One of the best ways to build lasting wealth in the stock market is to buy shares of solid companies with exceptional growth prospects. To help position you for a lucrative 2024, here are two top-quality companies that are generating excellent returns for their investors.
1.Alphabet
The digital advertising market will reach $870 billion by 2027, up from around $600 billion in 2023, according to Statista. Google’s dominance of the Internet search industry Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) in a strong position to take advantage of rising online advertising spending in the years to come.
YouTube offers Alphabet shareholders another great way to profit from the growth of digital ads. With a staggering 2.7 billion users collectively consuming 1 billion hours of content on its platform every day, according to DemandSage, the hugely popular video sharing platform is a must-have platform for digital marketers.
Additionally, YouTube is a powerful growth engine. Its sales increased more than 20% year-over-year to reach $8 billion in the first quarter. Investors can expect this figure to increase steadily in the coming years. Demand Sage predicts that YouTube’s user base will reach 2.85 billion by 2025. Additionally, YouTube’s ad sales could get a boost if its rival TikTok is banned to operate in the United States
Alphabet shareholders also stand to benefit from the rapid adoption of artificial intelligence (AI). Growing demand for AI model training services and other machine learning workloads is fueling the growth of Google Cloud, the company’s IT infrastructure division. Google Cloud revenue jumped 28% year over year to $9.6 billion in the first quarter. Its operating profits, in turn, increased fivefold to $900 million.
Here too, Alphabet has a tremendous opportunity for long-term expansion. The global cloud computing market will reach a staggering $2.5 trillion by 2032, up from $495 billion in 2022, according to Acumen Research and Consulting.
With so much room for profitable growth still to come, Alphabet stock is a solid buy today. Management seems to agree. On April 25, the company increased its share repurchase program by a whopping $70 billion. Alphabet also announced that it would begin paying a dividend, which should put its stock on the radar of more income-focused investors.
2. Eli Lilly
The U.S. Food and Drug Administration (FDA) warns that obesity can lead to dangerous diseases like diabetes and heart disease. Elie Lilly (NYSE:LLY) wants to combat these worrying health trends by helping people lose excess body fat. In turn, its revolutionary weight loss treatment, Zepbound, may become the best-selling drug of all time.
Zepbound is an incretin therapy that works by stimulating hormones that can decrease a person’s appetite and, by extension, the amount of food they eat. A 72-week clinical study showed that people who received the highest dose of the weekly injection lost an average of 48…
