The S 500 (SNPINDEX: ^GSPC) soared 24% last year as investors piled into the "Magnificent Seven," a group of mega-cap stocks that collectively account for more than one-quarter of the index. All seven more than doubled the S 500's return in 2023, but Nvidia, Meta Platforms, and Tesla performed especially well. Their triple-digit gains landed them among the top 10 stocks in the S 500.

However, the Magnificent Seven look pricey with a collective valuation of 30 times forward earnings, especially when the broader S 500 trades at 20 times forward earnings. Of course, those premium valuations may be justified in several cases, but investors should still consider diversifying in 2024. (NASDAQ: ROKU) and Shopify (NYSE: SHOP) look attractive at their current valuations, and both stocks are widely accessible at less than $100 per share.

Roku shares jumped 30% following its third-quarter report as investors cheered better-than-expected results. Revenue growth accelerated to 20%, up from 11% in the prior quarter, driven by a rebound in advertising and strong demand for Roku-branded TVs. On the bottom line, the company reported non-GAAP EBITDA of $43 million, up from a loss of $34 million in the prior year. Investors can expect similar momentum in the coming years.

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Source Fool.com