In this article, we will discuss the 10 best-performing NASDAQ stocks in 2024.
Market Expectations for the Year-End
Fed’s recent cut has resulted in significant outperformance in the tech sector, signaling a positive sentiment among investors. Tech stocks are thriving in this lower interest rate environment, which has contributed to a broader market rally. The strength of small-cap stocks and cyclical sectors was noticeable even before the reduction, suggesting that market confidence was building. Analysts expect ongoing growth driven by advancements in AI, which continues to be a key theme influencing investor behavior.
The occurrence of rate cuts while markets are at record highs raises important questions about potential volatility. Historically, markets have shown resilience and often continue to rise even when rate cuts occur near market peaks. This suggests that much of the current optimism may already be reflected in stock prices. The recent rate cut is generally viewed as a preventive measure rather than a direct response to economic weakness, which could further enhance consumer confidence and spending.
Towards the end of September, RaeAnn Mitrione, Investment Management Partner at Callan Family Office, appeared in an interview and highlighted significant market developments following the Fed’s unexpectedly larger-than-anticipated rate cut. We covered this in detail in our article on the 7 Cheap Technology Stocks To Buy Right Now, here’s a short excerpt from it:
“…Mitrione emphasized that the market is reacting favorably to lower interest rates, particularly benefiting the tech sector… Pointing at a chart, Mitrione remarked that it is unusual to see rate cuts while markets are at record highs, raising questions about potential volatility ahead. Historically, even when rate cuts occur near market peaks, stocks often continue to rise. Much of this positive sentiment has been priced in due to prior indications of the rate cut. She explained that the economy remains strong, and the rate cut serves as a preventive measure rather than a reaction to economic weakness. This supportive environment could enhance consumer confidence and spending, further improving market performance.”
On September 28, DataTrek Research co-founder, Nick Colas, joined an interview on CNBC to discuss the trading day and highlight that the tech rally will have to wait until year-end. As September ended, the S&P 500 saw a remarkable increase of 20% year-to-date. In light of this performance, market participants began revisiting the post-Fed rate cut playbook following the initial easing. Nick Colas noted that one of the most encouraging aspects of September is that the market has not experienced a decline, which is typically expected during this month known for its volatility. Instead, the S&P had risen by 1.6% so far in September, demonstrating resilience despite some initial choppiness, which is particularly noteworthy given September’s historical reputation for turbulence.
As Colas noted, on the macroeconomic front, positive indicators are emerging. The Atlanta Fed’s GDPNow model has revised its Q3 growth estimate upward to 3.1%, signaling that the economy is performing well. Additionally, gasoline demand has increased by 6% year-over-year, reflecting strong consumer activity. Initial jobless claims reported recently also show a solid performance, falling below the three-year average. These data points support the mid-cycle playbook employed by DataTrek, suggesting that the economy is continuing to progress without any significant cracks or fissures in its foundation.
Despite these positive trends, questions remain about whether the market can sustain its momentum without new positive catalysts. Colas pointed out that historically, price-to-earnings multiples and stock prices tend to rise together as long as there are no major negative catalysts to disrupt the economic recovery. This correlation indicates that investor confidence remains intact and is likely to persist through the remainder of the year. Furthermore, as the market approaches traditionally strong months following elections, there are expectations for a potential old Santa Claus rally in December.
However, with the volatility index elevated at around 17 and geopolitical tensions looming, especially as elections approach, investors are likely to remain cautious. Over the past two years, the NASDAQ 100 has surged approximately 67%, marking a significant recovery since its lows in October two years ago. This performance is substantially above the historical average return of around 25%. Colas emphasized that while such returns are impressive, they do not yet indicate speculative excess; historically, a doubling of the NASDAQ over two years would signal potential trouble for investors.
Looking back further, Colas noted that since peaking before the bear market in November 2021, the NASDAQ 100 has only risen about 20% over three years. This suggests that there may still be room for growth compared to prior bubbles when returns were much more pronounced within shorter time frames.
