The best stocks to invest $50,000 in now

In turn, Reddit is rapidly growing its ad revenue as marketers rush to microtarget precise audiences.

In its most recent quarter (the three months ending September 30, 2024), Reddit announced 68% revenue growth. Daily Active Uniques (DAUqs) increased by 47%. The company reported a net profit of $30 million, compared with a loss of $7 million in the same period a year earlier.

Admittedly, the data looks impressive. However, the reason I’m only allocating 5% of my hypothetical portfolio to Reddit is that the company doesn’t have a long history of success. It’s important to temper expectations with unproven stocks. That said, investors should keep Reddit on their radar; this could become a real star in the coming years.

Finally, I allocate $25,000, or 50%, of my hypothetical portfolio Amazon (NASDAQ: AMZN).

Simply put, I want at least half of my portfolio invested in a known winner — aAnd without a doubt, Amazon is a winning stock.

Since its debut, Amazon shares have grown 200,000%. On a compound annual growth rate (CAGR) basis, they have returned about 32% per year for nearly three decades.

Put another way, a $10,000 investment in Amazon in 1997 would be worth $20 million today.

Admittedly, it’s not reasonable to expect that level of growth from Amazon stock in the future. However, that doesn’t mean Amazon is ready to grow — Far of it.

In the company’s most recent quarter (the three months ending September 30, 2024), Amazon reported revenue growth of 11%, bringing quarterly revenue to $159 billion.

Moreover, under the leadership of CEO Andy Jassy, ​​the company’s net profit and free cash flow have soared to record highs. Amazon’s timely investments in its fulfillment network are partly responsible for the higher profits, along with the company’s growing advertising business.

All in all, Amazon has many of the aspects I look for in a large portfolio. It has solid growth, excellent profitability, ample free cash flow and great leadership.

In short, it’s the perfect stock to anchor my hypothetical portfolio for many years to come.

Have you ever felt like you missed the boat on buying the most successful stocks? Then you would like to hear this.

On rare occasions, our expert team of analysts provides a “Double Down” Stocks recommendation for companies they think are about to pop. If you’re worried that you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: If you had invested $1,000 when we doubled in 2010, you would have $23,818!*

• Apple: If you had invested $1,000 when we doubled in 2008, you would have $43,221!*

• Netflix: If you had invested $1,000 when we doubled in 2004, you would have $451,527!*

We’re currently issuing ‘Double Down’ warnings for three incredible companies, and another opportunity like this may not happen anytime soon.

See 3 “Double Down” Stocks »

*Stock Advisor returns November 11, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Jake Lerch has positions at Amazon and Reddit. The Motley Fool holds positions in and recommends Amazon, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.

The Best Stocks to Invest $50,000 In Now was originally published by The Motley Fool