In recent weeks, the US stock market has experienced a remarkable resurgence, reaching its highest levels since early August.
This upward surge can be attributed to a renewed sense of optimism among investors, fueled by a noticeable easing of macroeconomic challenges such as inflation and labor market uncertainties. The result has been a heightened appetite for risk assets, propelling the market to new heights.
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Which stocks saw the strongest gains in November?
As highlighted by Bloomberg’s newscaster Jon Erlichman, five stocks that witnessed the strongest gains in November include streaming device maker Roku (NASDAQ: ROKU), crypto exchange Coinbase (NASDAQ: COIN), real estate company Opendoor (NASDAQ: OPEN), financial technology firm Block Inc (NYSE: SQ), and e-commerce giant Shopify (NYSE: SHOP).
Apart from the broader market rally’s momentum, Roku’s strong gains in the past month were primarily driven by the company’s solid Q3 2023 earnings report. The highlights of the report were a year-over-year revenue increase of 20% to $912 million, above Wall Street’s expectations, and an increase in the number of active accounts to 75.8 million for the quarter.
As a result, ROKU jumped roughly 75% in November to $104.17 as of December 1.
Simultaneously, cryptocurrency exchange Coinbase posted similarly impressive gains in the last month. Notably, COIN jumped 62% during the month, capitalizing on the recent bullish momentum in the crypto market.
To be more specific, Coinbase is among the companies eagerly anticipating developments on Bitcoin (BTC) and Ethereum (ETH) spot exchange-traded fund (ETF) decisions. In fact, the company is set to be the custodian or surveillance partner for a number of ETF issuers, most importantly BlackRock.
Rounding up the top 3 stocks by November performance is Opendoor, an online company that trades residential real estate.
The firm experienced a 58% surge in its stock value in November, fueled in part by a favorable turn of events in the real estate sector. Earlier in the month, the Bureau of Labor Statistics reported lower-than-expected inflation numbers for October.
Although this doesn’t immediately signal a decline in mortgage rates, it instills confidence in active homebuyers that the housing market is on a positive trajectory.
Block, Shopify soar over 50%
Akin to Roku, the bulk of Block Inc.’s November gains came after its earnings report for the fiscal Q3 2023.
Notably, Jack Dorsey’s fintech company reported third-quarter results that topped Wall Street’s estimates on top and bottom lines. In addition, the report demonstrated solid revenue growth in both Cash App and Square, Block’s two flagship payment apps.
Shares of Block soared 58% last month, sitting at $63.43 apiece as of December 1.
Last but not least on this list is Shopify. The e-commerce platform thrived on the recent Thanksgiving week, registering record-breaking sales on the recent Black Friday. According to Shopify, its merchants generated a whopping $4.1 billion in sales on Black Friday alone, up 22% from the same day last year.
As a result, the stock recently hit a 52-week high, bringing its November and year-to-date gains to 54% and 105%, respectively.
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