Three Stocks That Tripled in 2024: Which Is the Best Buy for 2025?

Sweetgreen (SG 3.27%) is a chain of salad restaurants that made its stock market debut in 2021. At the beginning of 2024, its shares were down nearly 80% from their initial public offering (IPO) price. This poor performance suggested that investors were not interested in this salad-focused company. However, 2024 brought a surprising turnaround.

By November 2024, Sweetgreen's stock had tripled in value, marking a remarkable recovery. The company experienced significant gains, though it did finish the year with some losses. Sweetgreen was not alone in its success; shares of Reddit (RDDT 7.13%) and IonQ (IONQ 10.84%) also saw impressive increases, each more than tripling in value throughout the year.

This article explores why these three stocks performed so well in 2024 and provides insights into which one may be the best investment for 2025.

Sweetgreen: Up 184%

Sweetgreen entered the public market as a high-growth business, but its financial losses initially deterred investors. At the end of 2023, management addressed these concerns with a vision for the "Infinite Kitchen" concept. This new approach focuses on automation, allowing robotic machines to prepare most of the salad bowls, potentially reducing costly labor expenses.

For context, during the first three quarters of 2024, Sweetgreen allocated 28% of its revenue to labor and related costs—its biggest operating expense. The implementation of robotic technology could significantly enhance profitability by lowering these expenses.

By the close of the third quarter in 2024, Sweetgreen had expanded its Infinite Kitchen model from just two to ten of its 225 restaurant locations. As this automation technology continues to develop and scale in 2025, investors are optimistic about a corresponding rise in profits, which contributed to the stock's increase this year.

Although revenue growth has slowed as the company focuses on profitability—opening new restaurants at a reduced pace—its earnings before interest, taxes, depreciation, and amortization (EBITDA) are already improving. The positive effects of the Infinite Kitchen initiative have not yet fully materialized, promising more improvements ahead.

Reddit: Up 224%

Reddit's stock surged by 224%, an impressive feat considering that its IPO took place in March 2024. Reddit's recent financial performance has been strong, showing significant growth that investors could not overlook.

Over the last two years, the social media platform saw a remarkable acceleration in top-line growth, a relatively rare opportunity for investors. In the third quarter, Reddit reported a year-over-year revenue increase of 68%, reaching $348 million. This success is attributed to the addition of millions of new users and rising advertising demand.

In addition to its revenue growth, Reddit has improved its already strong gross margin, surpassing 90% in the third quarter. With increasing revenue and gross margin, free cash flow continues to rise as well.

Part of Reddit's growth strategy involves expanding into international markets. The company skillfully utilizes artificial intelligence (AI) to translate its existing content into various languages, facilitating adoption in new regions. Currently, there are about 49 million users in international markets, indicating a significant opportunity for future growth.

IonQ: Up 237%

IonQ's stock more than tripled in value during 2024, with over 400% growth occurring in the last quarter alone. Although skepticism about the quantum computing sector is common, IonQ also achieved noteworthy milestones throughout the year.

The complexity of quantum computing makes it challenging for most investors to assess the value of companies like IonQ, which uses a trapped ion method for its technology. Given the diverse approaches to quantum computing, it's essential to rely on external validation.

IonQ has received such validation as its hardware is accessible across major cloud platforms, setting it apart as a leading player. Furthermore, significant partnerships, like a $55 million contract with the U.S. Air Force Research Lab, have demonstrated the practical potential of its technology.

Which Stock to Buy for 2025?

Many analysts project that the quantum computing sector may grow into a multi-billion-dollar industry. If IonQ continues to lead in this field, it could present considerable long-term investment potential.

Reddit is also expanding rapidly, with significant room for growth, particularly in international user bases. Its current count of around 100 million active users could increase significantly in the years ahead as it taps into new markets.

While both IonQ and Reddit possess their own upside potential for 2025, the outlook for Sweetgreen seems more promising due to its valuation. Currently trading at five times sales, Sweetgreen isn't necessarily cheap, especially with its growth slowing. Management is prioritizing profitability; if the Infinite Kitchen concept achieves operational efficiencies, the company may resume aggressive expansion plans.

Previously, Sweetgreen hinted that it could one day operate 1,000 locations, compared to fewer than 250 today. Achieving this growth depends on reducing operating costs, a goal that Sweetgreen may be nearing. For these reasons, Sweetgreen stock stands out as the best investment choice for 2025 among the three examined.

stocks, investment, growth