The ongoing rotation away from technology stocks has been observed recently, with cyclical sectors and financials performing well. Colas believes this trend may continue for now, with a potential resurgence in tech stocks expected closer to November and December as year-end approaches. Investors appear to be favoring cyclical sectors at present, which offer more immediate upside opportunities.
While there are challenges ahead, the current economic indicators suggest a robust environment for continued growth in equities as long as investor confidence remains high and no major negative catalysts emerge to derail progress. Despite a recent rotation away from tech stocks, the market remains resilient, with the potential for a tech resurgence as we approach year-end, setting the stage for a bullish outlook for both tech and the NASDAQ in the coming months.
When optimism about economic conditions or technological advancements rises, tech stocks typically perform well, boosting the NASDAQ. With that understood, we’re here with a list of the 10 best-performing NASDAQ stocks in 2024.
Methodology
We used stock screeners to look for companies listed on NASDAQ that were trading over $10 billion. We then selected the top 10 NASDAQ stocks with the best year-to-date performance and that were also the most popular among elite hedge funds. The stocks are ranked in ascending order of their year-to-date performance.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Performing NASDAQ Stocks in 2024
10. Futu Holdings Ltd. (NASDAQ:FUTU)
Year-to-Date Performance as of October 2: 96.85%
Number of Hedge Fund Holders: 27
Futu Holdings Ltd. (NASDAQ:FUTU) is an international leading online brokerage firm that provides technology-driven wealth management services. It offers investment products, including stocks, bonds, funds, and derivatives, to retail investors primarily in China and Hong Kong. The innovative mobile app and online platform provide users with real-time market data, advanced trading tools, and personalized investment advice.
In the second quarter of 2024, the company added 155,000 new paying customers, which is a 168% increase year-over-year, making a total of 2 million paying customers, up 29%. Hong Kong and Singapore saw most of this growth, contributing significantly to the overall client base. Japan achieved double-digit growth through enhanced product offerings and marketing. Malaysia also performed well, leading all markets in new client acquisition.
Total revenue in Q2 was up 26% from a year-ago period. Brokerage commission and handling charge income was up 45% year-over-year and 27% quarter-over-quarter. The increase was driven by a 69% year-over-year and a 21% quarter-over-quarter growth in total trading volume.
The recent launch of cryptocurrency trading in Hong Kong and Singapore positions it further for growth in these markets. In Japan, management plans to launch NISA savings accounts, mutual funds, and US margin trading shortly. In Malaysia, the company recently introduced ringgit- and US dollar-denominated money market funds, with a Malaysian stock IPO subscription service. In Canada, it added a cash-plus product that allows clients to earn interest on their idle cash.
The company’s strong financial performance, driven by significant client growth and increased asset inflows, positions it for continued success in the market. The expansion of product offerings and geographic reach indicate a promising outlook for future growth.
9. Natera Inc. (NASDAQ:NTRA)
Year-to-Date Performance as of October 2: 103.05%
Number of Hedge Fund Holders: 60
Natera Inc. (NASDAQ:NTRA) is a clinical genetic testing company that specializes in non-invasive, cell-free DNA testing technology, with a focus on women’s health, cancer, and organ health. Its non-invasive prenatal testing (NIPT) is used to screen for chromosomal abnormalities in fetuses, including Down syndrome, Turner syndrome, and Edwards syndrome. It also offers genetic tests for various conditions related to cancer and hereditary diseases.
The company’s cancer screening is used by over 40% of American oncologists, and this adoption rate could increase if the screening is expanded to cover additional cancers. Natera Inc. (NASDAQ:NTRA) is currently conducting trials to evaluate the effectiveness of its screening for gastric and colorectal cancers.
Revenue in the second quarter of this year was $413.35 million, up 58.13% year-over-year. This was driven by record-high volumes and continued ASP growth. Volumes increased by over 23% year-over-year. Despite seasonal challenges, it saw sequential volume growth from Q1 to Q2.
