2024 was an extraordinary year for the share markets, with the technological sector that assumed the role of absolute protagonist thanks to exceptional performance of some key companies.
In this context, we decided to focus on three companies that have distinguished themselves for their ability to innovate and for the results obtained during the year: applied corporation, microstrategy incorporated and Palantir Technologies. These companies represent examples of how technological innovation can create extraordinary opportunities for investors. By analyzing the factors that have contributed to their success, we can acquire a clearer vision of current dynamics and future opportunities in the financial markets.
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Inflation in decline and cutting of interest rates: effects on the stock market
2024 was a year marked by favorable economic conditions that provided fertile ground for the growth of equity markets, with Nasdaq who recorded an extraordinary performance of 25.88%. This result highlighted the centrality of the technological sector, driven by a combination of macroeconomic factors and innovative progress.
One of the key elements was the decrease in inflation, as shown in Figure 1, which has returned confidence to investors and allowed central banks, such as the Federal Reserve, to adopt a more accommodating monetary policy. In particular, interest rates cuts have facilitated access to capital, encouraging investments in high growth sectors and supporting the development of advanced technologies.
At the same time, progress in the field of artificial intelligence and big data played a fundamental role. Many Nasdaq companies have been able to exploit this evolution, contributing to the overall result of the index.
On the geopolitical front, relative stability has contributed to maintaining a climate of trust in global markets. Although some uncertainties have remained, such as commercial tensions between the United States and China.
These factors created the ideal conditions for the strong result obtained by Nasdaq and the technological sector in general.
Figure 1. Fall of inflation, after the peak reached in 2022.
Palantir: entry into the’s & p 500 and performance beyond expectations
Founded in 2003, Palantir Technologies (PLTR) has established itself as one of the leading companies in the advanced data analysis sector. The company develops software solutions that allow governments, organizations and companies to collect, analyze and interpret large volumes of complex data. His tools find application in key sectors such as defense, health, finance and supply chain, and Palantir boasts close collaboration with governments and multinationals.
Despite its high technological potential, Palantir’s path on the stock exchange, which began with the price in 2020, was far from linear. After a promising debut, the actions have gone through periods of strong volatility, in part due to the difficulties of society in demonstrating a constant growth of revenues and to convince the sustainability market of its business model. The criticisms have often focused on the significant dependence on government contracts, considered by some analysts an obstacle to the diversification of the customer portfolio. As shown in Figure 2, this instability has penalized the title compared to other technological companies.
Figure 2
2024, however, marked a turning point for Palantir, thanks to a series of key events that relaunched the trust of investors and the performance of the title. One of the most important events was the inclusion of the company in the S&P 500 index in September. This move has not only increased the visibility of the company, but has also attracted a greater number of institutional investors, strengthening the credibility of the company on the market.
In parallel, Palantir has made important steps forward in the field of generative artificial intelligence, implementing new features in its products. These innovations have made the company’s solutions even more versatile and attractive for a wider clientele, promoting significant growth in revenues. The quarterly results of 2024 have in fact exceeded the expectations of analysts for three consecutive quarters, consolidating the resumption of the title.
As highlighted in Figure 3, Palantir closed the year with an impressive growth of 340%, positioning themselves among the best performers. This result underlines not only the renewed market interest in the company, but also the ability to evolve and innovate to respond to the needs of a market in continuous transformation.
Figure 3. Palatir (Pltr) performance in 2024.
Microstrattegy: +359% in 2024, also thanks to the lever effect linked to Bitcoin
Founded in 1989, Microstrategy (Mstr) is one of the global leading companies in the business intelligence and data analysis sector. The company develops software solutions that help companies collect, analyze and transform large quantities of data into strategic information, improving decision -making processes and optimizing business operations. Microstrategy products are applied in numerous sectors, including finance and technology, supporting targeted and efficient growth strategies.
