2 Top Stocks That Could Explode in the 2024 Bull Market and Beyond

2 Top Stocks That Could Explode in the 2024 Bull Market and Beyond

The stock market has been a remarkable place for generating and sustaining significant returns over time. The performance of your individual portfolio will depend on how much you invest, how often and where you put your money to work.

Diversifying your investment capital across a wide range of companies and investing consistently when the market is up and down can increase your portfolio’s performance over the years. If you currently have cash to invest in stocks, here are two big names to consider in the new bull market.

1. Cinqur

Cinqrr (NYSE:FVRR) is trading down about 5% from last year, despite its business continuing to grow in a challenging operating environment and rapidly improving its financial results. THE artificial intelligence The boom is changing many sectors, and the world of freelancing is no exception.

Although some fear that tools and technologies like Generative AI will replace the need for talented freelancers, the future will likely be much more nuanced. These tools are far from perfect, and while some tasks can be completed entirely by AI, many require help from human expertise to deliver an exceptional end product.

Fiverr capitalizes on this vision. Over the past year-plus, the company has launched a series of AI-powered services, from a matchmaking service that helps businesses find the right freelancer to new gig categories focused on AI. The company has also focused on offering more complex services, i.e. those that may involve the use of AI but require a skilled human freelancer to do the work.

The growth of complex services, which include tasks such as financial advisory, AI development, and mobile application development, drives steady growth for Fiverr in a competitive environment. In the company’s first-quarter shareholder letter, management noted a boom in the number of AI services offered on the platform, which now include offerings such as AI avatar design and applications Custom GPT (Generative Pre-training Transformer). At last count, Fiverr had 10,000 AI experts on its marketplace.

Financially, Fiverr generated approximately $94 million in revenue in the first quarter of 2024, an increase of 6% from the same period of 2023. It also reported a net profit of 0. $8 million, compared to a net loss of $4.3 million in the previous year. quarter. This follows 2023, in which Fiverr generated annual net profit of just under $4 million, its first profitable year as a company.

Active buyers declined 6% year-over-year in Q1 2024, but spending per buyer actually increased 8% year-over-year. On top of that, Fiverr’s cohort of high-value buyers (those spending more than $500 per year) grew 4% in Q1 2024 on an annual basis.

Fiverr generated approximately $21 million in operating cash flow, a notable 57% increase over last year. It also continues to maintain its history of high gross margins, recording 83.5% in the most recent quarter, an increase of 130 basis points from a year ago. The company’s take rate (the share of each transaction made by Fiverr) stood at 32.3% at the end of last quarter, an increase of 190 basis points from the previous year.

While the company may face lingering doubts from investors about its ability to operate in a post-pandemic environment, there are plenty of red flags pointing to this activity. This could present an attractive buying opportunity for those with a suitable investment horizon.

2. Lyft

Things are getting better Lyft (NASDAQ:LYFT). Shares of the mobility app are up 76% from where they were a year ago — and about 14% more since the start of 2024. That’s a bit more than the S&P500The index’s performance so far this year, as the index trades up about 12% since the start of January.

Improving earnings and sales, along with overall strong growth numbers, appear to have renewed investor interest in this ride-sharing stock. At the same time, increasingly favorable cash flow figures, rapid expansion in Canada (its only international market at present) and a steady increase in bookings are all red flags for this company.

The ride-sharing market suffered significantly during the height of the pandemic. Companies like Lyft are working to get back on solid financial footing after this time, and as competition in the ride-sharing industry continues to intensify.

In 2023, Lyft reported that gross bookings and passengers reached an all-time high. The company delivered more than 700 million rides last year, while gross bookings increased 14% from 2022 to just under $14 billion. Revenue also rose 8% to $4.4 billion.

Fast forward to the most recent quarter, the first three months of 2024, and gross bookings jumped 21% year over year to $3.7 billion. Lyft generated $1.3 billion in revenue during the quarter, a healthy 28% increase from the year-ago period.

It also delivered 188 million rides in three months, a 23% year-over-year increase. Active riders, meaning riders who take at least one ride during the quarter with Lyft, increased 12% year over year to 21.9 million.

Although the company still reports a net loss under generally accepted accounting principles (GAAP), that figure fell to $31.5 million from $187.6 million in the same quarter of 2023. Lyft also generated 59 .4 million dollars in adjusted earnings before interest and depreciation. and depreciation (EBITDA), an increase of 162% compared to a year ago.

The first quarter of 2024 was Lyft’s second consecutive quarter to generate positive free cash flow. This figure rises to $127 million, following the previous quarter’s figure of $14.9 million. Management also said the company expects to generate positive free cash flow for the full year 2024. There are plenty of reasons to like how this stock is doing, and long-term investors might find it worth undertaking for a multi-year purchase. and hold the position.

Should you invest $1,000 in Fiverr International right now?

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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool fills jobs and recommends Fiverr International. The Motley Fool has a disclosure policy.

2 Top Stocks That Could Boom in the 2024 Bull Market and Beyond was originally published by The Motley Fool

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