The organ health and oncology segments also performed well. Signatera, its screening product, added 13,000 units sequentially in Q2, surpassing the baseline of 8,000 by 63%. Management anticipates that Signatera could add between 8,000 and 10,000 units going forward.
It enhanced its Prospera Heart Test to improve organ rejection detection and provide a more accurate risk assessment. Additionally, a recent court ruling upheld the company’s injunction against NeoGenomics’ RaDaR MRD assay.
The company’s unique position in the biotechnology market, providing essential blood tests for cancer treatment monitoring, has enabled it to rapidly gain market share and establish a strong competitive advantage. Hence, Natera Inc. (NASDAQ:NTRA) is poised to grow as an industry leader.
Parnassus Growth Equity Fund stated the following regarding Natera, Inc. (NASDAQ:NTRA) in its Q2 2024 investor letter:
“Natera, Inc. (NASDAQ:NTRA), an industry leader in genetic testing, reported favorable financial results for the first quarter of 2024. The company reached cash flow breakeven early and raised full-year guidance. We are optimistic that upcoming catalysts will continue to fuel growth in its women’s health and oncology businesses.”
8. Constellation Energy Corp. (NASDAQ:CEG)
Year-to-Date Performance as of October 2: 127.23%
Number of Hedge Fund Holders: 71
Constellation Energy Corp. (NASDAQ:CEG) is an energy company that provides electric power, natural gas, and energy management services to ~2 million customers across the continental US. It owns and operates a diverse portfolio of power plants, including nuclear, gas, solar, and wind facilities, and also provides energy efficiency solutions and renewable energy products to help customers reduce their carbon footprint and manage their energy costs effectively.
The company is investing $800 million to upgrade Illinois plants, increasing energy output by 158 MW, and repowering the Criterion wind project, boosting clean energy production by 79,000 MWh. It also issued a $900 million green bond for nuclear upgrades, clean hydrogen, and energy storage.
In the second quarter of 2024, the year-over-year revenue growth was only 0.53%, translating into a $5.48 billion revenue. However, the company anticipates an earnings growth of 45.84% by the end of 2024. It also repurchased $500 million of its shares during the quarter, bringing the total share buybacks for the year to $1 billion.
On September 23, Constellation Energy Corp. (NASDAQ:CEG) announced a $1.6 billion deal with Microsoft to restart the Three Mile Island Unit 1 nuclear plant by 2028. The company aims to extend the plant’s license to 2054.
This project underscores the increasing energy demands of AI data centers and reflects Microsoft’s ambitious AI initiatives. This partnership positions Constellation Energy Corp. (NASDAQ:CEG) as a key player in the growing AI ecosystem.
ClearBridge Global Infrastructure Value Strategy stated the following regarding Constellation Energy Corporation (NASDAQ:CEG) in its first quarter 2024 investor letter:
“On a regional basis, the U.S. and Canada was the top contributor for quarter, with U.S. electric utility Constellation Energy Corporation (NASDAQ:CEG) and U.S. rail operator CSX the lead performers. Constellation Energy is primarily a nuclear generation company and is the largest producer of carbon-free electricity in the U.S., serving states including New York, Illinois, Maryland, Pennsylvania and New Jersey. The company’s combined generation capacity is more than 32 GW and 90% of annual output is carbon free. Constellation has been a beneficiary of AI and subsequent power demand as its 24/7 base load nuclear generation can get premium contracts.”
7. Sprouts Farmers Market Inc. (NASDAQ:SFM)
Year-to-Date Performance as of October 2: 130.66%
Number of Hedge Fund Holders: 35
Sprouts Farmers Market Inc. (NASDAQ:SFM) is a supermarket chain, offering a wide selection of produce, bulk foods, meat, seafood, and prepared foods, with a focus on healthy and sustainable options. It also carries a selection of natural and organic products, including vitamins, supplements, and personal care items, with a commitment to quality, freshness, and affordability.
