The year is coming to a close, and what a year it has been for the stock market. According to this text, the S&P 500, NasdaqcombinedAnd DowJonesindustrialaverage 26%, 28% and 19% respectively are higher.
That said, there are many growth stocks that are far from the benchmark index and may be worth considering for the long term. Here are three things investors should know.
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Firstabove Streaming is huge Spotify(NYSE: SPOT ).
The company, which runs the most popular music-streaming app in the world, continues to impress markets with its growth. In its most recent quarter (the three months ending September 30), Spotify reported 640 million monthly active users (MAUs), up 11% from 574 million MAUs a year ago.
Additionally, the company’s paid subscribers grew 12% to 252 million. Arguably, paid customers are an even more important one Fig For Spotify, because subscription fees make up 88% of the company’s total the revenue.
On the same the time As the company has shifted its overall MAUs to paying customers, management has also cut costs. Accordingly, Spotify’s profits have increased. The company gave the information Operating income of 454 million euros, compared to just 32 million euros a year earlier.
In short, Spotify is giving growth-oriented investors what they want to see. The company’s user base, revenue, and profits are all expanding, as Spotify continues to tap into new markets and grow its subscriber base. This is a recipe for continued success, so investors should consider this as a long-term buy and hold stock.
Next, there is Reddit(NYSE: RDDT ).
Reddit launched just under a year ago via an initial public offering (IPO). Still, as of this writing, the stock is up an incredible 180%.
It’s all thanks to Reddit big Three financial parameters:
Strong revenue growth
Strong user growth
Sky-high gross margins
Starting with revenue, Reddit increased its quarterly revenue (for the three months ending September 30) to $348 million — a 68% year-over-year increase. Similarly, the company’s daily active uniques (DAUqs) grew 47% to 97 million.
This is rapid growth, and, best of all, the company is capitalizing on it increase By increasing its profits. Gross profit margin jumped to 90% in its most recent quarter — the best ever ever for the company, and up 200 basis points over the same period a year ago.
Admittedly, Reddit is a newcomer to the stock market, but its first year as a public company has been remarkable. Growth-seeking investors may want to consider this highflyer as a long-term buy-and-sell candidate, given its solid growth and high profit potential down the road.
Last, there is nvidia(NASDAQ: NVDA ).
obviously, Nvidia has enjoyed a good run; It is already the second largest company in the world (as of this writing) with a market cap of $3.3 trillion.
he said, There are reasons to believe that Nvidia stock can still go higher.
FirstConsider the company’s most recent earnings report (for the three months ending October 27). Nvidia reported Indeedamazing number; Revenue grew 94% year-over-year to $35 billion. Keep in mindThat is $35 billion quarterly Revenue — but it is roughly equivalent to annual the revenue For iconic companies like visa, NetflixAnd starbucks.
What’s more, Nvidia’s sales have reached these incredible heights in just a few years. for example, In the same period Two years ago, Nvidia reported revenue of less than $6 billion.
In other words, demand-level growth for artificial intelligence (AI) chips has been staggering. apart from, It is no expected to Ends anytime soon.in addition to Nvidia reported excellent resultsCompany leadership also provided guidance that exceeded expectations. In summary, management expects future sales of the company’s Blackwell AI chips to be even stronger than previously forecast.
To close, Nvidia’s dominant role in the AI ecosystem makes it a compelling choice for investors looking for buy-and-hold stocks in the AI sector.
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Jake Lerch There are positions in Nvidia, Reddit, Spotify Technologies, and Visa. The Motley Fool has recommended positions in Netflix, Nvidia, Spotify Technologies, Starbucks, and Visa. The Motley Fool has a Disclosure Policy.
