Key Points

• Based on the stock’s performance in the past few days, the market was disappointed with Amazon’s latest financial update.

• The company’s overall revenue growth accelerated from Q1, and management plans to spend more on capital expenditures this year.

• Investors can take advantage of the latest dip to add a top business to their portfolios.

• These 10 stocks could mint the next wave of millionaires ›

Amazon (NASDAQ: AMZN) just reported financial results for the three-month period that ended June 30 (second-quarter 2025). Judging by the fact that the share price was down nearly 10% (as of Aug. 4) from the day of the announcement on July 31, the market clearly hasn't been happy with the update that management provided.

Revenue totaled $167.7 billion, with diluted earnings per share coming in at $1.68. These two headline figures were ahead of Wall Street's expectations. It wasn't even close. However, the leadership team's guidance was for operating income to be $18 billion (at the midpoint) for the third quarter, well below analysts' $19.5 billion forecast.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

It's important that investors are keeping up with Amazon's most recent financial performance. But these things should be viewed with the bigger picture in mind. Is this "Magnificent Seven" stock a smart long-term buy?

Image source: Getty Images.

Growth is picking up

During Q2, Amazon's top line grew at a 13.3% year-over-year rate. This was an acceleration compared to the first quarter, which is obviously an encouraging sign. What's remarkable is that the business is expanding at a strong clip, despite collecting a massive $670 billion in net sales in the last 12 months. Even at its current size, growth is still a part of the Amazon story.

The North America segment posted an 11% revenue gain. This was the fastest expansion rate since Q1 2024. The company had its biggest Prime Day ever. It also expanded same-day and next-day delivery in the U.S.

Amazon's digital advertising segment deserves some attention. Revenue soared 22% to $15.7 billion. This is becoming a more important money-maker for the company. Amazon is behind only Meta Platforms and Alphabet when it comes to digital ad sales.

Investors who believed that Amazon's growth engine was slowing got a pleasant surprise. Perhaps the business still has many years left of double-digit revenue gains as we look ahead.

Is AWS losing its luster?

The most exciting part of Amazon has nothing to do with online shopping or digital advertising. Instead, it's Amazon Web Services (AWS), the cloud computing platform with industry-leading market share, that investors seem to focus on the most. The latest financial update might have given shareholders a reason to be cautious.

AWS registered 17.5% year-over-year revenue growth to $30.9 billion. That number was slightly ahead of analyst estimates. However, it's worth pointing out that the two biggest rivals, Microsoft Azure and Alphabet's Google Cloud, are both growing at much faster rates. This means that AWS is losing market share.

What's more, AWS' operating income increased by just 9.7%, lower than the revenue gain, as expenses crept up. But CEO Andy Jassy remains very confident on the opportunity AWS has.

"I say this frequently, but remember that 85 to 90% of worldwide IT spend is still on premises versus in the cloud," he pointed out on the Q2 2025 earnings call.

There will also continue to be robust demand from customers looking to use the expanding set of artificial intelligence (AI) tools.

For what it's worth, investors must get comfortable with the amount of spending happening, as Amazon could undertake almost $120 billion in capital expenditures just this year. If the business didn't do this, then it would risk falling behind in the AI race.

Buy the dip

As of Aug. 4, shares of Amazon trade 13% below their peak from February. I view this dip as a smart buying opportunity. Investors have the chance right now to add one of the world's top companies to their portfolios at a time when the market is pessimistic about the latest financial results. Over the long term, this business will remain a dominant tech leader, even though the numbers each quarter could vary substantially. I still think patient investors should be rewarded.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,026%* — a market-crushing outperformance compared to 180% for the S&P 500.

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*Stock Advisor returns as of August 4, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Key Points

• Netflix is opening Netflix Houses in select U.S. cities, which will bring its popular shows and movies to life.

• Disney is second-to-none when it comes to physical experiences, a segment that rakes in substantial profits.

• Netflix dominates the current media landscape, so a major shift in strategy isn’t necessary.

• 10 stocks we like better than Netflix ›

In the past decade, Netflix (NASDAQ: NFLX) shares have soared 955%. Just this year (as of July 23), they are up 32%. With this type of stellar performance, it seems the business can do no wrong.

However, there is one area Netflix has yet to tap: Theme parks. The company has become a dominant media and entertainment enterprise, but it's presence in the physical world is nonexistent.

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This puts Netflix behind a peer like Walt Disney (NYSE: DIS), which owns and operates seven of the 10 most visited theme parks on the face of the planet. Not to mention the cruise ships that Disney also has. Maybe Netflix is staring at an obvious opportunity here to grow its revenue and fan base.

Should the top streaming stock become more like the House of Mouse? Here's how investors should view this situation from a strategic and financial perspective.

Image source: Getty Images.

Creating a flywheel

Disney has unmatched intellectual property (IP), which helps support its flywheel. People might watch a new Marvel movie or series and immediately want to experience these characters in real life, so they visit Walt Disney World to ride the Guardians of the Galaxy: Cosmic Rewind roller coaster. They might also buy merchandise. It's a situation where all the pieces fortify Disney's competitive position, allowing it to develop deeper and longer-lasting connections with its fans.

Creating physical experiences can help Netflix bolster its brand in the same way. For what it's worth, the company plans to launch Netflix Houses in Dallas and Philadelphia this year, and in Las Vegas in 2027. These are permanent, but small-format (about 100,000 square feet) setups located in shopping malls. There are interactive experiences, dining options, and retail stores.

