After a stock market sell-off in 2022 that hit numerous companies, the start of a new year seems to have Wall Street optimistic. Since Jan. 1, the Nasdaq Composite index has risen 12% as several stocks have begun recovering from last year’s declines.
Apple (AAPL -0.55%), Warner Bros. Discovery (WBD 1.27%), and Advanced Micro Devices (AMD 1.28%) have each enjoyed substantial stock rises in 2023. These companies suffered from macroeconomic headwinds last year, but likely have lucrative futures over the long term.
As a result, now is an excellent time to invest in these companies before they fully recover from 2022’s challenges. Here’s why Apple, Warner Bros. Discovery, and AMD are no-brainer buys right now.
Apple leads numerous industries
Apple shares have climbed 20% since Jan. 1, with investors rallying over the company’s moves out of China for manufacturing and its prospects in augmented/virtual reality. However, the growth is also consistent with Apple’s history of reliable gains. Over the last five years, the company’s stock has risen 250% and increased by 881% over the last decade.
Additionally, the iPhone company has enjoyed annual revenue growth of 48% to $394.33 billion since 2018, with operating income climbing 68% to $119.44 billion over the same period. The financial development has largely been driven by the wide adoption of the company’s products and services.
The company has substantial market share in a variety of high-profit industries. In smartphones, Apple has a leading 27.63% market share, ahead of Samsung. Meanwhile, the company was responsible for 17.2% of all personal computer shipments in the U.S. in the fourth quarter of 2022, a figure that has risen from 11.5% in Q1 2013.
Additionally, Apple has a swiftly growing digital services business that has seen it achieve the second-largest market share in music streaming with Apple Music’s 13.7%, behind only Spotify.
Apple is home to a potent brand, with the popularity of its offerings likely to keep it flourishing for years, making its stock a no-brainer buy.
Warner Bros. Discovery creates high-quality content
Warner Bros. Discovery had a particularly troubling year in 2022, with its stock sliding roughly 63% over the year. However, its stock has jumped 55% year to date, with investors feeling bullish after the company delivered a smash hit in video games and shifted to a promising media strategy.
Despite the recent rally, Warner Bros. Discovery’s stock remains down 43% year over year, signaling an excellent time to invest in this entertainment giant.
Prior to the merger with Discovery in April 2022, WarnerMedia seemed to be in a rut with its franchises. The company is home to strong brands such as DC, Harry Potter, The Lord of the Rings, and Game of Thrones. However, box office performances from DC movies and the Harry Potter-themed film series Fantastic Beasts over the years suggested dwindling consumer interest, likely due to lackluster offerings.
Warner Bros. Discovery seems to be turning it around, though, with the company ready to maximize profits by prioritizing quality and compelling storylines. The company released the Harry Potter-themed video game Hogwarts Legacy on Feb. 10, which has proved a massive hit by earning $850 million and selling over 12 million units in its first two weeks. Meanwhile, its streaming platform HBO Max brought 8.2 million viewers to the final episode of its series The Last Of Us, averaging 30.4 million spectators so far during its first six episodes.
Warner Bros. Discovery is on a roll with its content, with a winning strategy and potent franchises likely to see its stock soar in the coming years.
Advanced Micro Devices’ strength in hardware continues
AMD shares plunged 55% in 2022, primarily fueled by PC market declines. However, the company has pivoted to less consumer-reliant segments, such as data centers and embedded products, which has seen its stock skyrocket 50% since the start of the year.
This tech giant has quickly expanded over the years with the success of its PC components, such as graphics processing units (GPUs) and processors. Many consumers have turned to AMD for these devices when building custom PCs for activities such as gaming and video editing.
However, the company is now also a leading name in the semi-custom chips that power popular game consoles like Sony‘s PlayStation 5, Microsoft‘s Xbox Series X|S, and virtual reality headsets such as the Meta Quest 2 and HTC‘s Vive. Lucrative partnerships like these boosted AMD’s earnings in fiscal 2022, with revenue rising 44% year over year to $23.6 billion despite macroeconomic headwinds.
In addition to providing custom chips in a number of products, AMD has a booming data center business that reported a revenue rise of 63.6% to $6.04 billion.
AMD is home to hardware that is crucial to the development of countless industries, from gaming to could computing and even artificial intelligence. With its stock down 16% year over year, AMD’s stock is a screaming buy right now.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, Spotify Technology, and Warner Bros. Discovery. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.