Nasdaq's Surge in 2024: Two Tech Stocks to Secure Before the Rally

The Nasdaq Composite has made an impressive comeback, surging by 43% in 2023.  This is following its worst performance in over a decade.

As we enter a new year, many investors reflect on the stock market’s performance in the past year and its implications for the future. Fortunately, there is much to be optimistic about. 

Investors understandably ponder what to anticipate in 2024 after such a substantial increase and lingering economic uncertainties. Turning to historical patterns for guidance reveals encouraging news. 

Since the Nasdaq’s inception in 1972, every year following a bear market recovery has seen the tech-focused index achieve an average return of 19%. While the results have varied, from 7% in 1986 to 38% in 2013, the data suggests a favorable outlook for Nasdaq gains in 2024.

Should the Nasdaq indeed experience a surge in 2024, two tech stocks stand out as wise additions to one’s portfolio:

HubSpot: Elevating CRM Strategies

HubSpot (NYSE: HUBS), synonymous with inbound marketing, has evolved into a comprehensive customer relationship management (CRM) solutions provider for small- and medium-sized businesses. 

Beyond marketing, the company now offers sales, service, content management, operations, and commerce tools accessible through a unified dashboard. HubSpot’s artificial intelligence (AI) integration enhances user productivity and content relevance.

HubSpot demonstrated robust financial growth in the third quarter, with total revenue increasing by 28% YoY to $558 million. This is despite not yet being profitable due to substantial investments in market expansion,

Client metrics underscore its solid performance, including a 22% year-over-year growth in total customer count and a 3% climb in average subscription revenue per customer. 

HubSpot remains a compelling growth opportunity, even at 9 times next year’s sales. Its current market opportunity is estimated at $51 billion, expanding to $77 billion by 2028.

Snowflake: Unleashing Data Value

Snowflake (NYSE: SNOW) addresses data management challenges in the cloud era.  It provides tools for gathering and analyzing business data and generating actionable insights. 

In the fiscal 2024 third quarter, the company reported a 32% year-over-year growth in revenue to $734 million, with strong product revenue growth at 34%.

While not yet profitable on a GAAP basis, Snowflake’s robust operating and free cash flow suggest imminent profitability. Key customer metrics indicate a solid foundation, including a 24% year-over-year growth in the total number of customers and a 52% increase in high-spending clients.

Management projects accelerated growth, forecasting $2.65 billion in revenue for fiscal 2024 and aiming for $10 billion by fiscal 2029. 

Snowflake presents a compelling investment due to its impressive revenue growth of over 900% since late 2019. Its massive market opportunity is estimated to reach $290 billion by 2027.