It's encouraging to see Netflix test the waters when it comes to physical experiences. It might not have the breadth and depth of IP that Disney has, especially when it comes to content for kids and families, but it has extremely popular shows and movies that people love. It's probably best that Netflix isn't going full steam ahead with building an actual theme park, as it likely won't be able to compete with Disney's dominance, or with Comcast's Universal Studios.

Financial implications

When making these kinds of strategic decisions, what matters most is the potential they can have for financial success. Disney's Experiences segment is its most profitable. In fiscal 2024 (ended Sept. 28, 2024), this division raked in $9.3 billion in operating income on $34.2 billion in revenue.

Netflix reported $6.9 billion in free cash flow in 2024, with a forecast to bring in between $8 billion and $8.5 billion this year. Investing in building out theme parks would require huge capital expenditure commitments that would certainly dent Netflix's strong financial position. Return on invested capital is a key metric that management teams should think about when allocating cash to its best use. Developing physical experiences at Disney's level would take resources away from creating top-notch content that the company is known for.

In September 2023, Disney announced that it was going to spend $60 billion over the next decade to expand its Experiences segment. That's a massive undertaking that Netflix can avoid.

Netflix is doing just fine

The media industry, which is now being driven by the streaming model, is extremely competitive. There are many businesses vying for viewer attention, so it's always important to figure out ways of standing out. But Netflix reigns supreme, with more than 300 million subscribers worldwide. It's operating from a position of strength with the upcoming launch of Netflix Houses.

Netflix doesn't need to be more like Disney. The former continues to fire on all cylinders. The opposite argument holds more weight, with Disney needing to be more like Netflix -- at least when it comes to the House of Mouse's streaming segment that just became profitable not too long ago.

Should you invest $1,000 in Netflix right now?

Before you buy stock in Netflix, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*

Now, it’s worth noting Stock Advisor’s total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 21, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.

Key Points

• As this is Berkshire’s second-biggest position, Buffett has certainly found some traits he appreciates.

• This premium credit card brand boasts superb charge-off rates that are the envy of the industry.

• Shares of American Express have performed exceptionally well in recent years, creating valuation risk.

• 10 stocks we like better than American Express ›

There are dozens of companies in Berkshire Hathaway's public equities portfolio. A lot of attention might go to Apple or Coca-Cola. However, investors need to pay attention to another business that's at the top of the list.

Warren Buffett-led conglomerate Berkshire Hathaway owns 21.6% of the outstanding shares of this well-known financial services company. This stock has climbed a phenomenal 217% just in the past five years (as of July 23).

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But is it a no-brainer buying opportunity today?

Image source: Getty Images.

Holding a strong position in the credit card industry

The company that Berkshire has such a huge stake in is American Express (NYSE: AXP). The top Buffett stock's underlying business certainly possesses some very favorable characteristics.

For starters, Amex has a wide economic moat. This is something the Oracle of Omaha appreciates. It indicates a company's ability to defend itself against competitive forces, supporting its durability.

The American Express brand is a key asset for the business. Some of the company's credit cards are at the premium end of the market, holding a special status among consumers. Offering impressive rewards and perks while charging hefty annual fees attracts people with higher incomes.

American Express also benefits from a powerful network effect, which is true for other card and payment platforms. As the number of merchant acceptance locations grows, so does the utility for cardholders. And with more cardholders, merchants find more value because there are more opportunities to generate sales.

Another favorable trait is just how steady American Express' financial performance is. The economic backdrop recently hasn't been the smoothest, with concerns about tariffs making investors and executives jittery. But Amex continues to shine. During the second quarter, the financial giant reported a 9% year-over-year increase in revenue. This was driven by a 7% bump in spending.

For all the talk about macroeconomic weakness leading to a possible recession, Amex is giving investors every reason to remain optimistic. The percentage of card members loans that are 30 days or more past due is significantly below the industry average. Net write-off rates also declined sequentially and compared to the second quarter of 2024.

The company is extremely profitable, something Buffett likes. American Express generated $2.9 billion in net income in the second quarter. The leadership team uses the excess cash to buy back shares and pay a dividend. These are certainly investor-friendly capital allocation practices.

Why investors should tread with caution

Shares of Amex have been a huge market outperformer in recent years. As a result of this strong performance, the stock isn't cheap. The market is asking investors to pay a price-to-earnings (P/E) ratio of 21.5 to buy the stock. That's definitely not a bargain, as it's well above the trailing-three-year average multiple. But it's also not egregiously expensive.

Investors who want to own high-quality companies for a long time should undoubtedly have American Express at least on their watch list. The business should continue to post solid revenue and earnings growth for the foreseeable future, while the brand presence and network effect help it maintain its competitive standing. These are wonderful qualities to focus on.

But it's really anyone's guess what valuation multiple the stock will trade at five or 10 years down the road. This is a critical factor to think about. If the P/E ratio expands, it can add tremendous upside. On the other hand, paying too high of a multiple up front can create a headwind, as the P/E ratio could contract over time.

At the current price, American Express is far from being a no-brainer stock to buy.

Should you invest $1,000 in American Express right now?

Before you buy stock in American Express, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*

Now, it’s worth noting Stock Advisor’s total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 21, 2025

American Express is an advertising partner of Motley Fool Money. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.

Key Points

• Visa is a high-quality business whose shares rarely go on sale, but that might not discourage investors from owning the stock.

• The company’s competitive position is supported by the presence of a powerful network effect.