The company has expanded its reach through e-commerce partnerships with Uber Eats, DoorDash, and Instacart, driving a 30% surge in online sales. E-commerce now accounts for 14% of total sales. The company’s strategic focus on operational efficiency, including strategic store locations and a new store format, has contributed to its success.
Cymbiotika, a new supplement line introduced in the Innovation Center, successfully educated customers about its benefits. The private-label brand, Sprouts, also expanded with over 200 new products in the first half of the year, outperforming the company’s overall sales growth. Private-label brands accounted for 22% of sales during the quarter.
The company grew its sales by 11.89% in Q2 2024 as compared to the year-ago period, driven by a 6.7% increase in sales from existing stores and the opening of new locations. Management expects total revenue to grow by 9-10% at the year-end, with same-store sales increasing by 4-5%. The company plans to open approximately 35 new stores by Q4.
Sprouts Farmers Market Inc. (NASDAQ:SFM) also fully repaid a $125 million loan and used $104 million to repurchase 1.6 million shares of stock. It now has $15 million remaining under its $600 million stock buyback program. The company is well-positioned to capitalize on opportunities like the successful Cherry Festival in Q2, leveraging marketing and operations to drive industry growth. Such strides prepare it for long-term growth.
FPA Queens Road Small Cap Value Fund stated the following regarding Sprouts Farmers Market, Inc. (NASDAQ:SFM) in its Q2 2024 investor letter:
“Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a natural grocer with great merchandising and best-in-class gross margins.19 The company has attractive returns on capital, great new store economics, and they are accelerating their unit growth from 12 stores a year to 35 stores in 2024 on a base of roughly 400 stores. Over the past year, the stock has performed well after reporting strong operating results and from a low initial valuation. The stock price jumped when the company reported 2023Q4 results and gave strong 2024 guidance on February 22, 2024. We have maintained our position and allowed it to appreciate. Although SFM’s share price has increased faster than bottom line results, we believe SFM still trades in the “range of reasonableness” for a high-quality, non- cyclical franchise that can reinvest capital at attractive rates of return.”
6. Insmed Inc. (NASDAQ:INSM)
Year-to-Date Performance as of October 2: 135.17%
Number of Hedge Fund Holders: 74
Insmed Inc. (NASDAQ:INSM) is an international biopharmaceutical company that develops and commercializes therapies for patients with serious and rare diseases. With a focus on unmet medical needs and patient-centric innovation, it is committed to improving the lives of patients with these diseases.
Its lead product, ARIKAYCE (amikacin liposome inhalation suspension), is approved for the treatment of nontuberculous mycobacterial (NTM) lung disease, specifically for patients with refractory MAC lung disease. Insmed Inc. (NASDAQ:INSM) reported year-over-year revenue growth of 16.98% in Q2 2024, primarily driven by the sales of ARIKAYCE.
The company is currently conducting a Phase 2 study of TPIP in patients with pulmonary arterial hypertension (PAH), which is progressing well with over 75% of target enrollment completed, and topline results are expected in the second half of 2025.
In this study, 79.3% of patients reached the maximum dose of 640 µg by Week 5, revealing an unexpectedly positive and robust signal on the exploratory endpoint of clinical worsening. Encouraging blinded data from the first 40 patients demonstrated a combined mean pulmonary vascular resistance (PVR) reduction of 19.9% and a 6-minute walk distance improvement of 43 meters in both the active treatment and placebo arms.
Additionally, the company is advancing the development of brensocatib for bronchiectasis and other neutrophil-mediated diseases, with topline data from the Phase 3 ASPEN Trial expected to be available in the latter part of the second quarter of 2024.
The second quarter of 2024 was particularly significant for Insmed Inc. (NASDAQ:INSM), as management announced the company’s transition to a mid-cap biotechnology company in this period. This confidence in the company’s strategic direction and its ability to address unmet medical needs makes it a compelling investment opportunity in the biopharmaceutical sector.
