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In my latest video, I looked back at the five best-performing stocks of 2024 and asked the big question: Are they still good buys going into 2025? 

Surprisingly, a few of them might be more hype than substance.

Let’s do this!

The Key Story

5 Best Stocks of 2024: Which Ones Are Still Worth Buying?

So what were the top stocks of 2024?

I used the AI Analyst on DividendData.com to screen for the highest returning stocks over the past year. For this example, I filtered specifically by U.S. companies.

Here is the full list…

The Big Winners:

• AppLovin (APP): Up an incredible 794%. This software company helps app developers optimize marketing and monetize ad space. Its free cash flow skyrocketed in 2024, and that growth looks sustainable. With its AI-driven ad optimization and a recent share buyback program, AppLovin’s future seems promising.

• Nvidia (NVDA): Soared 197.9%, and it’s not just hype. Its data center segment—fueled by AI demand—exploded, making up 86.5% of total revenue. Profits are real and enormous: 55% net margins, billions in free cash flow each quarter, and a massive cash position. Analysts predict more growth ahead, making Nvidia a clear standout.

High-Risk Bets:

• MicroStrategy (MSTR): Up 375%. While technically a software firm, it’s basically a leveraged play on Bitcoin. The company holds huge amounts of BTC financed with debt. If Bitcoin tanks, so does MSTR. For most long-term investors, this is a pure speculation that might not be worth the risk.

• Palantir (PLTR): Up 367.8%. Palantir’s data analytics software for governments and businesses is seeing strong revenue growth, but the valuation is sky-high. At around 60 times revenue, the stock would need years of 100% growth to justify its current price. That’s a big gamble.

One Wild Card:

• Vistra (VST): Up over 200%. This power generation and retail energy company posted a blowout quarter with huge revenue. Still, debt levels are high, and it’s unclear if those gains are sustainable. It pays a small and growing dividend, yet the consistency of its recent performance is uncertain.

Don’t FOMO:
You didn’t have to own any of these names to beat the market this year. My own portfolio, built on dividend growth and quality, has outperformed the S&P 500—without touching these high flyers. Over time, consistent investing in quality businesses can build real wealth, with far less risk than chasing momentum.

If you want more details on why I see some of these stocks as “winners” or “losers” for 2025, check out the full breakdown in the video.

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Thanks for the read! Let me know what you thought by replying back to this email.

— Zach

Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter