The tech-heavy Nasdaq-100, which tracks the 100 largest nonfinancial companies in the Nasdaq Composite, is set to wrap up a remarkable 2024 with a 28% gain.
The widespread adoption of artificial intelligence across industries, coupled with the crypto market’s revival fueled by the launch of spot Bitcoin (BTC) exchange-traded funds (ETFs), pushed several stocks to record-breaking heights.
As the final trading day of 2024 unfolds, here are the top three Nasdaq-100 performers that shaped the market this year.
Picks for you
AppLovin (NASDAQ: APP)
AppLovin (NASDAQ: APP) has solidified its place as one of the top success stories of 2024, with its market cap soaring from $13 billion at the start of the year to over $110 billion. Shares have surged 766%, making it the best-performing stock in the tech sector.
This remarkable growth stems from the company’s pivot to AI-driven online advertising, supported by robust financial results.
In November alone, AppLovin shares jumped 98% after delivering a Q3 financial report that exceeded expectations.
The company reported a 39% year-over-year revenue increase to $1.2 billion and adjusted EPS of $1.25, far exceeding Wall Street’s estimates of $1.13 billion in revenue. A key driver of this growth was the AXON 2.0 ad search engine, which fueled a 66% surge in software platform revenue.
As of the market close on December 30, the stock was trading at $335.38, marking a modest 1.5% decline for the month. With a forward P/E ratio of 60, AppLovin remains a high-growth play, but its lofty valuation signals that investors are betting heavily on its continued expansion.
MicroStrategy (NASDAQ: MSTR)
MicroStrategy (NASDAQ: MSTR) continued its extraordinary rise in 2024, with its stock surging 342%, driven by the company’s aggressive Bitcoin-buying strategy. This bold approach has transformed the firm from a mid-tier software vendor into the fourth-largest holder of Bitcoin, with over 446,400 BTC valued at nearly $41.4 billion.
In late November, MicroStrategy executed its largest-ever Bitcoin purchase, investing $5.4 billion to further solidify its position in the cryptocurrency space. Consequently, its market cap has skyrocketed from $1.1 billion in 2020 to an impressive $74.18 billion today.
Adding to this momentum, Trump’s election victory in November provided a significant boost, with MicroStrategy’s stock rising 36% as Bitcoin also gained traction.
However, potential risks are now emerging. The company has proposed issuing $11 billion in new shares, a move that, if approved, could significantly dilute equity. While previous capital-raising efforts have been well-received, this ambitious plan could test investor confidence and impact the stock’s long-term trajectory.
As of the market close on December 30, MSTR shares were trading at $302.96, reflecting a 20% decline over the past month but maintaining a strong 121% gain over the past six months.
The company’s future will remain closely intertwined with Bitcoin’s performance in 2025, with price targets projected to range between $200,000 and $350,000. While MicroStrategy’s rise has been remarkable, the ongoing volatility of the cryptocurrency market continues to present significant challenges.
Palantir (NASDAQ: PLTR)
Palantir (NASDAQ: PLTR) had a standout 2024, with its stock surging 365%, driven by strong earnings and heightened demand for AI solutions. In November, the company raised its revenue outlook and delivered third-quarter results that exceeded Wall Street expectations, propelling the stock 23% higher.
However, concerns over valuation loom large, with some analysts cautioning that the stock’s current price may already account for much of its future growth potential. Dan Ives of Wedbush Securities, who dubbed Palantir the “Messi of AI,” remains bullish, citing its strong leadership in the AI sector.
In contrast, analysts from Mizuho and William Blair have taken a more reserved approach, flagging risks related to revenue projections and stretched valuation.
Palantir shares closed the latest trading session at $77.18, reflecting an impressive 198% gain over the past six months. As the company looks ahead to 2025, its ability to meet ambitious growth targets will be pivotal in maintaining its upward trajectory and justifying its lofty valuation.
While 2024 has set a high bar, investors are eagerly watching to see which companies will seize new opportunities, overcome emerging challenges, and lead the charge in the tech sector.
Featured image via Shutterstock
