As we commence a new year, investors are reflecting on the stock market performance in the past year, finding optimism in the Nasdaq Composite’s rebound. Following its worst performance in over a decade, the Nasdaq surged by 43% in 2023. However, given the substantial increase and lingering economic uncertainties, investors are naturally contemplating what lies ahead in 2024. Historical analysis provides encouraging insights, particularly for the Nasdaq.
Since its first full year of trading in 1972, the Nasdaq, following a bear market recovery, has consistently yielded average returns of 19% in the subsequent year. While the outcomes have varied, ranging from a 7% increase in 1986 to a 38% surge in 2013, the data suggests a favorable likelihood of Nasdaq gains in 2024.
Should the Nasdaq indeed experience substantial growth in 2024, two tech stocks stand out as potential additions to your portfolio in anticipation of this upswing.
HubSpot (HUBS -1.57%) is renowned for pioneering inbound marketing under the leadership of CEO Brian Halligan. This approach focuses on attracting potential sales leads by creating valuable content that customers can discover and utilize, contrasting with aggressive methods like banner ads and unwanted emails. HubSpot has evolved from its origins and now offers a comprehensive suite of customer relationship management (CRM) solutions tailored for small- and medium-sized businesses. Its offerings span marketing, sales, service, content management, operations, and commerce, consolidated into a single dashboard. the stock market performance
Beyond its diverse services, HubSpot has integrated artificial intelligence (AI) tools across various aspects of its platform, enhancing user productivity and facilitating the creation of more relevant content. In the third quarter, the company achieved a remarkable 28% year-over-year growth in total revenue, reaching $558 million. While HubSpot is still in an investment phase for market expansion, it has significantly reduced its net loss to $5.5 million, an 82% improvement. The company consistently generates strong operating and free cash flow, indicating a path towards sustained profitability.
HubSpot’s financial success is reinforced by robust client metrics. The total customer count reached 194,000, marking a 22% year-over-year increase, and the average subscription revenue per customer rose by 3%. This combination of financial performance and customer metrics positions HubSpot as a formidable player in the CRM space, showcasing its ability to adapt and thrive in the dynamic landscape of digital marketing and customer relations.