2023's Top Dogs: Nvidia, Meta Lead S&P 500 Charge In Tumultuous Year — But Which 'Magnificent Seven' Stock Will Be 2024's Runaway Winner?
Portfolio Pulse from Shanthi Rexaline
The S&P 500 is set to end the year with a 24.6% gain, led by Nvidia and Meta Platforms with YTD gains of 239% and 198%, respectively. Other top performers include Royal Caribbean, Builders FirstSource, Uber, Palo Alto Networks, and Tesla. The 'Magnificent Seven' mega-cap tech stocks, including Amazon, Alphabet, Microsoft, and Apple, also saw significant gains. Analysts predict smaller tech companies may outperform large-caps in 2024, with the iShares Russell 2000 Growth ETF potentially outperforming the SPDR S&P 500 ETF Trust. Tesla could maintain its market share despite pessimistic expectations, and a potential Federal Reserve rate cut in 2024 may increase risk appetite and draw investors back into the stock market.
December 29, 2023 | 11:02 am
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POSITIVE IMPACT
Builders FirstSource secured a 160% YTD gain despite a slow housing market recovery.
BLDR's strong performance in a challenging housing market indicates investor confidence, which may continue to positively impact its stock in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
The iShares Russell 2000 Growth ETF is predicted to outperform the SPDR S&P 500 ETF Trust in 2024, according to analyst Gene Munster.
The prediction by analysts that smaller tech companies may outperform large-caps in 2024 could lead to increased investor interest in IWO, potentially impacting its price positively in the short term.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Meta Platforms saw a 198% YTD gain, benefiting from a rebound in ad spending and successful efficiency measures.
Meta's substantial YTD gain and its recovery in ad spending, along with the success of Reels, indicate a positive short-term outlook for the stock.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Nvidia leads the S&P 500 with a 239% YTD gain, driven by its AI accelerator chipsets.
Nvidia's significant YTD gain and its position at the forefront of AI technology suggest continued investor interest and potential for further stock appreciation in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Palo Alto Networks, a security software company, had a 112% YTD gain due to strong fundamental performance.
Palo Alto's position as the ninth best-performing S&P 500 stock, driven by strong fundamentals, suggests a continued positive short-term trajectory for its stock.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Royal Caribbean Cruises Ltd. experienced a 163% YTD gain, capitalizing on the resurgence in travel and leisure.
The cruise line's rebound from COVID-19 disruptions and the resurgence in travel suggest a positive short-term impact on RCL's stock price.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust ended Thursday's session up 0.09% at $476.69, with potential for increased investor interest in 2024.
The positive performance of the S&P 500 and the potential for a rate cut by the Federal Reserve in 2024 could increase risk appetite, leading to a positive short-term impact on SPY.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Tesla Inc. ended the year as the tenth best-performing S&P 500 stock with a 106% YTD gain.
Despite a mixed performance throughout the year, Tesla's strong finish and potential for increased volume and margin improvements suggest a positive short-term impact on its stock.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Uber Technologies Inc. saw a 155% YTD gain, with a notable rise after its S&P 500 inclusion news.
Uber's steady gains throughout the year, especially after S&P 500 inclusion news, suggest a positive short-term impact on its stock price.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 85