Quick, let’s take a moment to appreciate the best-performing stock of 2023. And no, it’s not related to artificial intelligence like Nvidia Corp. NVDA, which has seen an impressive surge of over 200% this year.
We’re talking about the Magnificent Seven group of stocks that have taken Wall Street by storm. Apple shares AAPL have soared nearly 50%, while Microsoft’s stock MSFT has experienced a rise of about 56%. Both classes of Google parent Alphabet’s stock GOOG GOOGL have seen a near-60% increase, and shares of Amazon AMZN have rallied over 80%. Tesla’s shares TSLA have more than doubled, and the stock of Facebook parent Meta Platforms META has almost tripled in value this year, according to FactSet data.
But even these impressive performances are overshadowed by the best performers of 2023, as gauged by their market value as of Dec. 26. Soleno Therapeutics SLNO and online used-car dealer Carvana CVNA take the crown as the top gainers. These stocks have shown remarkable growth, outpacing the rest in terms of returns.
Soleno’s stock has experienced an extraordinary ascent of over 1,900%. This biotech company made waves in the fall with its announcement of positive results for its diazoxide choline extended-release tablets, which are designed to treat Prader-Willi syndrome, a rare genetic disease that can lead to intellectual disability, obesity, and other symptoms.
It’s important to note that representatives of Soleno were unavailable for immediate comment.
So while 2023 has witnessed some incredible stock performances, it is clear that Soleno Therapeutics and Carvana have truly stolen the show.
A Year of Remarkable Growth for Carvana and Other Notable Companies
Carvana, the struggling automotive retailer, experienced an astonishing turnaround in 2023 that helped the company overcome its debt burden and avoid a cash crisis. As a result, Carvana’s stock saw an incredible surge of 1,030%. In comparison, competitors like CarMax and Auto Trader UK saw more conservative gains of 28% and 45% respectively.
In addition to Carvana, another standout performer in 2023 was Affirm Holdings, a buy-now-pay-later lender, which saw its stock soar over 400% during the year.
The bull market of 2023 was also notable for the strong performance of biotech and biopharma companies, as well as crypto-related entities. This unique market environment, described as the “weirdest bull market in decades,” coincided with the S&P 500 and the Dow Jones Industrial Average reaching record highs. The Federal Reserve’s policy actions, aimed at tackling inflation, seemed to have satisfied investors.
As we look ahead to the next year, it is important to remember that market momentum can shift quickly, and sectors that are currently performing well may lose ground to new rising stars. Therefore, caution is advised.
For further insights into the market, consider reading about the implications of the “Santa Claus rally” on the U.S. stock market in January and throughout 2024. Additionally, one of Wall Street’s prominent bears believes that the Federal Reserve’s actions provide a compelling reason to be optimistic about investing in 2024.