• Stablecoins have an uphill battle to put a dent in Visa’s business model.

• 10 stocks we like better than Visa ›

Visa (NYSE: V) is a dominant force in the financial services industry. It runs a leading payments platform that connects consumers, banks, and merchants across the globe. The business even finds itself in Warren Buffett-led Berkshire Hathaway's portfolio.

This financial stock trades close to all-time highs, and a valid argument can be made that the current valuation isn't cheap. But this is an outstanding company that still deserves a closer look.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Here's one reason investors should buy Visa.

Image source: Visa.

Visa's unassailable competitive position

In fiscal 2024, Visa processed 233.8 billion transactions valued at a whopping $15.7 trillion. It currently has 4.8 billion active cards that are accepted at 150 million merchants around the world. That scale is unmatched, and it demonstrates just how formidable Visa's competitive position is, which is a key reason to scoop up shares.

The business benefits from an extremely powerful network effect. As the number of merchants that accept Visa grows, it's more valuable to have a Visa card. The opposite is also true, with more cardholders creating more sales opportunities for merchants.

The threat of stablecoins

With the passing of the Genius Act, investors might start to worry about the threat that stablecoins pose to Visa's business model. As things stand today, there's no reason to be concerned. While merchants will test the waters in an effort to cut payment processing costs, the real question of whether or not consumers will make the jump.

Favorable legislation passing doesn't necessarily mean there will be mass adoption of stablecoins. People love their credit cards and the perks and rewards they offer. And a company like Visa is so ingrained in our economy, with the network effect already mentioned, as well as its deep relationships with banks and other players in the financial services industry, that it's a monumental task to disrupt it.

Visa should continue to dominate the payments landscape for the foreseeable future.

Should you invest $1,000 in Visa right now?

Before you buy stock in Visa, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Visa wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*

Now, it’s worth noting Stock Advisor’s total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 21, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Visa. The Motley Fool has a disclosure policy.

Key Points

• This ETF tracks the performance of the S&P 500, which more than tripled investor capital over the last decade.

• Investors who buy this ETF don't need to spend time trying to successfully research and pick stocks.

• Even at record highs, it's a smart idea for investors to consider putting money to work in the stock market.

• 10 stocks we like better than Vanguard S&P 500 ETF ›

All investors want to find winning stocks to put money behind, similarly to the best professionals out there. Who doesn't want to allocate capital like billionaires Warren Buffett or Bill Ackman?

But for the majority of people, taking a more passive approach makes the most sense. This is easier than ever, thanks to the ample number of exchange-traded funds (ETFs). In fact, Vanguard, the massive asset management firm, has what I believe is a no-brainer option.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Here's one ETF to invest $1,000 in this July.

Image source: Getty Images.

Tracking the S&P 500

As the name suggests, the Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the performance of the S&P 500 (SNPINDEX: ^GSPC). This benchmark, which is the most closely watched barometer of the stock market's performance, contains 500 large and profitable U.S. businesses. It's how many professional money managers assess their own performance over time.

By buying the Vanguard S&P 500 ETF, investors are betting on the continued ingenuity that has characterized the American economy. This has historically been a very lucrative perspective to have.

The Vanguard S&P 500 ETF gives investors immediate diversification, with exposure to all sectors of the economy. But unsurprisingly, there is a high weighting toward the biggest companies in the market. The top five positions in this ETF are Nvidia, Microsoft, Apple, Amazon, and Meta Platforms, which combined take up 27.2% of the asset base.

Impressive performance at a low cost

The Vanguard S&P 500 ETF's performance is hard to overlook. In the past decade, it has produced a total return of 254% (as of July 15). A $1,000 investment would've grown into $3,540 during that time. That's a wonderful result that shows the power of compounding.

These past gains have been propelled by some key factors. Interest rates have generally been low, which spurs economic activity, as well as helps to grow companies' earnings power. Passive investment vehicles continue to attract a lot of capital, bringing more demand into the stock market. And we've witnessed the rise of powerful tech enterprises that are arguably the best businesses the world has ever seen.

Investors also benefit by buying the Vanguard S&P 500 ETF because they don't need to spend time poring over financial statements or listening to earnings calls. It's cheap, with an expense ratio of just 0.03%, and a hassle-free method to start growing your savings.

Time in the market matters

The S&P 500 has had a choppy year. As of July 15, however, the index is trading in record territory. Investors were concerned about a possible recession amid ongoing trade uncertainty, but the market is now looking much more confident.

Many investors are probably wondering why July is a good month to add the Vanguard S&P 500 ETF to their portfolios. After all, wouldn't it be smarter to simply wait for a pullback before putting money to work? Buy low and sell high, as they say.

While timing the market seems like the right move, it's extremely difficult to execute successfully. Investors could cause more harm to their portfolios, trading in and out of positions at the wrong time and missing the market's best days.

The best thing to do is invest early and often. This is especially true for investors who have a time horizon that spans decades. Even buying at all-time highs won't matter that far into the future. Focus on having the discipline to invest $1,000 in the Vanguard S&P 500 ETF in July. And be ready for the volatility along the way, which is normal.

Should you invest $1,000 in Vanguard S&P 500 ETF right now?

Before you buy stock in Vanguard S&P 500 ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Neil Patel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Key Points

• Warren Buffett has an unrivaled track record allocating capital, but maybe the best dollar gain occurred with a decision made just in the past decade.

• This business, which remains Berkshire's top holding, has numerous traits showcasing its high quality.

