5 unstoppable stocks to invest $ 25,000 in right now
While the stock market offers few guarantees, the story is pretty clear on one thing: long-term investing is a winning proposition.
Since 1950, the much followed S&P 500 suffered 38 crashes or fixes of at least 10%. Despite these fairly common downward moves in the market, the benchmark eventually put every correction in the mirror and hit new all-time highs. When you invest in high quality, innovative companies, patience pays off.
If you have a good amount of money – say $ 25,000 – waiting to be invested, the following five Unstoppable Actions might be the perfect place to implement it right now.
Even though this is one of the biggest companies in the world, there might not be a stock that I’m more confident will go up in the long run. Amazon.com (NASDAQ: AMZN).
As many of you probably know, Amazon is the number one online retailer in the United States. In April, an eMarketer report put its online market share at 40.4%, more than 33 percentage points higher than the next closest competitor, Walmart. While retail typically generates low margins, Amazon has leveraged its popularity in e-commerce to sign up over 200 million people worldwide for a Prime membership. The fees Amazon collects from these memberships help increase its retail margins. Plus, it doesn’t hurt that Prime members are encouraged to spend more on the platform to get the most out of their membership.
What you might not know is that Amazon is also the leading player in cloud infrastructure services. Amazon Web Services (AWS) controls about 32% of the global cloud infrastructure market, according to Canalys. Because AWS generates significantly higher margins than other Amazon operations, AWS is typically responsible for generating 60% (or more) of the company’s operating revenue, although it only accounts for ‘one eighth of his income.
With Amazon’s operating cash flow expected to explode higher in the coming years, a realistic path to $ 10,000 per share exists.
Another unstoppable stock with an unusually bright future is the cloud-based ad technology company PubMatic (NASDAQ: PUBM).
The goal of PubMatic is simple. It aims to optimize the buying and selling of advertising space in real time. Unlike some of its peers, PubMatic operates as a Selling Platform (SSP), that is, it helps publishers sell their display space to advertisers. There are a number of perks of being an SSP that publishers will appreciate. For example, SSPs allow publishers to set floor prices for what they are willing to accept for advertising space. Additionally, they use machine learning to ensure that the best ads, not necessarily the most expensive ones, are selected for a user. This should help improve engagement and ensure that publishers and advertisers get their money’s worth.
Programmatic cloud-based advertising is expected to maintain a double-digit annual growth rate through the middle of the decade, if not well beyond, as content moves to mobile and online. As for PubMatic, it expects double-digit annual growth in programmatic ad spend on mobile, digital video, and connected / over-the-top TV through 2024.
If you’re wondering how a small cap stock like PubMatic holds up in a big advertising world, just know that existing publishers spent 30% more in the first quarter than in the previous year period, based on company results. net retention rate in dollars.
The weed could certainly be greener for long-term investors if they put their money into high-growth US marijuana stocks. In particular, the US multi-state operator (MSO) Cresco Laboratories (OTC: CRLBF) has all the necessary tools to enrich investors.
Like all publicly traded MSOs, Cresco has a rapidly growing retail presence. It recently opened its 33rd dispensary and, once its acquisition of Cultivate is completed in Massachusetts, it will hold enough licenses to eventually have more than four dozen retail outlets.
While Cresco is focused on a number of potential billion dollar cannabis markets, the most notable aspect of its retail expansion is its focus on limited license states. By choosing to operate in markets where retail license issuance is capped (e.g. Illinois and Ohio), Cresco Labs ensures that it will be able to effectively develop its brand and develop. ” achieve a healthy percentage of market share.
Don’t forget the company’s industry-leading wholesale operations. As the holder of a cannabis distribution license in California, Cresco is able to place proprietary and third-party potted products in more than 575 dispensaries across the Golden State. Wholesale is what gives this business incredible potential in the pot industry in the United States.
Few things are as unstoppable lately as rising house prices, which have been a big boon for a tech-driven real estate company. Red tuna (NASDAQ: RDFN). But even when mortgage rates eventually rebound from their all-time lows, Redfin should continue to gobble up market share and increase its real estate relevance.
First and foremost, Redfin is making its mark on the cost front. While traditional real estate companies charge up to 3% to represent a buyer or seller, Redfin charges between 1% and 1.5%, depending on the volume of business done with the company. A difference of 2 percentage points may not seem like much, but with a median home price for active listings of $ 385,000 in June 2021, according to Realtor.com, that means savings of up to $ 7,700 for a homebuyer or a seller using Redfin, as opposed to a traditional real estate company.
Redfin also provides a level of customization that buyers and sellers just aren’t used to. The company’s janitorial service charges up to 2.5% of the eventual sale price to work with homeowners on improvements and staging to maximize the value of their home. Meanwhile, the RedfinNow service in some cities allows the company to buy properties from sellers for cash. This means no haggling and an amazingly straightforward sales process. During the pandemic, Redfin also relied on 3D virtual tours to bring additional personalization to the buying side of the process.
As Redfin’s share of existing home sales has almost tripled since the end of 2015 (0.44% to 1.14%), investors should be convinced of the bright future of this growth stock.
Last but not least, Facebook (NASDAQ: FB) is another dominant investor in FAANG stocks who cannot confidently invest some (or all) of their $ 25,000 at this time.
When the curtain closed in the first quarter, Facebook had 2.85 billion people visiting its namesake site at least once a month. Additionally, an additional 600 million unique people have made their way to Instagram or WhatsApp, which the company also owns. Together, this represents 44% of the world’s population (3.45 billion) visiting an asset owned by Facebook each month. There isn’t a social media platform on the planet that remotely comes close to these numbers, which is why advertisers will pay through the nose for placement on Facebook.
What some people might not realize is that Facebook’s ad revenue growth isn’t even close to peaking. That’s because Facebook and Instagram are currently responsible for almost all of the company’s ad sales. Even though WhatsApp and Facebook Messenger are two of the most visited social sites on the planet, neither are significantly monetized yet. When that happens, Facebook’s sales, cash flow and profitability will skyrocket.
The icing on the cake, Facebook’s side operations (officially classified under “Other” in its quarterly operating results) are booming. Specifically, sales of the company’s Oculus virtual reality devices appear to be skyrocketing. If Facebook can add a meaningful secondary sales channel beyond advertising, it could drive that stock up significantly.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.