The best-performing stock of the year rose nearly 2,000%, while the second best averted disaster to log a tenfold gain in a wild 2023

By Mark DeCambre

Forget about the Magnificent Seven and AI. The stocks that did the absolute best during the year were tied to biotech and crypto - along with one car-related company.

Quick, name the best-performing stock of 2023 so far.

No, it isn't related to artificial intelligence - although shares of AI-linked chip maker Nvidia Corp. (NVDA) have surged more than 200% thus far on the year.

The so-called Magnificent Seven group of stocks, which includes Nvidia, have produced illustrious year-to-date returns. Both collectively and individually, those stocks have been all the rage on Wall Street this year.

Apple shares (AAPL) have gained nearly 50% so far this year, while Microsoft's stock (MSFT) has risen by about 56%, both classes of Google parent Alphabet's stock (GOOG) (GOOGL) have risen nearly 60%, shares of Amazon (AMZN) have rallied over 80%, Tesla's shares (TSLA) have more than doubled and the stock in Facebook parent Meta Platforms (META) has almost tripled in the period, according to FactSet data.

However, none of those stocks can hold a candle to the best performers of 2023, as gauged by MarketWatch.

Based on companies that boasted a market value of at least $1 billion as of Dec. 26, the No. 1 and No. 2 performers were Soleno Therapeutics (SLNO) and online used-car dealer Carvana (CVNA). Their stocks have registered the best gains of the year, according to data commissioned by MarketWatch and compiled by Dow Jones Market Data.

Shares of Soleno have enjoyed a stratospheric advance, up around 1,900%, as the biotech company in the fall announced positive results for its diazoxide choline extended-release tablets designed to treat Prader-Willi syndrome, a rare genetic disease that can lead to intellectual disability, obesity and other symptoms.

Representatives of Soleno didn't immediately respond to an email requesting comment.

Meanwhile, Carvana's stock skyrocketed 1,050% as the automotive retailer, which had been struggling to reduce its debt load, staged a turnaround for the ages that helped it stave off a cash crisis.

Mike McKeever, head of capital markets at Carvana, characterized 2023 to MarketWatch "as a defining year" for the company. Shares of competitor CarMax (KMX) and the U.S.-listed stock of Auto Trader (UK:AUTO) (ATDRY) were up a relatively pedestrian 28% and 46%, respectively, so far this year.

Read: The 10 days that moved the stock market the most in 2023

Other notable outperformers on the year include buy-now-pay-later lender Affirm Holdings (AFRM), which has soared more than 400% thus far in 2023.

Biotech and biopharma companies - which are known for their volatility - as well as crypto-related entities were among other stocks that stood out in what has been described as the "weirdest bull market in decades," with the S&P 500 SPX and the Dow Jones Industrial Average DJIA hovering at or near record highs on the heels of policy moves by the Federal Reserve that imply that the central bank is satisfied with the outcome of its quest to vanquish post-pandemic inflation.

   Symbol  Name                                 Market value  2023 % change 
   SLNO    Soleno Therapeutics Inc              1,222.1       1,923.7 
   CVNA    Carvana Co. Class A                  10,693.2      1,030.0 
   CIFR    Cipher Mining Inc                    1,268.2       789.3 
   MARA    Marathon Digital Holdings Inc.       6,002.0       688.3 
   IMGN    Immunogen Inc.                       8,328.5       501.8 
   MLTX    MoonLake Immunotherapeutics Class A  3,842.9       486.1 
   CLSK    Cleanspark Inc.                      2,169.0       475.5 
   BBIO    BridgeBio Pharma Inc.                7,304.9       451.0 
   AFRM    Affirm Holdings Inc. Class A         15,098.8      417.5 
   RIOT    Riot Platforms, Inc.                 3,583.0       411.8 
   Source: 

What do those performances mean for next year? It's hard to say.

Momentum can turn on a dime, and in-favor sectors can quickly lose ground to new high-flying market darlings.

Be careful out there.

Check out:

What a strong 'Santa Claus rally' says about the U.S. stock market in January - and 2024

One of Wall Street's biggest bears says the Fed is giving investors a good reason to be bullish in 2024

-Mark DeCambre

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

12-28-23 0940ET

Copyright (c) 2023 Dow Jones & Company, Inc.