• Investors shouldn't blindly follow Buffett.

• 10 stocks we like better than Apple ›

Since 1965, Berkshire Hathaway has compounded shareholder capital at a nearly 20% annualized rate. That unbelievable performance was under the stewardship of Warren Buffett, arguably the best investor ever.

The Oracle of Omaha's most lucrative idea might have happened in the past decade, though. Shares of this consumer-facing enterprise have soared 749% in the last nine years (as of July 15), producing a huge dollar gain for Berkshire. Despite numerous stock sales over a four-quarter stretch from the fourth quarter of 2023 through the third quarter of 2024, this company still represents 22% of the conglomerate's $290 billion portfolio, making it the biggest position.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

This is a wonderful business, but should investors buy the stock?

Image source: The Motley Fool.

Passing Buffett's filter is a valuable endorsement

During the first quarter of 2016, Buffett and Berkshire initiated a position in Apple (NASDAQ: AAPL). Based on the percentage return mentioned above, this turned out to be an investing masterstroke. Looking back at the decision, investors can gain valuable insights as to how Apple passed Buffett's filter.

Berkshire's portfolio is full of businesses that possess strong brands. There might be none more powerful than Apple, which has a global customer base that's loyal to the company's products and services, constantly waiting for what will be launched next. Apple positions itself at the premium end of the consumer electronics industry, but its intense focus on innovation has won over consumers.

This also allows for pricing power, a trait that Buffett loves. Apple's share of the smartphone industry's profits is significantly higher than its share of unit sales, which reveals the financial success of the iPhone.

Buffett likes to own companies in pristine financial shape. Apple generates copious amounts of free cash flow each quarter. And in the past five years, the operating margin has averaged a breathtaking 30%.

Of course, a great company doesn't always make for a worthwhile investment opportunity. Here's where valuation comes into focus. During the first quarter of 2016, Apple shares traded at an average price-to-earnings (P/E) ratio of 10.6. Viewing this multiple with the company's brand, pricing power, and profits, buying Apple more than nine years ago looks like a no-brainer decision for Buffett with the benefit of hindsight.

Is Apple stock a buy now?

As of March 31, Berkshire Hathaway owned 300 million Apple shares. If Buffett and his team weren't still bullish on Apple, then they wouldn't have such a huge position in the stock. But should individual investors buy shares now?

To come to an informed answer requires a fresh perspective. Some of the favorable traits still hold true, like the powerful brand and the monster profits.

However, there's reason to believe that this "Magnificent Seven" stock will struggle to outperform the market over the next five or 10 years. Apple's growth is nothing to write home about. The analyst community sees revenue increasing at a compound annual rate of 5.3% between fiscal 2024 and fiscal 2027.

Apple's lack of progress with artificial intelligence (AI) initiatives also continues to receive criticism. Updates to the Siri voice assistant that integrate AI aren't coming until next year. And Apple has relied on partnerships to bring AI capabilities to its operating system. At the end of the day, these aren't driving meaningful growth.

Investors also certainly won't be pleased with the fact that the stock currently trades at a P/E ratio of 32.9. At a valuation three times what Buffett first paid, Apple stock isn't a buy right now.

Should you invest $1,000 in Apple right now?

Before you buy stock in Apple, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.

Key Points

• Despite extreme levels of volatility, Shiba Inu’s price has rocketed higher since its launch in 2020.

• The token’s price is driven by short-lived hype cycles, which are impossible to predict.

• If Shiba Inu gets to $1 at the current token supply, the numbers are hard to wrap your head around.

• 10 stocks we like better than Shiba Inu ›

The entire cryptocurrency market is worth $3.8 trillion, as of this writing on the morning of July 16. Despite that scale, critics rightfully view the industry with a bit of skepticism. Several crypto scams still exist, and crypto's utility is questioned by many.

However, some tokens have emerged as huge winners for risk-seeking investors, thanks to their ability to draw a large community of supporters. This is exactly what Shiba Inu (CRYPTO: SHIB) has done. It's trading 84% below its peak but has still skyrocketed since its launch in 2020.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Maybe the momentum will continue through the rest of this decade. Can Shiba Inu reach $1 per token in 2030?

Image source: Getty Images.

Hype and speculation

Shiba Inu's historical price chart resembles a roller-coaster ride because there have been short periods of massive price upswings. This happened in late 2021, when Shiba Inu's price hit a record in October that year during a raging bull market. It also occurred twice in 2024, but the price tanked in the months that followed as the demand wasn't sustainable.

This tells me that the token's price is influenced by short-term hype cycles. Those who can correctly time these, buying and selling at the right moments, will see big gains. But that's impossible to do consistently without a tremendous amount of luck.

Shiba Inu's path to $1

Shiba Inu's token currently trades at $0.0000139. For the price to reach $1 in five years, it would need to rise 72,000-fold. This translates to a monster compound annual growth rate of 836%. In comparison, Bitcoin, the world's most valuable digital asset, has seen its price increase at a yearly clip of 67% in the past five years.

There are 590 trillion Shiba Inu tokens in circulation. Keeping the supply constant, this implies an illogical $590 trillion market cap at the end of the decade.

The U.S. economy, which is the largest in the world, reported an annualized gross domestic product (GDP) of $30 trillion in Q1 2025. Nvidia, the most valuable company on Earth and the champion of the artificial intelligence (AI) race, has a market cap of over $4 trillion. It's not realistic for Shiba Inu to reach $1 per token at the current supply.

