Investors may be wary of the current market conditions, but they may not realize that bull rallies often follow a market correction. So, they should consider adding some high-quality stocks to their portfolio that can benefit from a potential bull rally. Two such stocks that can prove to be amazing deals in the long run are Snowflake (SNOW -0.21%) and Alphabet’s (GOOG -0.73%) (GOOGL -0.75%).
Snowflake is a leading cloud-data platform provider. Its platform allows users to store and analyze their data without having to worry about data silos. The platform also works with providers such as Amazon’s (AMZN 0.79%) AWS, Microsoft’s (MSFT -0.09%) Azure, and Google Cloud. The company is also well-positioned to benefit from the estimated 118 zettabytes of data expected to be generated in 2023, with an estimated target addressable market (TAM) of $248 billion. Furthermore, the company boasts a usage-based pricing model and the first-mover advantage in creating a data marketplace that facilitates data collaboration with customers and partners. Snowflake reported robust full-year results with revenues up by 69% year over year to $2.06 billion and free cash flow increasing by 512% year over year to $496.5 million. Additionally, despite not yet having a GAAP-based (generally accepted accounting principles) profitable, it has been close to achieving that in the coming years.
Alphabet is a leader in online advertising, search engine and artificial intelligence. The company is set to benefit from the global search-engine market size that is expected to grow from $167 billion in 2021 to $349 billion in 2028. Additionally, these growth opportunities are enabled by the company’s development of generative artificial intelligence capabilities. Furthermore, the company has been investing in Google Cloud, a segment that accounted for an 11% share of the $217 billion cloud-infrastructure services market at the end of September 2022. To further strengthen their position in the market, Alphabet is focused on cost optimization and increasing profits.
Clients of both Snowflake and Alphabet will profit from their adoption of, and investments in, powerful tech stocks. The two stocks have the potential to provide incredible returns in the long run, and investors would be wise to buy ahead of the bull rally.