Columbia Acorn Fund stated the following regarding Insmed Incorporated (NASDAQ:INSM) in its Q2 2024 investor letter:
“Insmed Incorporated (NASDAQ:INSM) is a commercial-stage biopharmaceutical company focused primarily on treatments for pulmonary disease. The stock meaningfully outperformed during the quarter following positive Phase III data for its Brensocatib (Brenso) drug in treating non -cystic fibrosis bronchiectasis (NCFB). While the stock has roughly doubled since the beginning of the year, we are maintaining the overweight position as Brenso could be a potential game changer for the company, given a multi-billion-dollar total addressable market and no other approved NCFB therapies on the market.”
5. NVIDIA Corp. (NASDAQ:NVDA)
Year-to-Date Performance as of October 2: 136.26%
Number of Hedge Fund Holders: 179
NVIDIA Corp. (NASDAQ:NVDA) is a leading player in the semiconductor industry that designs and manufactures GPUs for the gaming, data center, and professional visualization markets. Its GPUs are widely used for rendering graphics, accelerating AI applications, and powering HPC workloads. The company has also expanded into other areas, such as autonomous driving, robotics, and virtual reality.
The company holds ~80% of the global market share in GPU semiconductor chips. In the second fiscal quarter of 2025, the company achieved a remarkable 122.40% year-over-year revenue growth. Data center revenue surged 54% year-over-year, fueled by robust demand for NVIDIA Hopper, GPU computing, and networking platforms. Cloud service providers accounted for approximately 45% of data center revenue.
Collaborations with healthcare institutions and the growing demand for AI-driven diagnostic solutions have fueled this robust financial performance. In late August, management also approved a $50 billion share buyback program.
On September 25, NetApp introduced a new AI-powered data solution utilizing NVIDIA technology, enhancing its unified storage operating system and benefiting thousands of enterprises. Elon Musk’s xAI launched Colossal is powered by 100,000 NVIDIA H100 GPUs. Colossal is expected to expand with H200 GPUs and potentially Blackwell chips. Despite challenges in product launches and GPU pricing, NVIDIA’s focus on AI monetization and sustainability positions it for long-term growth.
Although CUDA software provides a competitive edge, the company’s future relies on continued innovation and effective AI monetization. CUDA (Compute Unified Device Architecture) is a parallel computing platform and API that allows developers to utilize the power of GPUs for general-purpose processing. Market analysts anticipate a shift toward robotics for the company’s growth. Management forecasts low-double-digit billion AI revenue this year.
Columbia Contrarian Core Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) – Following the release of first-quarter earnings in May featuring record revenue growth of 262% year over year, NVIDIA continued its upward march. On June 10, shares of the company began trading on a split-adjusted basis following a 10-for-1 forward stock split, making stock ownership more accessible to employees and investors alike. Just one week later, the company officially surpassed Microsoft in market cap to become the most valuable publicly traded company (although it would relinquish the title not long after). While other companies have also stood to benefit from the artificial intelligence (AI) trend this year, NVIDIA stands out as the unquestionable leader in the space and that is unlikely to be challenged for many years ahead. NVIDIA continues to see extremely strong levels of demand and the recent introduction of the Blackwell system looks to be an exciting next phase of growth for the stock.”
4. MicroStrategy Inc. (NASDAQ:MSTR)
Year-to-Date Performance as of October 2: 157.58%
Number of Hedge Fund Holders: 26
MicroStrategy Inc. (NASDAQ:MSTR) is a software company that specializes in enterprise analytics and business intelligence solutions. MicroStrategy ONE, its flagship product, empowers non-technical users to easily access valuable insights for informed decision-making. MicroStrategy Cloud for Government provides essential threat-monitoring services tailored to meet the complex technical and regulatory needs of government agencies and financial institutions.
