Three Stocks That Tripled in Value in 2024: Which One to Watch in 2025
In 2024, three stocks caught the attention of investors with their impressive growth. Sweetgreen (SG), Reddit (RDDT), and IonQ (IONQ) tripled in value during this year. While it’s challenging to predict which stock will perform best in 2025, we’ll analyze each company’s strengths and weaknesses to make an informed decision.
Sweetgreen: From High-Growth Business to Profitable Model
When Sweetgreen went public in 2021, its high growth rate caught the attention of investors. However, the losses associated with this rapid expansion became a concern for many. To address these concerns, management introduced the Infinite Kitchen model at the end of 2023.
The Infinite Kitchen focuses on automation through kitchen technology, which allows salad bowls to be mostly prepared by robotic machines. This innovation has the potential to significantly reduce labor costs and improve unit economics.
By the third quarter of 2024, Sweetgreen had equipped 10 out of its 225 locations with the Infinite Kitchen model. As this technology scales up in 2025 and beyond, investors expect profits to rise, contributing to the stock’s impressive growth.
Revenue Growth Slowing Down
While Sweetgreen’s revenue growth has slowed down due to a focus on profitability, its earnings before interest, taxes, depreciation, and amortization (EBITDA) have already started to increase. The Infinite Kitchen model is still in its early stages of adoption, but investors are hopeful that it will continue to drive profits.
SG Operating Revenue (Quarterly YoY Growth)
| Q1 2024 | Q2 2024 | Q3 2024 |
| — | — | — |
| 10% | 8% | 6% |
As shown in the chart above, Sweetgreen’s revenue growth has slowed down quarter-over-quarter. However, investors remain optimistic about the company’s future prospects.
Reddit: Growing Fast and Expanding Internationally
Reddit is growing rapidly and has barely tapped into potential users in international markets. With only around 100 million active users, there’s still significant room for expansion.
The platform’s popularity continues to grow, driven by its community-driven approach and user-friendly interface. Reddit’s growth trajectory suggests that it could quintuple or more in the long term.
IonQ: Pioneering Quantum Computing
IonQ has emerged as a leader in the quantum computing industry due to third-party validation from reputable sources such as major cloud computing platforms and government contracts.
The company’s products have advocates, including within the U.S. government, which has signed a $55 million contract with IonQ to tackle practical considerations of deploying quantum computers at scale.
IonQ Stock: A Promising Investment
Many analysts believe that the quantum computing industry will be valued in the hundreds of billions of dollars someday. If IonQ is truly at the forefront of this revolution, it could still have substantial long-term upside.
However, my pick for 2025 is Sweetgreen stock due to valuation. Trading at 5 times sales, Sweetgreen is not necessarily cheap compared to other restaurant stocks with slowing growth. However, its growth has slowed down as it focuses on profitability, and the Infinite Kitchen model could improve unit economics.
Should You Invest in Sweetgreen?
Before investing in Sweetgreen, consider the following:
The Motley Fool’s Stock Advisor analyst team has identified 10 stocks that they believe will produce monster returns in the coming years. While Sweetgreen wasn’t one of them, it’s essential to do your own research and evaluate the company’s prospects.
Conclusion
In conclusion, while all three stocks have impressive growth rates, I believe Sweetgreen is the best buy for 2025 due to its valuation and potential for improvement through the Infinite Kitchen model. However, investors should consider their individual financial goals and risk tolerance before making a decision.
It’s essential to conduct thorough research and consult with a financial advisor before investing in any stock. The Motley Fool recommends Sweetgreen, but it’s crucial to evaluate the company’s prospects based on your own analysis.
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(Note: This article is not an investment advice, but rather an analysis of the three stocks mentioned.)