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27 April
Have $3,000? Buying These 2 Phenomenal Growth Stocks in 2024 Would Be a Genius Move.
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Even in a still-challenging macro environment, you can make your money work for you and gradually move closer to your financial goals. Investing in stocks can be a great way to boost your portfolio and compound returns that add to your wealth-building journey through the years.

If you have $3,000 to invest -- money that you don't need for near-term financial obligations and can leave in your portfolio for several years at least -- here are two phenomenal growth stocks to consider.

1. Fiverr

Fiverr International (NYSE: FVRR) is witnessing a surge of growth as the freelance platform capitalizes on the ways that artificial intelligence (AI) is changing the gig economy. You could be forgiven for wondering how a company that revolves around facilitating the relationship between buyers and sellers of freelance services would fare amid the AI revolution.

While it's still early days, Fiverr's moves to refine its services so that buyers find the help they want and freelancers can cater to buyers' changing needs seem to be paying off handsomely. The company has added a growing collection of AI-driven services over the last year. These include not only new categories of AI-centric skills that freelancers can offer, but also the launch of services like Fiverr Neo, which uses AI to match buyers and sellers for projects.

Management estimates that AI drove a 4% lift to business in 2024, noting that buyers are focusing more on complex services over simple services. Buyers can be anyone from individuals to large businesses.

Complex services are those that require a person to deliver an end result, but where AI can help drive better efficiency. One example would be mobile app development.

Simple services include jobs like translation or voice-over work that Fiverr management estimates are more likely to experience shifts from the adoption of AI.

With Fiverr buyers focusing more on complex services, these are becoming a larger driver of its business, an important sign that it doesn't have to be too reliant on growth from simple services. In fact, about 32% of the platform's gross merchandise value (GMV) was derived from complex services in 2023. Complex services GMV rose 29% in 2023, more than double the growth rate in 2022.

On the flip side, looking back at the full-year 2023, 23% of Fiverr's GMV was derived from simple services. Not only are complex services accounting for more of GMV, but management has also noted that the average transaction for complex services is approximately 30% larger.

Revenue grew 7% year over year to $361 million in 2023, and the company showed a profit according to generally accepted accounting principles (GAAP). Net income totaled $3.7 million, compared to a net loss of $72 million in 2022.

Fiverr is also expanding its take rate, and spend per buyer was up 6% at the end of last year compared to the prior one. This business looks to be headed in the right direction, and investors might want to take note now.

2. Airbnb

Airbnb (NASDAQ: ABNB) continues to demonstrate that the ongoing travel resurgence is just one piece of its growth story. The company's financials look great, the business is expanding at a solid pace, and growth versus pre-pandemic days is even more impressive than its year-over-year figure.

Management is working to make the business of hosting a stay on Airbnb just as mainstream as booking a stay. Not only are travelers flocking to the platform, but active listings are also surging as more people see the income opportunity for listing homes.

As of the end of 2023, the company had more than 5 million hosts globally. Active listings on the platform surpassed 7.7 million by the close of the year, an 18% increase from the year-ago period and an all-time high for the business. Hosts earned close to $60 billion in 2023.

Airbnb has continued to update its platform to grow its number of hosts and guests. Easier price-setting tools, discounts on long-term stays, and improved payment options are just some of the hundreds of upgrades in the last few years. Management said in the 2023 shareholder letter that host cancellations dropped 36% in the final quarter of last year compared to the same period in 2022.

Both short-term and long-term bookings are key drivers of growth for Airbnb. As of the final quarter of 2023, long-term stays (bookings of 28 days or more) represented 19% of gross nights booked on the platform. Now, about 25% of all long-term stays booked are for three months or more, meaning that people are not just using it for vacation travel.

Revenue was about $10 billion in 2023, up 18% from the prior year and 106% from four years ago. Profits for the 12-month period totaled around $5 billion, while free cash flow came to just shy of $4 billion.

Airbnb benefits from all types of travel spending, catering to travelers of all budgets and needs. With a profitable, cash-rich, and asset-light business, this stock looks like a no-brainer buy right now.

Should you invest $1,000 in Fiverr International right now?

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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb and Fiverr International. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.