting 54.4 million unique buyers by the end of 2023. With robust cash flow and a proven track record in Latin America’s thriving e-commerce and digital payments markets, MercadoLibre emerges as a compelling growth stock choice for savvy long-term investors.
On publication date, Andrea van Schalkwyk held a long position in GOOGL. The views expressed in this article are those of the writer and are subject to InvestorPlace.com Publishing Guidelines.
Andrea van Schalkwyk, a seasoned value investor, embraces the principles of Warren Buffett and Benjamin Graham. Holding an MEng from the University of Padua and an Executive MBA from CUOA Business School, Andrea is dedicated to prudent investment strategies.
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The article “3 Growth Stocks That Deserve a Spot in Every Investor’s Portfolio” was first published on InvestorPlace.
The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.