However, the network is trying to improve the situation. Shiba Inu is in the process of burning coins. This could introduce an element of scarcity that might drive interest.

The current pace of this activity won't put a meaningful dent in the supply, as only 180,000 coins were burned in the past 24 hours. Even if the token supply were reduced significantly to help the price grow, the entire network wouldn't necessarily be worth more. Holders would simply have fewer tokens that have a higher nominal price.

Hanging on

The fact that Shiba Inu trades 84% below its peak indicates the market's waning interest. Yes, there will likely be random occurrences when the price spikes, only to come crashing back down. Unless there are real-world use cases that support broad user and developer adoption, I think Shiba Inu will likely just hang on and survive in the years ahead.

The supporters will point to things like the layer-2 Shibarium that's meant to lower fees and speed transaction times. There's also ShibaSwap, a decentralized exchange, and a metaverse. However, I don't see any value here.

Making things more difficult is the competition Shiba Inu faces. There are so many tokens out there that speculators can play with and some are surely more volatile. For those true investors seeking a safer long-term opportunity in the crypto space, nothing beats Bitcoin.

Should you invest $1,000 in Shiba Inu right now?

Before you buy stock in Shiba Inu, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Shiba Inu wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of July 15, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Nvidia. The Motley Fool has a disclosure policy.

Key Points

• Bitcoin's price has skyrocketed, as it becomes a legitimate financial asset viewed favorably by large institutions and governments.

• Bitcoin's fixed supply cap of 21 million units is what makes it special.

• If Bitcoin simply gets to gold's market cap in a decade, it will reach $1 million.

• 10 stocks we like better than Bitcoin ›

When viewed as a separate asset, Bitcoin (CRYPTO: BTC) is hands down the best-performing one in the past decade. As of July 7, its price had skyrocketed 40,550% since the same date in 2015. That gain is significantly higher than what the stock market, U.S. Treasuries, or gold did during the same time.

Although the returns of the past surely won't repeat, I believe the good times will continue. I predict that this leading cryptocurrency will be worth $1 million per coin in 10 years.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

See the present clearly

Bitcoin has come a long way. What was once a funny internet money that sparked interest among cypherpunks has now become a global financial asset. Bitcoin can now be taken seriously, with its market cap of almost $2.2 trillion.

One key risk, which is that governments would get involved and ban Bitcoin, is now fading into irrelevance. The U.S. government plans to create a Strategic Bitcoin Reserve, while the Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs) last year. These are signs pointing to Bitcoin not going away anytime soon.

Companies are starting to invest in and hold Bitcoin directly on their own balance sheets. Financial institutions can hold Bitcoin in custody on behalf of clients without the requirement to hold extra risk capital against it. And it was also just announced that Bitcoin would be recognized as collateral for mortgages.

It's impressive seeing Bitcoin's rise from a grassroots movement driven by individuals to a global asset that's embraced by big and powerful institutions. It's best not overthink this. The historical trend points to Bitcoin's rise continuing for the foreseeable future.

Scarcity drives demand

Bitcoin's price has soared during the past decade because the world is starting to understand how valuable it is to own a scarce asset. Bitcoin has a fixed supply cap of 21 million coins, enforced by a halving cycle that occurs roughly every four years. The last one happened in April 2024, with the next halving expected in April 2028.

Governments, especially the U.S., continue to run huge fiscal deficits. At the same time, the money supply keeps expanding at a rapid pace. This backdrop of growing liquidity in the financial system results in constantly debased fiat currency. However, it also leads to a risk asset like Bitcoin benefiting as more money seeks higher returns.

The Trump administration just passed the "big, beautiful bill," which will extend tax cuts, reduce Medicare and food benefits, and increase defense spending. According to the Congressional Budget Office, this will increase the fiscal deficit by $3.3 trillion during the next decade. It doesn't matter what politicians say about balancing the budget. Debt and spending will continue to be the main macro theme, which plays to Bitcoin's benefit as a fixed-supply asset.

Getting to $1 million

Bitcoin's present situation shows that it has cemented itself as a legitimate financial asset. Its scarcity, with a hard supply cap of 21 million units, stands impressively against fiat currency debasement.

This favorable setup gives me confidence that Bitcoin's price will rise roughly 900% to reach $1 million in 10 years. Gold is often compared to Bitcoin because they are both neutral, global, and scarce assets. The precious metal has a market value of $22.2 trillion, about 10 times higher than Bitcoin. It's not a stretch to expect the crypto to match gold's value in 2035.

It's worth highlighting that Bitcoin has much better qualities than gold. Bitcoin is portable, divisible, and verifiable. And it can be used in transactions. Plus, Bitcoin looks likely to be a key financial instrument in a world that is only becoming increasingly digital.

Therefore, maybe a $1 million price target will prove to be conservative in the grand scheme of things, as Bitcoin should eventually be worth much more than gold.

Should you invest $1,000 in Bitcoin right now?

Before you buy stock in Bitcoin, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $687,764!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $980,723!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 7, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

Key Points

• Coca-Cola's powerful brand stems not only from effective marketing, but from the business delivering a consistent product over time.

• The company’s incredible profitability supports a dividend that has increased for 63 straight years.

• Investors should not expect Coca-Cola shares to provide strong capital appreciation.

Coca-Cola (NYSE: KO) is a business that everyone is familiar with. It has 200 different drink products that are sold in 200 countries and territories across the globe. There are 2.2 billion servings consumed each day. And perhaps something most investors appreciate is the fact that Warren Buffett-led Berkshire Hathaway owns 400 million shares.

