The S&P 500 inched slightly higher on Thursday to hover just below its all-time highs. The bulls appear ready to send the benchmark index to new highs during the Santa Claus rally period.
That said, stocks will likely face selling pressure at some point in the coming weeks after the market-wide December surge capped off a fantastic 2023.
The Potential for Growth Tech Stocks in 2024
Stocks and indexes always come back down to key moving averages. Thankfully, the dips might be scooped up quickly as more investors big and small chase returns in 2024 as rates fall.
The three top-ranked growth tech stocks we explore today are trading at least 50% below their all-time highs heading into 2024. Investors might want to have these three stocks on their radar as many big tech stocks sit near fresh records.
Upwork: Connecting the Future of Freelance Work
Upwork is a standout in the world of freelance work, connecting businesses of all shapes and sizes with people around the world. Upwork is a former remote-work and Covid rally superstar that’s slowly making a comeback as the economy and interest rate environment normalize.
Upwork like many former growth-at-all-cost firms is focusing more on the bottom line. The firm has topped our adjusted earnings estimates in the trailing four quarters, including a 91% Q3 beat.
Upwork stock climbed 45% in 2023, including some huge swings. UPWK is trading above its 21-day, 50-day, and 200-day moving averages right now. Yet it has pulled back from overbought RSI levels and it trades roughly 75% below its record highs at around $15 per share. Upwork’s Internet – Services unit lands in the top 14% of over 250 Zacks industries and its balance sheet is strong.
Shopify: Redefining the Future of Commerce
Shopify provides what it has dubbed the “essential internet infrastructure for commerce.” The firm helps companies with everything from site design and sales to marketing, payments, shipping, and more.
Shopify’s days of 60% growth are over, which makes sense because those figures are unsustainable as its yearly revenue starts inching toward $10 billion and its customer acquisitions slow in a more saturated market. Shopify made up for slowing expansion by raising its prices in 2023 for the first time in over a decade.
Despite the huge comeback, Shopify still trades over 50% below its all-time highs. The stock currently trades above its 21-day, 50-day, and 200-day moving averages. SHOP is on the cusp of retaking its 200-week moving average, having found support near its 50-week level in late October.