2 Obvious Tech Stocks to Buy Right Now

As this year comes to a close, it’s time to start thinking about 2025. What stocks should investors consider as new purchases in the new year?

Well, if you ask me, there are two stocks that I think are obvious buys heading into the new year. Let’s take a look at them.

Image source: Getty Images.

1. Reddit

First of all up East Reddit (RDDT 5.59%).

Reddit is a relatively new public company, having started via a initial public offering (IPO) less than a year ago. Nonetheless, Reddit investors have been handsomely rewarded, with the stock up more than 215% since its IPO.

Either way, Reddit is definitely not young business. Founded almost 20 years ago, Reddit hosts arguably the most popular series of message boards, and overall, it is one of the most visited websites on the Internet. In fact, in its most recent quarter (the quarter ended September 30), Reddit reported more than 97 million daily unique actives (DAUq), representing 47% year-over-year growth. other in the category.

Additionally, the company is increasingly focusing on improving its financial situation. fundamentals. Income In its most recent quarter hit an all-time high of $348 million, up 68% from the previous year. Likewise, the company also reported a modest – but symbolically significant – profit of $29 million.

In a nutshell, Reddit is an obvious choice because of its growth potential. Advertisers love it because they can micro-target their ads on its platform to particular affinity groups. In turn, Reddit will likely carve out a significant – and lucrative – niche within the rapidly growing market. digital advertising ecosystem. Investors looking for growth should take note.

2.Tesla

Then there is Tesla (TSLA 4.34%).

Without a doubt, one thing is clear: Tesla stock is back. After three years of more or less sideways movements, Tesla shares have soared more than 80% in the last three months alone.

So what does that give?

In short, the stars are aligning for the electric vehicle (EV) manufacturer after several years of disappointments.

First of all, it must be said this CEO Elon Musk‘s close relationship with President-elect Donald Trump has obviously played a big role in the resurgence of Tesla shares. Since Trump’s election victory, Musk has appeared alongside Trump on numerous occasions, including a SpaceX launch in Texas, multiple events at Trump’s residence at Mar-a-Lago, and the reopening of Notre-Dame Cathedral in Paris. In turn, investors are betting on Musk have the ear of new Trump administration.

This is important for Tesla because the company is entering a phase where overcoming regulatory hurdles will be crucial. To deploy fully autonomous driving capabilities, for example, Tesla will need approval from various federal agencies, such as the Department of Transportation and National Highway Safety Administration. Additionally, it might be necessary, or at least preferable from Tesla’s perspective, for the government to pass legislation setting guidelines for autonomous driving. Musk having a key role within the administration, it is likely that he will have a bigger role in the development and implementation of business-friendly rules.

Second, Tesla’s finances have improved. Specifically, the company’s gross margin increased to around 20% during its most recent quarter (completed September 30). This is the second consecutive increase after several years of declining profitability.

TSLA gross profit margin (quarterly) data by Y Charts

In summary, Tesla is worth considering as investors head into 2025. The company is well-positioned to take advantage of a favorable regulatory environment, particularly if it can successfully roll out a significant update to its fully autonomous driving software. Indeed, 2025 could be the year Tesla investors have been waiting for. Plus, this could be just the beginning for a company that has ambitious plans that span many years.