This is a dominant business in its industry. But could a $10,000 investment in this top beverage stock one day make you a millionaire?

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Coca-Cola has many favorable qualities

Coca-Cola is an outstanding company. One reason why is because of its strong brand. It has offered consumers across the globe consistency with its product quality while also leaning on its marketing prowess to connect on a deeper level. The brand makes up Coca-Cola's economic moat.

The brand presence also supports pricing power. In the latest quarter (Q1 2025 ended March 28), Coca-Cola benefited from a 5% increase in prices. This is a usual occurrence. The management team understands how well the brand resonates with customers, who won't necessarily switch to products that competitors sell.

Investors can also view Coca-Cola as a business that is resilient to recessionary pressures. That's because its beverages are small, repeat purchases that consumers have formed habits around. I don't believe that in tough economic times, people will immediately cut down their spending on Coca-Cola products.

This trend is playing out now, at a time when investors are worried about the uncertain macro climate. The company's organic revenue rose 6% year over year in the first quarter, with unit volume growing 2%. This might explain why the stock is up 15% in 2025 (as of July 3), well ahead of the S&P 500 Index.

Because Coca-Cola outsources bottling and distribution activities to third-party partners, it's able to create a more efficient organization. The result is huge profits for Coca-Cola. The business reported $3.7 billion in operating income in Q1. That was good for a superb 32.9% operating margin.

In my view, there are minimal threats of Coca-Cola ever being disrupted. The fact that the business has been around for well over 100 years is a clear sign of its durability. Unlike tech-driven industries that attract very smart entrepreneurs and a lot of capital, the beverage market goes at a slower and more boring pace. Investors can have confidence that Coca-Cola will still be relevant several decades from now.

This beverage stock is only for a certain kind of investor

As mentioned, there are many attractive traits of this company. In particular, Coca-Cola's profitability is incredible. And there is no reason to believe this performance will change anytime soon.

That benefits shareholders directly, as Coca-Cola is a Dividend King. It has raised its payout in 63 straight years, which is an unbelievable feat. It's a clear indication of just how great of a business this is and how long it has been successful.

This points to what I believe is the correct way to view this stock, which is that it's only for investors seeking steady and consistent income from the companies that they own. The current dividend yield of 2.81% can provide a nice income stream for certain portfolios.

However, this stock isn't going to give you much in the way of strong capital appreciation. Its growth isn't anything to write home about, as Coca-Cola is an extremely mature business. In the past 10 years, the stock has generated a total return of 146%. That performance comes in substantially below the broader S&P 500 Index.

Investing $10,000 in Coca-Cola shares won't make you a millionaire, a perspective that I'm confident in.

Should you invest $1,000 in Coca-Cola right now?

Before you buy stock in Coca-Cola, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $976,677!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

SoFi Technologies (NASDAQ: SOFI) hasn't been an easy stock to own, with the price bouncing up and down. Case in point: Its 52-week high is 206% above its 52-week low. However, shares have soared 154% in the past 12 months (as of June 26). The market is warming up to this digital banking leader.

This fintech stock is extremely volatile, which might continue to be the case. But shares still trade well below $20. Should investors add SoFi to their portfolios at these levels?

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

SoFi continues to innovate

SoFi has found tremendous success by focusing on providing a superior user experience to its customer base. This means leveraging data, technology, and the internet to make it extremely easy to manage one's finances. It helps that the business isn't bogged down by outdated infrastructure or physical bank branches. This makes it easy to put the customer first.

With that in mind, SoFi has prioritized constantly innovating. For instance, in March 2023, the company introduced FDIC insurance on up to $2 million in deposits by partnering with other financial institutions. This is eight times the standard $250,000 that's typically insured. SoFi's deposit base soared from $1.2 billion at the end of the first quarter of 2022 to $27.3 billion now, a phenomenal growth rate.

Recently, SoFi announced plans to tap the global remittance market. Later this year, customers will be able to use Zelle, ACH, stablecoins, or other methods to send money across borders. The business says that funds will be transferred via blockchain networks, and that the process will be cheaper and faster than the traditional systems widely used today.

After shutting down the service in December 2023 to comply with regulations, SoFi is reintroducing cryptocurrency trading on its platform. And there are plans to seriously expand the offerings down the road.

"Over time, SoFi intends to offer stablecoins and a wide range of other services, such as providing members the ability to borrow against their crypto assets, expanding payment options, and introducing new staking features, as well as blockchain and digital asset infrastructure capabilities for other companies offered by Galileo, SoFi's technology platform," the press release reads.

These planned initiatives should keep the growth engine rumbling. SoFi has a history of strong customer and revenue gains. I see no reason why that won't continue in the years ahead.

SoFi is poised to be a huge winner

This stock has crushed the market in the past year, as momentum remains hot for SoFi among investors. But for those who have been on the sidelines, don't let that outperformance discourage you. I don't believe investors have missed the boat.

Executives think the bottom line is on an impressive upward trajectory. SoFi reported a $0.10 adjusted earnings per share (EPS) loss in 2023, a major improvement from the year before. But by 2026, the leadership team predicts positive $0.68 (at the midpoint). In the years after that, the forecast is for annualized growth of between 20% and 25%. The combination of rapid revenue gains and a scalable business model makes it easy to be bullish.

