The Nasdaq-100’s ($IUXX) remarkable 27% gain in 2024 clearly demonstrates the powerful impact of innovation and economic shifts on the market this year. These factors have driven exceptional stock performances as we approach the year's end.
Among the top performers, AppLovin (APP), MicroStrategy (MSTR), and Palantir Technologies (PLTR), soared by 765.29%, 426.01%, and 369.95%, respectively, highlighting the big trends that defined tech in 2024.
One of the biggest drivers was generative AI, with 72% of organizations worldwide using AI in at least one part of their business, up from 55% in 2023. This has helped companies like AppLovin and Palantir turn a solid profit.
At the same time, cryptocurrency made a big comeback, with Bitcoin (BTCUSD) recently reaching an all-time high above $108,000, helping drive MicroStrategy’s massive rise. This BTC surge was fueled by the approval of spot Bitcoin exchange-traded funds and April’s halving event. Adding to the excitement, Donald Trump is returning to the White House, boosting hopes for crypto-friendly policies and deregulation, which gave digital assets another push.
These favorable environments set the stage for the remarkable performance of AppLovin, MicroStrategy, and Palantir, so let’s dive into how these three stocks dominated the Nasdaq-100 this year.
AppLovin (APP)
AppLovin (APP) is a major player in mobile technology, helping app developers promote, make money from, and analyze their apps with its software tools. The company focuses on two main areas: its Software Platform, which includes tools like AppDiscovery and MAX for advertising, and its Apps segment, which features a collection of mobile games.
In 2024, AppLovin became the top-performing stock in the Nasdaq-100, skyrocketing 770.09% year-to-date.
With a market value of $114.72 billion and a forward price-to-earnings ratio of 84.36x, investors clearly see big growth potential in the company.
The company’s third-quarter 2024 results were impressive, with revenue climbing 39% year-over-year to $1.2 billion and adjusted EBITDA jumping 72% to $722 million. Free cash flow also surged by 182% to $545 million.
In Q4, AppLovin bolstered its financial position by completing a $3.55 billion senior notes offering, providing ample liquidity for future expansion. For Q4, AppLovin expects revenue between $1.24 billion and $1.26 billion.
At the core of AppLovin’s success is AXON, its AI-powered advertising engine that has changed how businesses make money from mobile games and apps. The updated AXON 2.0 has been especially impactful, delivering more precise ad targeting and higher returns for advertisers.
The company’s push into e-commerce has also opened up new opportunities. Early results are promising, with some advertisers seeing better returns compared to Meta and Google AdWords.
Analysts are optimistic about AppLovin’s future, with 25 analysts giving it a "Moderate Buy" rating. The average price target is $315.82, below its current trading price.
MicroStrategy Inc (MSTR)
MicroStrategy (MSTR), originally a business intelligence software company, has completely reinvented itself as the largest corporate holder of Bitcoin. This bold shift, driven by Executive Chairman Michael Saylor, has turned the company into a Bitcoin-focused investment vehicle, though it still operates its software division on the side.
MicroStrategy became one of the top-performing stocks in the Nasdaq-100 for 2024, with its value skyrocketing over 439.96% year-to-date. The stock hit a record high of $543 in November but has since seen some ups and downs, closing at $341.05 on Dec. 26. This represents a significant rebound from its 52-week low of $43.89 in January.
The company’s market cap is now $77.45 billion, with an enterprise value of $81.68 billion. This performance is closely tied to Bitcoin’s price surge.
Q3 2024 earnings were mixed. Revenue fell 10.3% year-over-year to $116.1 million due to weaker product licenses and support services, but subscription services revenue grew 32.5% to $27.8 million, showing strength in that area. Analysts expect Q4 revenue to hit $123.52 million, with earnings per share projected at -$0.13.
MicroStrategy’s success this year has been fueled by its aggressive Bitcoin buying spree. The company’s "BTC Yield" - a key performance indicator - reached an impressive 17.8% year-to-date, demonstrating the effectiveness of its Bitcoin strategy. MSTR now holds 444,262 BTC worth about $42 billion, purchased at an average price of $62,257 per coin. In December alone, it added 5,262 BTC for $561 million, funded through equity offerings and convertible debt as part of its ambitious “21/21 Plan.”
Not everyone is convinced by this strategy — some investors worry about the risks of relying on debt and equity to buy Bitcoin. Still, Michael Saylor remains confident, comparing Bitcoin to “cyber-Manhattan” and predicting massive long-term gains.
Analysts are overwhelmingly optimistic about MicroStrategy’s future. All eight analysts covering the stock rate it as a “Strong Buy.” The mean price target is $530.75, implying 54% upside from current levels.
Palantir Technologies (PLTR)
Palantir Technologies (PLTR) has made a name for itself in data analytics and artificial intelligence, offering software platforms that help organizations make sense of large amounts of data. Its two main products, Foundry for commercial clients and Gotham for government agencies, have made it a key player in the AI space.
As the third-best performer in the Nasdaq-100 for 2024, Palantir’s stock has soared by 378.39%, climbing from $15.66 to $82.14.
This massive jump has pushed its market value to $187.66 billion. However, its high valuation, with a forward P/E of 217.14x, reflects big expectations for future growth.
In Q3 2024, Palantir exceeded expectations with revenue rising 30% year-over-year to $726 million and net income doubling to $143.5 million. CEO Alex Karp's colorful declaration that they "absolutely eviscerated this quarter" reflects the company's confidence in its AI-driven strategy.
The company raised its full-year revenue forecast to between $2.805 and $2.809 billion, with Q4 projections between $767 million and $771 million, well above analyst estimates.
Palantir’s success this year has been fueled by strong demand for its AI tools, especially in government contracts where U.S. revenue grew 44% to $499 million. The company’s FedRAMP High Authorization has opened doors for more sensitive government projects, while a $618.9 million U.S. Army contract extension solidifies its leadership in the sector. Partnerships like integrating drone navigation with Red Cat Holdings (RCAT) and working with Pray.com show how Palantir is expanding its AI applications across industries.
Despite its premium valuation, analysts remain cautious with a “Hold” consensus and a mean price target of $42.80, implying a downside of -47%. However, with Palantir's continued innovation in AI and expanding market presence, it remains a key player in the ongoing tech revolution.
Conclusion
As 2024 comes to a close, the Nasdaq-100 has proven to be a breeding ground for innovation and exceptional growth. AppLovin, MicroStrategy, and Palantir have stood out as the year’s top performers, each capitalizing on transformative trends like AI and cryptocurrency. These companies not only delivered outstanding returns but also set the stage for what’s next in tech. The question now is: Who will lead the charge in 2025?
