Three Stocks That Tripled in 2024: Analyzing Sweetgreen, Reddit, and IonQ for 2025

Sweetgreen (SG) is a restaurant chain specializing in salads that made its debut on the stock market in 2021. By the beginning of 2024, its stock price had dropped by almost 80% from its initial public offering price, leading many investors to lose interest. However, the situation turned around spectacularly in 2024, with the stock more than tripling by November.

Despite some losses towards the end of the year, Sweetgreen still enjoyed a remarkable performance in the stock market. It wasn't alone; both Reddit (RDDT) and IonQ (IONQ) experienced similarly impressive gains, with their stocks also tripling in value throughout the year.

This article will explore the reasons behind the strong performance of these three stocks in 2024 and will identify which one may be the best investment for 2025.

Sweetgreen: A Growth Story

Sweetgreen was recognized as a high-growth business at its IPO, but its significant losses made investors wary. Towards the end of 2023, the management team started to address these concerns by discussing their vision for the "Infinite Kitchen" model, which focuses on automation. This shift has drawn positive attention from investors in 2024.

The Infinite Kitchen concept relies on kitchen technology that enables the majority of the salad preparation to be handled by robots. This is a major development since labor costs represent the most considerable operating expense for the company, accounting for 28% of its revenue during the first three quarters of 2024. If automation can help reduce these costs, it could greatly enhance profitability.

As Sweetgreen's Infinite Kitchen model begins to take shape, the company started 2024 with just two of its 225 locations featuring these advanced technologies. By the end of the third quarter, this number had increased to ten. As this trend continues into 2025, investors hope to see profits rise, which was a key driver behind Sweetgreen's stock surge this past year.

While revenue growth has slowed down as the company narrows its focus on profitability, Sweetgreen's earnings before interest, taxes, depreciation, and amortization (EBITDA) are already improving, and the full impact of the Infinite Kitchen model is just beginning.

Reddit: Rapid Revenue Growth

The 224% increase in Reddit's stock price is especially noteworthy since it began trading publicly only in March. The company's financial performance is impressive, characterized by accelerating top-line growth over the past two years. In the third quarter, Reddit reported a 68% year-over-year revenue increase, reaching $348 million. The surge in advertising demand and millions of new users have driven this growth.

Moreover, Reddit has seen a significant improvement in its already strong gross margins, which surpassed 90% in the third quarter. This combination of rising revenue and margins has led to burgeoning free cash flow for the company.

One major factor contributing to Reddit's success has been its expansion into international markets, facilitated by effective use of artificial intelligence (AI) for content translation. As Reddit's user base grows beyond the 49 million in international markets, there is substantial room for future growth.

IonQ: Quantum Computing Gains

IonQ's stock soared by an impressive 237% in 2024, with more than 400% of that growth occurring in the final quarter of the year alongside other quantum computing stocks. While some may be skeptical about investing in a hot sector like quantum computing, IonQ has achieved significant milestones in 2024.

The challenge with evaluating a quantum computing company like IonQ is that few investors are well-versed in the field, making it difficult to assess the value of its products. IonQ utilizes a trapped ion approach among various methods of quantum computing.

In this case, external validation can be a good indicator of potential success in the industry. IonQ has made its hardware available on all major cloud computing platforms and has gained recognition from influential advocates, including the U.S. government. Notably, the Air Force Research Lab recently signed a $55 million contract with IonQ to help address practical considerations regarding the deployment of quantum technology.

Best Stock for 2025

Many analysts predict that the quantum computing industry could reach a valuation in the hundreds of billions, making IonQ a promising long-term investment if it truly occupies a leading position in this revolution. Likewise, Reddit’s rapid user growth and potential for tapping into international markets present significant future upside, suggesting that the company could considerably grow its base from its current 100 million active users.

However, if looking for a more straightforward approach to potential upside in 2025, Sweetgreen stands out due to its current valuation at five times sales. While this is not cheap for a restaurant stock grappling with slower growth, Sweetgreen's retreat from aggressive growth while focusing on profitability could pay dividends in the coming years.

The management has indicated aspirations of expanding to 1,000 locations compared to under 250 today, achievable mainly through reducing operating expenses. Many believe that achieving this goal is within reach. Hence, Sweetgreen is suggested as the top stock for investment in 2025 among the three discussed.

This analysis does not reflect a financial position in any of the mentioned stocks. Investors are encouraged to conduct their research before making investment decisions.

stocks, investment, growth