SoFi has exceeded Wall Street's EPS expectations in the last 11 straight quarters. Clearly, management has a history of under-promising and over-delivering. This gives me confidence that the company will hit its long-term profit targets, and maybe even surprise to the upside.

As of June 26, the stock trades at a P/E ratio of 39.8. On the surface, this obviously doesn't look like a bargain deal. After all, the S&P 500 index is about 40% cheaper. However, if you believe, like I do, that profits will increase substantially in the years ahead, then SoFi looks like a no-brainer buy below $20 per share.

Should you invest $1,000 in SoFi Technologies right now?

Before you buy stock in SoFi Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Looking back at its history as a public company, Tesla (NASDAQ: TSLA) has generated serious wealth for investors. The auto industry disruptor has seen its shares skyrocket 20,290% since its initial public offering in June 2010 (as of June 25). Had you invested just $5,000 back then, there would be a $1 million balance in your portfolio right now.

No one would argue with that kind of impressive past gain. But will the leading EV stock be a millionaire maker in the future?

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Image source: Tesla.

Assessing Tesla's true valuation

Tesla might be the most closely watched business in the world, partly, because of how it disrupted the global car market. Investors also keep tabs on what CEO Elon Musk is doing, as well as his plans for the company (more on this below).

However, investors shouldn't lose sight of what Tesla really is today, which is a challenged company that sells innovative and tech-enhanced EVs. In the first quarter, the business reported $14 billion of automotive revenue, 72% of the total. Total revenue was up just 0.9% in 2024, then it declined 9.2% in Q1 2025.

Operating income in the first quarter tanked 66%, thanks to lower average selling prices, fewer deliveries, and higher expenses.

To be fair, this is an extremely inventive company that's working at the cutting edge of exciting technologies. But someone viewing Tesla with a clear lens would see that this is a struggling business. Its core operations are under pressure, without a doubt.

What valuation should Tesla trade at knowing the reality of the business today? Even with a more reasonable price-to-earnings ratio (P/E) of 50 (compared to its current P/E ratio of 179), which is what luxury automaker Ferrari trades for, the stock has 72% downside. That certainly doesn't give investors any reason to be bullish.

The Musk premium

Based on the current market cap of $1 trillion and P/E ratio of 179, Tesla is wildly overvalued. But the story stock has seemingly always traded at a steep valuation, as investors continue to bet on a future that sees the company realizing its potential as a dominant force in autonomous driving and robotics.

The company has finally launched a robotaxi service in Austin, Texas. This was highly anticipated and something that Musk has talked about for years. However, I think it turned out to be a big nothing burger.

There were no Cybercabs. Less than two dozen Model Ys were used instead. There were human supervisors in all the vehicles. And videos of the robotaxis in action showed numerous issues, spurring an investigation by the National Highway Traffic Safety Administration.

At the same time, Alphabet's Waymo is handling 250,000 trips per week in multiple cities. And an application is in place to start testing the service in New York City. Tesla appears to still have a long way to go.

The company is also leveraging its AI capabilities to work on Optimus, a humanoid robot. Musk believes it will produce 1 million units annually by the end of this decade. Besides placing these machines in its factories, the goal is to sell them to other companies.

If all goes according to plan, which is a very uncertain outcome, then Tesla could make its investors into millionaires down the road. The end markets for robotaxis and humanoid robots are estimated to be measured in the trillions of dollars. The company's ability to not only have these technologies achieve mass adoption, but to also capture a sizable chunk of the opportunity, could create a financial windfall.

However, I think there's also a good chance that the business won't deliver up to its heightened expectations, a perspective that's supported by a history of constant delays. This is a stock that I'm still avoiding.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried 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:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $409,114!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $38,173!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $713,547!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

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*Stock Advisor returns as of June 23, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Tesla. The Motley Fool has a disclosure policy.

SoFi Technologies (NASDAQ: SOFI) has been a major winner in the past 12 months. Shares are up just over 100% since early June 2024, highlighting how the business is winning over investors in remarkable fashion. But to be fair, it has been a volatile stretch.

This leading digital bank hardly flies under the radar anymore. It's doing a great job bringing on new customers, especially as it continues innovating with new products. Shares currently trade 45% below their peak, though.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Investors should consider what the future might hold. Where will this top fintech stock be in five years?

Image source: SoFi Technologies.

Becoming a top 10 financial institution

CEO Anthony Noto, who has an impressive background working for the National Football League, Goldman Sachs, and Twitter (now X), has high hopes for his company. "Meeting all of a person's financial needs in one place with world-class products delivered seamlessly and digitally gives us a massive advantage," he said on the 2024 third-quarter earnings call last October. "This is why you will often hear me say it's a matter of when, not if, we become a top 10 financial institution."

It's not exactly clear what metric Noto is focused on with this goal. It could be market cap, revenue, or assets, for example. Nonetheless, it's strikingly clear that SoFi still has a long way to go.

According to Federal Reserve data, the 10th largest bank in the U.S. by assets is State Street. As of March 31, it had $368 billion in total assets on its balance sheet, more than 10 times bigger than SoFi.

It's part of every CEO's job to drive investor excitement. But from Noto's perspective, it's easy to be optimistic about what SoFi could look like in the future. That's because growth has been superb.

The business added 800,000 net new customers last quarter, with the total count approaching 11 million. And SoFi's first-quarter adjusted net revenue of $771 million was more than it brought in for all of 2020.

I'm confident that by 2030, SoFi will be a much larger financial services entity. It should have more customers, more products, higher revenue, and higher profits. Based on the company's success, it's difficult to think any other way.

