3 growth stocks that increased in 2019 (and could increase in 2020)

Wall Street's most important indices are on track to reach 2019 at record-high levels of all time, driven by improved investor sentiment on progress in the US-China trade conflict, three Federal Reserve interest rate cuts and optimism with which the economy recession does not slip.

The benchmark climbed by almost 28% for the year to date, which would mean the second best annual performance for the index since 1997.

While Wall Street is ready to close the curtains for what appears to be a banner year, here are three growth stocks that have taken the lead and are set up for an explosive 2020:

Roku: + 375% in 2019

Roku (NASDAQ 🙂 shares have risen to amazing levels , making it the best performing company among companies with a market capitalization of more than $ 10 billion. The stock closed Tuesday at $ 145.57 – not far from the highest point of $ 176.55 ever reached on September 9 – after the start of the year at $ 29.82. The company based in Los Gatos, California has a market capitalization of approximately $ 17.1 billion.

The pioneer of the streaming media platform has grown thanks to the rapid growth of users, which translated into higher advertising revenues. From that moment on, Roku's active account increased by 36% compared to the same period a year earlier to 32.3 million. Those accounts spent 10.3 billion hours on streaming via the Roku hub, an increase of 68% on an annual basis.

Further substantiation of optimism, the average revenue per user clocked with a double-digit percentage boost in Q3, rising 30% Y-o-Y.

Despite robust profits this year, Roku's stock remains attractive in the future, given the strong demand for its media platform, making it one of the big winners in the streaming revolution.

Shopify: + 188% in 2019

Shopify (NYSE 🙂 stock rose to new levels in 2019. Shares of the Canadian e-commerce software specialist, who started the year at $ 134.00, ended Tuesday's session at $ 399.39, in sight from a record high of $ 409.61 on August 27. The company, which helps merchants set up online stores and manage their brands by offering a digital payment platform and shipping options, has a market capitalization of around $ 46 billion.

Shopify benefits from the rising popularity of e-commerce and has enjoyed it on its payment network. According to Adobe Analytics, American consumers have spent more money this year than ever before.

The e-commerce software platform released blockbuster Black Friday and Cyber ??Monday sales figures, announcing in a press release on December 3 that its sellers were selling more than $ 2.9 billion worth of goods and services during the four-day holiday shopping weekend, a huge increase of more than 61% compared to the same period last year.

Another interesting factor for investors is that mobile remains the dominant sales channel, with 69% of purchases via Black Friday and Cyber ??Monday on a telephone or tablet, while 31% were handled on a desktop computer.

We expect the positive trend to continue in 2020 thanks to the status of Shopify as a leading name in the e-commerce software sector with more than 1 million traders in 175 countries on the platform.

Advanced micro-devices: + 152% in 2019

Advanced Micro Devices (NASDAQ 🙂 shares rose in 2019 and are positioned to rise further. The share of the semiconductor giant closed on Tuesday at a 20-year peak of $ 46.54, in view of the highest point of $ 48.50 ever reached during the peak of the dot-com bubble in June 2000. At the current levels, the company has a market capitalization of $ 51.1 billion.

A key factor for investor confidence: the ability of the chip manufacturer to continue to gain market share in the space for central processing units (CPUs) at the expense of its larger rivals. AMD competes with Intel (NASDAQ 🙂 in the creation of CPUs for PCs and servers. It also competes on NVIDIA (NASDAQ 🙂 in the market for graphic processing units for PCs, game consoles and data centers.

The stock has also been boosted by signs of an increased demand for chips used in game consoles. The Santa Clara, California-based company has recently won contracts for the supply of chips to both Microsoft's (NASDAQ 🙂 Xbox Series X console and Sony's (NYSE 🙂 PlayStation 5 game system, both planned for launch in the coming year.

To show how robust the demand for its chips is, the semiconductor company booked its best quarterly revenue since 2005, when it reported the latest in October.

Taking all this into account, AMD remains one of the most promising names in the sector entering 2020, as the market share of its competitors continues to be withdrawn.

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