As of August this year, this company remains the world’s largest corporate holder of Bitcoin, owning 226,500 bitcoins with a total market value of $15 billion. Bitcoin holdings increased by 13.3% and 5.6% in the first and second quarters of 2024, respectively. While Bitcoin acquisitions have generated substantial returns, they have also contributed to a significant increase in net debt, rising from $531 million to $3.8 billion. Year-to-date, the price of Bitcoin has risen significantly, driven by the approval of Spot Bitcoin Exchange Traded Products (ETPs), attracting substantial institutional interest.
The company underperformed market expectations in Q2 2024, with a 7.44% year-over-year decline in revenue and a loss per share of $0.57. During this quarter, the company continued its transition to cloud offerings, resulting in subscription services revenue of $24 million, a 21% year-over-year increase driven by cloud migrations and new customers.
Its strategic moves, including the launch of Auto Express, the availability of MicroStrategy ONE on Google Cloud Marketplace, and partnerships with Azure and AWS, demonstrate its commitment to leveraging AI for growth. These initiatives solidify the company’s position as a leader in the AI industry.
Artisan Small Cap Fund stated the following regarding MicroStrategy Incorporated (NASDAQ:MSTR) in its Q2 2024 investor letter:
“Regarding MicroStrategy Incorporated (NASDAQ:MSTR), our decision to avoid this company comes down to a lack of conviction in its franchise characteristics. The stock has worked this year due to a rebound in the price of bitcoin. Since 2020, MicroStrategy has been focused on converting its cash and cash equivalent holdings, as well as issuing debt, to fund the purchase of bitcoin, which now makes up most of the company’s value.”
3. FTAI Aviation Ltd. (NASDAQ:FTAI)
Year-to-Date Performance as of October 2: 183.73%
Number of Hedge Fund Holders: 33
FTAI Aviation Ltd. (NASDAQ:FTAI) owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide, operating through two main segments, Aviation Leasing and Aerospace Products. It has a fleet of commercial aircraft, which it leases to airlines around the world, and also provides aircraft maintenance and management services, including technical support, crew training, and regulatory compliance.
Revenue was up 61.69% year-over-year in the second quarter of 2024, despite a loss per share of $2.26. EBITDA reached $213.9 million, with $125 million from Leasing, $91.2 million from Aerospace Products, and a negative $2.3 million from Corporate and Other.
The company just announced that it’s going to buy back all of its Series A Preferred Shares. This means that investors who own these shares will receive $25.00 per share, plus any dividends they’ve earned up until the redemption date of October 30 this year.
FTAI Aviation Ltd.’s (NASDAQ:FTAI) Module Factory is a key competitive advantage that positions the company for future success. As Boeing’s production challenges limit the global supply of commercial jets, FTAI can benefit from airlines extending the life of their existing fleets. By expanding its engine support and partnering with more engine manufacturers, the company can further strengthen its market position.
Its exposure to the growing commercial travel industry, coupled with its unique Module Factory, offering a competitive advantage in the face of global supply chain challenges, positions it well to benefit from increased demand and limited supply. The company’s ability to expand its engine support and develop strong industrial relationships will be crucial for maintaining its market position. Given these factors, FTAI Aviation Ltd. (NASDAQ:FTAI) is poised for success.
Columbia Acorn Fund stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q2 2024 investor letter:
“FTAI Aviation Ltd. (NASDAQ:FTAI) is an aviation leasing, maintenance and repair company that has built a unique business model, with exposure to the most attractive part of the aerospace aftermarket today — the CFM56 jet engine (sole-sourced engine for the Boeing 737 family and one of the two engine options for the Airbus A320 family). CFM56 engines are the largest engine market, with more than 22,000 engines manufactured and more than 21,000 in service today. FTAI’s strategic partnerships with Lockheed Martin and other engine manufacturers provide a significant moat. The company is well positioned to take advantage of the utilization of engine leasing assets due to strong demand, as airline traffic continues to pick up amid asset scarcity.”
