To The Moon

In the stock market, “ride on someone's coattails” is a typical characteristic, so the trillion-dollar club on Wall Street is definitely an elite club. If a company's market value reaches $1 trillion, it is recognized by the market and investors, and will attract more investors.

Currently, there are only 5 stocks in the trillion-dollar club on Wall Street, including $Apple(AAPL)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$ $Microsoft(MSFT)$ $Amazon.com(AMZN)$ $NVIDIA Corp(NVDA)$. Looking ahead to 2024, there are three stocks that are likely to join the club on Wall Street: $Meta Platforms, Inc.(META)$ $Tesla Motors(TSLA)$ $Berkshire Hathaway(BRK.B)$ $Berkshire Hathaway(BRK.A)$.

1.Meta Platforms: more than just social media

At present, Meta Platforms has a market value of $822 billion, the stock continues to rise 22% to about $400 to reach a market cap of $1 trillion with the number of shares holding steady.

Considering that the stock price has doubled this year and the valuation is reasonable, the possibility of achieving this target is still significant. In fact, Meta briefly became a trillion-dollar company in 2021, but lost this status during the technology stock crash in 2022.

Fortunately, several catalysts are expected to drive Meta to reclaim its status as a trillion-dollar company. Firstly, initial sales of the Mixed Reality headset Quest 3, released in October, were sluggish, but strong sales during the holiday season may suggest that the company's Reality Labs project may not be a boondoggle after all.

Secondly, progress in AI and cost controls in Reality Labs, coupled with a sustained recovery in advertising business, may continue to drive the stock price higher.

Currently, analysts expect Meta to reach $17.39 in earnings per share. At a share price of $400, that would give the stock a price-to-earnings ratio of 23.

2.Tesla: the leader in EV and AI

Tesla currently has a market cap of $750 billion, its stock price would have to rise 33% to reach a trillion dollar market cap. The electric vehicle manufacturer faces a mixed bag.

On one hand, the outlook for electric vehicle sales is weak, with many manufacturers reducing production. Tesla's various performance indicators have also clearly declined: revenue growth slowed to 9% in the third quarter, with vehicle revenue growth only at 5%, and profit margins shrinking due to price cuts.

The other hand, thanks to the AI boom and other potential positives, Tesla's stock price has soared this year despite these challenges. The company's Full Self-Driving (FSD) technology has been tested for years, autonomous taxi services are expected to be launched eventually, and according to CEO Elon Musk, the humanoid robot Optimus can now do yoga. Finally, we can't forget about the recently launched electric pickup Cybertruck.

Simply put, Tesla may not be able to get into the trillion-dollar club by 2024 with electric cars alone, but high-growth opportunities in other areas could help it achieve this goal.

3.Berkshire Hathaway: Buffett's empire

Berkshire Hathaway currently has a market cap of $776 billion. To reach $1 trillion, the stock would need to rise 29%. As a diversified investment company, there is no single strong catalyst for share price appreciation, but there is room for valuation improvement prospects.

If the US stock market rally in 2024, many of Berkshire's companies that rely on cyclical economic growth will benefit from this trend and their valuations will rise accordingly.

Berkshire's stock price has risen 29% in a year 22 times in its history, most recently in 2021. Unlike Meta and Tesla, the company is not a tech giant full of imagination, so it can not provide growth like the seven tech stocks, but it wins in Buffett's value investment strategy, and joining the trillion-dollar club of US stocks in the future is a high probability event.