The financial landscape witnessed an extraordinary revival in 2023, marking a period of robust growth across the board. The resurgence was particularly pronounced in the S&P 500, which saw a commendable increase of 24.2%, and the Nasdaq Composite, which surged by an impressive 43.4%.
This upturn came on the heels of concerted efforts by the Federal Reserve to counteract inflation, resulting in a significant moderation of price hikes. The technology sector, in particular, reveled in the advent of groundbreaking artificial intelligence (AI) technologies, such as the widely acclaimed ChatGPT by OpenAI.
Despite the overall bullish sentiment, certain stellar entities didn’t quite make it to the limelight during the festivities on Wall Street. As we step into February 2024, astute investors have the opportunity to discover these treasures, still undervalued and ripe for the picking, in anticipation of the burgeoning bull market.
SoundHound AI (SOUN): The Underdog with a Roar
Among the noteworthy mentions is SoundHound AI, a pioneer in voice recognition and natural language processing technologies. While its core product began as a revolutionary app for identifying music, it has since expanded into a versatile voice control ecosystem for various applications, from automotive to restaurant services.
Despite its significant advancements and doubling of revenue over five quarters, SoundHound AI’s performance in the stock market was modest, with a 19.8% gain, falling short of the broader market’s achievements.
However, its burgeoning client list, featuring names like Block and Toast, coupled with its recent acquisition of SYNQ3 Restaurant Solutions, positions it for potential exponential growth. With its sights set on growing its restaurant service platform, this inexpensive AI stock is well-positioned for an big upward trajectory in the upcoming bull market.
The Trade Desk (TTD): Revolutionizing Digital Advertising
Another entity setting the stage for transformative growth is The Trade Desk. With a 15-year track record, this digital advertising powerhouse boasts unmatched expertise in automated ad-buying solutions. Its proprietary Unified ID 2.0 technology is a testament to its commitment to privacy and efficiency in ad tracking.
The shift from traditional advertising to more targeted digital strategies has made The Trade Desk’s offerings indispensable. Despite the challenges posed by high inflation and interest rates, the company has consistently outperformed the market, capturing a significant share from conventional and digital competitors.
CEO Jeff Green’s remarks underscore the company’s robust growth and market share gains, making it an attractive investment as the digital ad market rebounds.
“Magna Global estimates that the overall U.S. advertising industry is growing at 5% this year, and digital spend or the digital ad market pie is expected to grow by 10%,” Green said on November’s third-quarter earnings call. “Clearly, we are significantly outperforming the rest of the advertising market. This builds on our market share gains from last year when we grew 20%-plus each quarter and our competitors were posting negative to low single-digit growth.”
Investment Considerations and Future Outlook
While the immediate allure of these stocks is undeniable, savvy investors should approach each investment with a strategic mindset. In particular, The Trade Desk finds itself in a uniquely pivotal position, and astute investors should carefully evaluate the upcoming earnings report as it has the potential to ignite the value of its stock.
The rapidly changing digital advertising landscape, driven by innovations such as UID2, highlights the company’s exceptional potential.
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I’m Jackson Hartwell, a writer who specializes in dissecting political events. I’m dedicated to providing you with clear and concise insights into the world of politics, making it easier to understand the latest news and developments.