Two Potential Shares That Might Increase Your Wealth by 2024
One of the best strategies for generating sustained wealth in the stock market is investing in robust companies with remarkable growth potential. To help you set yourself up for a prosperous 2024, I've got two top-notch enterprises generating substantial returns for their shareholders.
1. Google's Parent Company (Alphabet)
The digital advertising sector is projected to surge to an astonishing $870 billion by 2027, up from around $600 billion in 2023, according to Statista. Google's commanding hold over the internet search market positions Alphabet (GOOGL -0.07%) (GOOG -0.06%) for lucrative profits as more marketing funds move online in the coming years.
YouTube, Alphabet's shareholders' additional income river, provides another means to bank on digital ad growth. With 2.7 billion users watching a collective 1 billion hours of content daily on the platform, according to DemandSage, YouTube is an unavoidable tool for marketers.
Moreover, YouTube fuels growth with its sales soaring over 20% year over year to $8 billion in the first quarter. Demand Sage projects this return to swell consistently over the years. Furthermore, YouTube's user base should expand to 2.85 billion by 2025. And if rival TikTok is banned from U.S. operation, YouTube's ad sales could receive a significant boost.
Artificial Intelligence (AI) also advances Alphabet's cause. Soaring interest in AI model training services and other machine learning tasks propels Google Cloud, Alphabet's computing infrastructure division. Google Cloud's revenue jumped 28% year over year to $9.6 billion in the first quarter, accompanied by a near-fivefold increase in operating profits to $900 million.
As the global cloud computing market balloons to a breathtaking $2.5 trillion by 2032, according to Acumen Research and Consulting, Alphabet's growth potential remains robust. The company recently enlarged its share repurchase program by an impressive $70 billion and plans to begin paying a dividend, attracting income investors.
2. Eli Lilly
The U.S. Food and Drug Administration warns of severe health risks related to obesity, such as diabetes and heart disease. Eli Lilly (LLY 0.57%) aims to combat these health concerns by promoting weight loss with its innovative therapy, Zepbound. This groundbreaking weight-loss treatment may emerge as the most popular drug ever.
Zepbound relies on incretin-based technology to stimulate hormones that suppress appetite, consequently reducing food consumption. A 72-week research trial showed that individuals who received the highest dose of the once-weekly injection averaged a 48-pound weight loss.
Furthermore, trial participants who received Zepbound and followed diet and exercise routines saw improvements in their cholesterol and blood pressure. This treatment also reduced blood sugar levels in individuals with type 2 diabetes, according to other trials.
Eli Lilly's sales and profits surged by 26% and 67%, respectively, to $8.8 billion and $2.2 billion in the first quarter. Predicted earnings per share growth of more than 50% annually over the next five years makes Eli Lilly an attractive investment option. Looking even further into the future, the financing giant Goldman Sachs suggests sales of anti-obesity drugs could hit an astounding $100 billion by 2030—positioning you to profit alongside Eli Lilly as it addresses strong market demand for its novel weight-loss treatments.
- To further diversify your investing portfolio, you might consider Alphabet's robust financials. With its substantial profits from digital advertising and its commanding position in the industry, Alphabet (GOOGL, GOOG) has the potential to generate substantial returns for investors.
- Investing in companies with strong growth potential, such as Eli Lilly, can also yield significant financial gains. The pharmaceutical giant's innovative weight-loss therapy, Zepbound, has shown promising results in clinical trials and could tap into a large market, potentially earning Eli Lilly (LLY) up to $100 billion by 2030, according to Goldman Sachs.
