3 growth stocks that could make you richer in 2024 and beyond

2022 has been a bleak year for some investors. Several growth stocks took a hit left, right, and center. But things seem to be getting better as we approach the end of 2023. Many growth stocks are on the rise thanks to better-than-expected real gross domestic product (GDP) growth in the third quarter and slowing inflation. Strong recovery in stock prices.

In this environment, it makes sense for investors to consider picking growth stocks that are riding solid secular trends, such as streaming, robotics, and artificial intelligence (AI). Here’s why these three stocks are a good fit and could help you create wealth in 2024 and beyond.

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A global leader in the smart TV operating system market, year (year -0.63%) They are a major beneficiary of the accelerated pace of cord cutting. According to a Kagan US Consumer Insights survey, 35% of U.S. households have discontinued their pay TV subscription, up 8 percentage points over the past year. These viewers are switching to more affordable streaming services, which is driving increased demand for Roku’s streaming hardware devices and connected TV (CTV) operating system, which are licensed to TV manufacturers. Not surprisingly, Roku reported that active accounts reached 75.8 million in the third quarter, up 16% year-over-year.

Although Roku is better known for its streaming hardware devices, the majority of its revenue (more than 86% in the third quarter) comes from its platform segment, which is primarily generated through advertising and content distribution for streaming partners. Various content partnerships and the right mix of original and licensed content on the free, ad-supported Roku Channel have helped the company improve user engagement on the platform and attract new viewers. This in turn attracts more advertiser attention and gives us more leverage with new streaming partners. This flywheel effect makes this company a solid choice for long-term retail investors.

Ui Pass

A pioneer in robotic process automation (RPA), Ui Pass (road 26.72%) It might not be your favorite AI stock right now. But for years, companies have been leveraging AI and machine learning algorithms to help organizations automate, scale, and simplify a variety of repetitive, low-skill activities using low-code and no-code interfaces. In June 2023, the company introduced new generative AI and expert AI capabilities to its business automation platform, giving customers access to multiple third-party large-scale language models as well as enhanced document understanding and communication mining solutions.

Thanks to the power and ease of use of the UiPath platform, UiPath closed the second quarter of fiscal 2024 with a 10,890-strong customer base in July. The company’s strategy to attract customers with a high propensity to spend is also bearing fruit. The number of customers contributing more than $1 million in annual recurring revenue in the second quarter was 254, a 30% increase year over year. UiPath has also seen significant success with its land and expansion strategy, including acquiring and expanding new clients. They then cross-sell or up-sell their products and services), as evidenced by their 121% dollar-based net retention rate.

The global RPA market is expected to grow from $3 billion in 2023 to $31 billion in 2030, at a robust CAGR of 40%. With its market-leading position, UiPath appears well-positioned to capitalize on this opportunity.

Roblox

Video game companies that have fallen out of favor on Wall Street over the past few months Roblox (RBLX 2.90%) It seems like it’s making a comeback. Known for helping gamers create and host games in virtual worlds, the company is well-positioned to target the rapidly expanding Metaverse market opportunity. It is expected to surge from $82 billion in 2023 to over $936 billion in 2030.

Even if the metaverse opportunity does not lead to profits in the short term, Roblox’s core business is solid. The company is seeing solid improvements in user engagement, with daily active users reaching 70 million, up 20% year-over-year, and total hours engaged reaching 16 billion, up 20% year-over-year. In the third quarter. Since only about 20% of the company’s user base are paying subscribers, the company’s revenue-generating potential is enormous. Given its large and highly engaged customer base, there is also significant room for the company to increase its advertising revenue.

Roblox also recorded an impressive positive free cash flow of $59.5 million in the third quarter, a dramatic improvement over the $67.7 million outflow in the same quarter last year.

Roblox has been leveraging AI technology to effectively monitor play on its platform to help increase safety and improve user experience while controlling costs. As the gaming industry continues to embrace AI, game publishers will be able to release more creative, realistic, and engaging games at lower costs. All of these improvements will benefit Roblox and its ability to monetize its users. Given the enormous growth potential of this market, now might be a good time to consider buying stock in Roblox.