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The share so far in 2024 is tesla (NASDAQ:TSLA) and apple (NASDAQ:AAPL) did not perform well at all, decreasing by 28% and 11.5% respectively. As a result, the company doesn't seem all that “great” and the Magnificent 7 spot should probably be taken by another tech stock.
Therefore, in this column, I would like to take the initiative in selecting their successors. Some of the criteria I used to select a successor include the strength of the company's business, the degree of positive outlook, and the stock's performance over the past year. We'll also add additional picks in case another one of the Magnificent 7 tech stocks starts to stumble soon.
Super microcomputer (SMCI)
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super microcomputer (NASDAQ:SMCI) has made significant profits by selling servers and other hardware that work in conjunction with chips that generate artificial intelligence. For example, last quarter's revenue more than doubled compared to the same period last year, and net income increased to $296 million from $176 million in the same quarter in 2022.
Given the continued and rapid adoption of AI and data center affinity for SMCI products, the company has a very bright future.Investment banks support this argus SMCI said it is poised for several years of strong sales growth and margin expansion.The bank even compared its stock price to Apple. Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) in the early days.
SMCI stock has soared an incredible 299% in the past three months, and an incredible 1,028% over the last year.
ServiceNow (Now)
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ServiceNow (NASDAQ:now) offers software that automates IT tasks, and the company released an AI-powered app in the third quarter of 2023 to great success.
The company's CEO Bill McDermott suggested in January that NOW was able to charge unusually high prices for its AI apps. He also suggested that the company's AI apps will increase productivity levels for companies by 40-50%. Going forward, NOW should continue to benefit from strong enterprise demand for high-quality AI apps.
Last quarter, NOW's revenue increased 26% year-over-year, and it expects operating income to increase 29% this quarter. And last month, investment bank Argus raised its price target on NOW stock to $910 from $770. The bank expects the company to benefit from continued upgrades to his AI app.
The stock has increased 10% in the past three months and 82% in the past 12 months.
MercadoLibre (MELI)
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mercadolibre (NASDAQ:Meri) is an e-commerce and fintech powerhouse in South America.
The company has an impressive user base of 218 million people and more than doubled its EPS last year.according to BaronsEPS is expected to rise 80% in 2024.
investment bank BTIG has a bearish buy recommendation on MELI stock after the company reported a decline in gross profit last quarter, but the bottom line was lower than analysts' average expectations due to tax payments.
One investor was also impressed with the company's fourth quarter results. Lakehouse Global Growth Fund. In a letter to clients, the fund wrote that MELI had achieved an excellent balance between growth and profitability.
As of the date of publication, Larry Ramer held long positions in SMCI and AMZN, and his wife held long positions in NOW. The opinions expressed in this article are those of the writer and are subject to InvestorPlace.com Publishing Guidelines..
