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April, a month traditionally associated with seasonal rebirth and renewal, is also an opportune time to delve into the realm of growth stocks that promise significant returns. Despite the unpredictable nature of the stock market, certain companies stand out for their consistent performance and potential for high growth.
As the tech industry continues to burgeon with innovation, buoyed by the expansive waves of artificial intelligence, it’s easy to feel as though one may have missed the boat. However, amidst the vast sea of investment opportunities, there are several established growth stocks that stand out as fiery heavyweights, poised for significant industry disruption.
Let’s embark on a journey to uncover the top three scorching growth stocks to consider adding to your portfolio in the month of April!
Meta Platforms (META)
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Meta Platforms (NASDAQ:META) is a giant in the technology realm, leading the charge in the AI revolution. With substantial investments in generative AI and the metaverse, the company is well-positioned to capture new revenue streams in 2024.
As one of the largest technology firms globally, Meta owns prominent subsidiaries like WhatsApp and Instagram. Earlier this year, the company surged past the $1 trillion market cap milestone, propelled by significant restructuring efforts in 2023 and strategic investments in generative AI. Additionally, the impending release of their new LLM, Llama 3 in July 2024 has piqued investor interest, underscoring the company’s intensified focus on AI investments.
In the fiscal year 2023, Meta witnessed a striking surge in key growth metrics and profitability. Revenue soared by 16% year-over-year to $134.9 billion. Earnings per share saw a remarkable 73% increase to $14.87, accompanied by a record-setting free cash flow of $44 billion. With ongoing initiatives to foster growth, including planned CAPEX within the $30-$37 billion range, Meta stands out as a top contender among the sizzling growth stocks to purchase in April.
Palantir (PLTR)
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Palantir (NYSE:PLTR) has emerged as a prominent player in the AI space, capturing widespread attention amongst investors. Having achieved its first full year of GAAP profitability in the past year, the company is poised for continued growth throughout 2024.
Famed for its technology prowess in supplying big data and machine learning models to government entities such as the FBI, CIA, NSA, and the U.S. Department of Defense, Palantir is now expanding its commercial endeavors. This shift has resulted in accelerated revenue growth as it diversifies its revenue streams.
In Q4 2023, Palantir witnessed a robust 70% year-over-year growth in commercial revenue, reaching $131 million. The company’s AIP is gaining traction, catering to various sectors leveraging its platform. With expectations of an S&P 500 inclusion looming on the horizon, a milestone that could serve as a significant catalyst, CEO Alex Karp anticipates another year of profitable expansion in the fiscal year 2024.
Spotify (SPOT)
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Spotify (NYSE:SPOT) represents a hidden gem among growth stocks in 2024. As the world’s premier music streaming platform boasting over 600 million monthly active users, Spotify’s growth trajectory is nothing short of extraordinary.
In recent years, Spotify has expanded its content offerings to include podcasts and exclusive audio content, attracting new users and enhancing user engagement and retention. Leveraging artificial intelligence to drive personalized experiences has further propelled revenue growth.
In Q3 2023, Spotify surprised the market by declaring a profit of $0.33 per share, signaling a pivotal inflection point for the business. The company’s gross margins continue to expand, and premium subscriber growth remains robust. Moreover, Spotify’s free cash flow soared to $674 million in the fiscal year 2024. With sustained double-digit growth in monthly active users, Spotify stands out as a scorching growth stock to acquire in April.
As of the publication date, Terel Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed herein are solely those of the author, in accordance with the InvestorPlace.com Publishing Guidelines.
Terel Miles, a contributing writer at InvestorPlace.com, brings over seven years of experience in navigating the financial markets.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
