When many indexes reached new all-time highs in early 2024, investors were finally convinced that a new bull market was beginning. Some stocks are contributing to today's bull market, but those with wide moats and strong finances are rising. Two great growth stocks to buy in this bull market are these two.
1. Alphabet Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is a tech veteran, but its growth opportunity is far from over. The company's flagship search engine, Google, generates 40% of global digital advertising income. However, the digital advertising business is rising rapidly and is expected to reach $1.2 trillion by 2030. That implies a 16% compound annual growth rate from its current valuation.
Alphabet made $307 billion in 2023 and $74 billion net. These values rose 9% and 23% from 2022. Google Search advertising still generates most of the company's revenue. Alphabet's fourth-quarter revenue was $86 billion, with $48 billion from Google.
Search generates most of Alphabet's revenue, but other divisions are growing. YouTube reported $9.2 billion in advertising income in the fourth quarter of 2023, up 16% over the same time in 2022. Alphabet is also expanding into subscriptions. The subscriptions, platform, and devices division earned just under $11 billion in the fourth quarter of 2023, up 23% year over year.
The company is also making amazing AI progress. Alphabet's LLM chatbot, Gemini, works on mobile devices and data centers. Gemini comes with several levels and versions so businesses of all sizes can choose what suits them. Alphabet released Gemini 1.5 in February, just months after the first version. There are many use cases for these models, and Gmail and Google Docs currently employ Gemini.
Alphabet may consider an AI-powered search engine with a subscription paywall, according to a Financial Times article on April 3. Alphabet's longtime dominance in search engines drives its business. Growing its subscription offerings is a smart way for the company to diversify in a competitive field that is changing swiftly due to the AI explosion. Alphabet is still a classic buy-and-hold investment for long-term investors.
Second, Pinterest After an early epidemic growth spurt, Pinterest (NYSE: PINS) has had a rough few years. A slowdown in advertising spend, Pinterest's main source of revenue, has caused problems after the outbreak.
Investor interest in the business was hindered by poor revenue and user growth comparisons to the epidemic and a general slowdown. The tough economy has made companies more cautious with their advertising budgets, a tendency Pinterest can't influence but will recover slowly as macro conditions improve.
Pinterest's free website and mobile app inspire millions of people worldwide with recipes, travel, and home design, but marketers also utilize it for advertising. The company makes money by selling ad space to merchants in various industries and displaying those adverts as videos and images among the "pins" consumers browse for inspiration.
Pinterest has 498 million monthly active users worldwide in 2023, up 11% from 2022. Revenue was $3 billion, up 9% from 2022. ARPU grew 1% globally in the 12-month period. The U.S. and Canada saw 5% ARPU growth, Europe 15%, and the rest of the globe 17% last year.
The corporation declared a net loss for the year under GAAP, although it earned $7 million and $201 million in the third and fourth quarters of 2023. Investors are taking notice as the corporation slowly recovers from a succession of poor financial reports. Pinterest's price is up 30% from a year ago. Now may be a good moment to buy social media stock.
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