The S&P 500 is at an all-time high, with 16.8% gains so far this year, and it’s showing no signs of slowing down. Likely rate cuts and falling inflation, coupled with strong corporate earnings, mean that the S&P 500 may well surge even higher. Tech is an important part of the boom, and two companies in particular are having a moment.
Spotify (NYSE: SPOT)
The largest music streaming platform in the world, Spotify holds an impressive 31.7% market share globally. The company is leaning heavily into artificial intelligence, with an AI algorithm powering its recommendations and an AI DJ offering personalized playlists with commentary. Spotify is also a top podcast destination, as well as the second-biggest audiobook platform.
With about 239 million paid users and 615 million users overall, Spotify continues to turn in strong performances. Its first quarter revenue was up 20% YOY, while the company has also slashed operating costs by more than 9%. The company generated $212 million in net income during the first quarter, compared to $242 million in net losses during the same period a year ago.
Uber (NYSE: UBER)
Uber Technologies is in a great place to ride the current tech boom. Not only does it operate the largest ridesharing platform on Earth, but the company also operates in both the commercial freight and food delivery sectors. Altogether, Uber has about 149 million monthly active users and 2.6 billion monthly trips. After stripping out expenses, its gross bookings created more than $10 million in first-quarter revenues this year.
But what has analysts really excited is the potential of autonomous self-driving cars. Uber already offers this option in Phoenix, through Alphabet’s Waymo. It also owns stakes in a couple of emerging autonomous vehicle companies, which should allow it to scale quickly once the technology is refined. Driver pay accounts for a large portion of Uber’s budget, so self-driving cars could help the company achieve stratospheric growth.
Lisa Fritscher has not positions in the companies mentioned. Stocks.News has positions in both.
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Contributing Writer
Lisa Fritscher has been a contributing writer for App.Stock.News since 2024. Lisa has been interested in investing since winning The Stock Market Game in high school. In more than a decade as a professional writer, she has written consumer-facing financial information and advice articles for a wide variety of publications. She has a Bachelor of Arts in Psychology from the University of South Flori...