2. Applovin Corp. (NASDAQ:APP)
Year-to-Date Performance as of October 2: 227.85%
Number of Hedge Fund Holders: 54
Applovin Corp. (NASDAQ:APP) is a mobile technology company that operated in stealth mode until 2014. Its platform connects app developers with advertisers, offering a suite of tools and services to help app developers monetize their apps through advertising, while also providing advertisers with effective ways to reach their target audience. Its technology leverages machine learning and data analytics to optimize ad placements and deliver high-quality traffic to advertisers.
The platform is attracting more advertisers and generating higher spending. However, the company is still working to find users who meet advertisers’ revenue goals. As the technology improves, Applovin Corp. (NASDAQ:APP) expects to attract more users, leading to increased ad spending and growth. Management aims to grow the software business by 20-30% in the long term.
In-app advertising offers significant growth potential. Management highlighted the MAX platform’s role in driving this growth by transitioning from inefficient waterfall methods to programmatic bidding, expressing confidence in maintaining consistent sequential growth rates of 5-7% in the software business.
In Q2, the company’s software platform generated $711 million in revenue, and app revenue reached $369 million. Overall revenue for Q2 2024 totaled $1.08 billion, representing a 43.98% improvement from the year-ago period. It piloted a program that allows e-commerce websites to purchase in-app mobile game video ad inventory in the second quarter of 2024. This initiative directs game users to the e-commerce sites and is part of AppLovin’s strategy to attract more advertisers by leveraging its extensive user base.
AppLovin Corp.’s (NASDAQ:APP) AI-powered platform and strategic partnerships position it well for growth in the mobile advertising market. Management plans to invest in organic growth, focusing on engineering and business development to support AXON technology and e-commerce expansion.
Carillon Scout Mid Cap Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q2 2024 investor letter:
“AppLovin Corporation (NASDAQ:APP) was another top contributor. The advertising technology platform, focused on mobile applications, reported strong earnings results in early May. Its AI-driven Axon 2.0 mobile advertising platform continues to produce strong returns for customers, which is leading to more than expected spending on the platform. Although the one-year anniversary of Axon 2.0’s release occurs this year, the company is already working to expand beyond mobile applications with opportunities in e-commerce and connected television. We believe AppLovin’s valuation, free cash flow, and leading market share remain attractive.”
1. Summit Therapeutics Inc. (NASDAQ:SMMT)
Year-to-Date Performance as of October 2: 670.11%
Number of Hedge Fund Holders: 17
Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical company that focuses on the discovery, development, and commercialization of patient, physician, caregiver, and societal-friendly medicinal therapies in the US, and the UK.
Over the past few months, the company has made significant progress in raising awareness of ivonescimab and its mission to develop innovative treatments for serious oncology needs. Its partnership with Akeso, a well-established Chinese biotech, has been instrumental in advancing ivonescimab’s development and significantly reducing development risks. Together, they conducted two successful Phase 3 clinical trials, HARMONi-A and HARMONi-2, for ivonescimab in non-small cell lung cancer (NSCLC), yielding positive data that provide strong evidence for the drug’s potential.
It also announced a 5-year strategic collaboration with MD Anderson to accelerate ivonescimab’s development, complementing its ongoing collaboration with Akeso. Currently, there are 20 ongoing clinical trials evaluating ivonescimab for various cancer types. While the current Phase 3 programs focus on NSCLC, seven trials are exploring its potential in other solid tumors. Early-stage clinical trials have demonstrated the efficacy of ivonescimab in treating NSCLC.
Its strong financial position allows it to allocate resources for ongoing development efforts, supported by a solid cash balance. In Q2 2024, R&D expenses remained stable, although acquired IP R&D expenses increased due to a licensing agreement amendment. Overall operating expenses remained consistent.
Summit Therapeutics Inc. (NASDAQ:SMMT) appears to be a promising investment opportunity. The company’s strong pipeline, strategic partnerships, and positive clinical data position it for potential future growth.
While we acknowledge the growth potential of Summit Therapeutics Inc. (NASDAQ:SMMT), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SMMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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