Investing $5,000 in Each of These 3 Stocks at the Start of 2024 Would Have Created a Portfolio Worth More Than $100,000 Today

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Normally, you might expect to achieve significant gains from stocks if you invest in them for years, perhaps decades. But given how hot the stock market has been this year, some stocks have produced life-changing returns in much shorter time frames. While chipmaker Nvidia is an obvious example of a top growth stock to own given its more than 2,500% return over the past five years, there are many other stocks that have produced incredible gains in a short stretch.

Three stocks that have done phenomenally well this year and have outperformed Nvidia are AppLovin (NASDAQ: APP), MicroStrategy (NASDAQ: MSTR), and Summit Therapeutics (NASDAQ: SMMT). If you invested $5,000 into each one of these stocks at the beginning of the year, the total of those investments would be worth more than $100,000 right now. Here’s a look at how much a $5,000 investment in each of these stocks would be worth as of Wednesday’s close, why they have done so well, and if they can still rise higher.

AppLovin is a high-flying software company that helps with monetizing games and applications. It’s also eyeing a potentially more lucrative opportunity involving its ad-tech software in e-commerce, which has many investors bullish that this scorching-hot stock, which is up an astounding 750% this year, could still go much higher.

If you invested $5,000 at the beginning of 2024 in AppLovin stock, you would be sitting on a near-$40,000 profit at this point. The tech company has been growing sales at an impressive pace this year with revenue through the first nine months of 2024 totaling $3.3 billion, representing an increase of 43% over the same period last year. Profits have also skyrocketed from $184 million to nearly $981 million during that time frame. The company has done so well that expectations were high that it would be added to the S&P 500. When that didn’t happen this month, shares of AppLovin nosedived on the news.

The stock still has a lot of potential, especially if its e-commerce business takes off. The risk, however, lies in its high valuation—trading at more than 120 times trailing earnings—which suggests significant future growth is already priced in. Investors who want to buy the stock today should tread carefully as its future returns could be limited.

Another top stock to own this year has been Summit Therapeutics, and it would have turned a $5,000 investment back in January into nearly $36,000 now. What’s noteworthy is that the pharma company doesn’t have any approved products. It may seem mind-boggling, but it gives you an idea of how much hope there is in the business, which has a market cap north of $13 billion.

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