In recent years, however, Microstrattegy has attracted attention not only for its technologies, but also for its bold strategy linked to cryptocurrencies. The company has in fact distinguished itself for its massive investments in Bitcoin, becoming in fact a sort of “proxy” (representative) of the cryptocurrency market, a move that redefined the perception of society in the eyes of investors.
As highlighted in Figure 4, the price of microstrattegy actions is strongly correlated to the Bitcoin trend. This connection derives from the strategic decision of the CEO Michael Saylor to accumulate Bitcoin as a company value reserve. In 2024, Bitcoin lived an exceptional year, exceeding the symbolic threshold of 100,000 dollars, thanks to April Halving and the renewed interest of investors. Even the favorable economic policies of the Trump administration, which promoted the adoption of alternative value reserves, contributed to this rally.
Bitcoin’s ascent had a direct impact on the microstrategy budget, whose digital asset portfolio saw a significant increase. Consequently, the company’s price has reached new maximums, attracting both institutional and retail investors.
Although Bitcoin recorded a considerable increase of 121% in 2024, Microstrategy’s shares obtained even more extraordinary performance, closing the year with a growth of 359%. This superaperformance is attributable to a unique dynamic linked to the lever effect generated by the corporate strategy of CEO Michael Saylor.
In practice, when the price of Bitcoin rises, the value of microstrategy actions also increases, given the strong correlation between the two assets. Taking advantage of this rise, Saylor periodically sells part of the microstrategy actions (Mstr) to generate liquidity, then using it to buy further bitcoins. This mechanism creates a natural lever effect: each increase in the Bitcoin value is reflected in an amplified expansion of the company’s cryptocurrency portfolio, which, in turn, feeds the enthusiasm of the investors and further pushes the price of the actions Mest.
In addition, the microstrategy strategy has acquired more and more credibility in the eyes of investors, thanks to the solid financial results and the long -term vision of the company.
Figure 4
Apply: Mobile marketing in first place in the Nasdaq basket for performance
Listed on the stock exchange in 2021, Applied Corporation (App) quickly established itself as one of the most innovative companies in the sector of mobile marketing and advertising technologies. Its technological platform uses artificial intelligence to help developers mobile applications to monetize their products through highly targeted and optimized advertising campaigns. Thanks to the efficiency and scalability of its tools, Apply has managed to attract a wide range of customers, from small independent developers to large multinationals, positioning itself as the leader of the sector.
2024 was an exceptional year to apply, with an impressive growth of 713%, which made it the best performer of the Nasdaq. This extraordinary result was the result of a combination of technological innovation, targeted company strategy and fundamental solids.
One of the main engines of this growth was the continuous development of the owner technology Axon, a platform based on artificial intelligence that has revolutionized the way in which advertising campaigns are optimized. Axon has increased the effectiveness of advertising campaigns, improving Roi for customers and strengthening the competitive position of AppPovin on the market.
The most significant moment of the year was the announcement of the financial results of the third quarter, which represented a turning point for the title. On November 7, the shares of the company rose by 46% in a single day, as shown in Figure 5, thanks to results that have widely exceeded the expectations of analysts. The profit per share reached $ 1.25, exceeding $ 0.92 estimates, while quarterly revenues have touched $ 1.2 billion, marking a growth of 39% compared to the previous year. This result has not only strengthened the trust of investors, but has also consolidated the image of applied as a company capable of generating profitable and sustainable growth.
Figure 5
Considerations and perspectives based on the performance of the best innovative companies of 2024
In conclusion, 2024 has shown that innovative sectors such as mobile marketing, artificial intelligence and cryptocurrencies continue to gain more and more relevance in financial markets.
However, it is important to remember that these companies, while offering exceptional growth opportunities, operate in sectors characterized by high volatility. Unlike traditional Stocks, which tend to offer greater stability, these actions can undergo strong oscillations based on market conditions and technological developments. For investors, therefore, it is essential to approach these securities with awareness and careful management of the risk.
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Until next time,
Andrea Unger