However, there could still be some risks that affect SoFi's success over the next five years. For one, the culture of product innovation could weaken and pressure customer growth.

What's more, management could loosen up lending standards and its risk management in the name of faster expansion. So far, though, there's nothing concerning, but investors should be mindful of risk factors.

SoFi stock in 2030

As of this writing, this stock trades at a price-to-earnings ratio (P/E) of 34.9. This appears to be an expensive valuation, but there's more to it than meets the eye.

Management believes that profits will soar. It's expected that in 2026, earnings per share (EPS) will be $0.68 at the midpoint. And in the years after that, the company thinks EPS will grow at a compound annual rate of 20% to 25%. Based on these forecasts, EPS will total $1.25 in 2030.

Let's assume the P/E contracts to 23.4 in 2030, which is the current multiple of the S&P 500. I believe this could be a conservative view. Then, we're looking at a stock price of $29.25 at the end of the decade.

Of course, this is a rough estimate, but it shows that SoFi Technologies shares could return 105% in the next five years. No one will argue with that kind of performance.

Should you invest $1,000 in SoFi Technologies right now?

Before you buy stock in SoFi Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $875,479!*

Now, it’s worth noting Stock Advisor’s total average return is 998% — a market-crushing outperformance compared to 174% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.

When thinking of the most powerful brands on the planet, Apple and Coca-Cola might immediately come to mind. I wouldn't be surprised if Nike (NYSE: NKE) gets brought up as well.

The leader in athletic footwear and apparel has a storied history, to be sure. However, it has hit a major rough patch. The share price, which is down 39% in the past five years, reflects underlying fundamental issues with the business.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

But opportunistic investors hunting for strong returns could see a turnaround play here. Can this consumer discretionary stock double a $1,000 investment over the next five years?

Image source: Getty Images.

Nike's strategic missteps

Nike generated $11.3 billion in revenue in the third quarter of 2025 (ended Feb. 28). That figure was down 9% year over year and also 9% lower than the same period in fiscal 2023. What's more, earnings per share (EPS) tanked 30%. These financial metrics are wildly disappointing.

With the benefit of hindsight, it becomes very clear what mistakes Nike made to get to this point. The business relied too much on classic footwear franchises, which contributed to a lack of product innovation that drove a loss of customer excitement.

On the distribution front, Nike leaned heavily on going direct to the consumer, mainly in e-commerce, alienating retailing partners in the process. And this opened up shelf space to up-and-coming rivals, particularly in the important running category.

Fashion is a tough industry to crack. Companies have to work hard to cater to the constantly changing tastes that consumers have. For example, the rise of the athleisure trend was a boon for Lululemon Athletica while spawning new businesses like Alo Yoga and Vuori. It seems more recently, there is growing interest in looser-fitting clothes. Change is the only constant.

It is surprising, though, that Nike has taken such a big hit financially. After all, this company has been around for decades, leading the global sportswear market. It should have a better pulse on consumer trends than any business in the industry. But even the best can still run into problems.

It's time to focus on the brand

Nike possesses one of the world's most iconic brands. I don't believe anyone would disagree here. This brand is precisely what makes up the company's economic moat. It provides a key asset for Nike to focus on.

CEO Elliott Hill, who was brought in last year to orchestrate a successful turnaround, is focusing on the right strategic priorities. It's all about getting back to product innovation and meeting customers where they are. Nike recently started selling its products on Amazon again after taking a six-year break from the dominant online marketplace.

For what it's worth, Nike still has a leading market share in the worldwide sportswear industry. Its brand, high-visibility athlete endorsements and league partnerships, broad distribution capabilities, and marketing prowess give it the tools it needs to succeed.

Nike's path to doubling your money

Nike shares are near the cheapest they've been in the past decade, trading at a price-to-earnings (P/E) ratio of 20.9. Expectations are understandably low, but that introduces upside potential.

Investors must believe that Nike will get back on track sooner rather than later. And by this, I mean it starts to register solid revenue and EPS growth. Making real progress could take some time, but this is the formula for investment success.

I wouldn't be surprised if the stock can double in five years, turning $1,000 into $2,000 by the end of the decade. A cheap starting valuation, coupled with improving fundamentals, can drive huge share-price gains. However, I still think this remains a very risky investment opportunity as the uncertainty is high.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried 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:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $367,516!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $38,712!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $669,517!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of June 9, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Lululemon Athletica Inc., and Nike. The Motley Fool has a disclosure policy.

Amazon (NASDAQ: AMZN) has been one of the best investments anyone could've made. In the past 20 years, shares have catapulted 11,270% higher (as of June 3). A $10,000 investment would've turned into more than $1.1 million today. That's life-changing wealth.

As of this writing, this "Magnificent Seven" stock trades 15% off its peak from early February. Now might be a great time to add this dominant enterprise to your portfolio. Here's why Amazon shares still look like a long-term winner.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Amazon.

Amazon has numerous avenues for growth

Investors prefer to own companies that exhibit solid growth, thanks to the presence of a powerful secular trend. Amazon stands out above the crowd because it has multiple tailwinds working to its benefit.

We all know about the massive online marketplace, which makes Amazon a leader in the e-commerce niche of the broader retail sector. According to data from the Federal Reserve Bank of St. Louis, physical shopping in the U.S. still represents 84% of the industry, providing Amazon with a durable opportunity to capture in the decades ahead.

Amazon Prime membership is estimated to have 220 million subscribers worldwide, providing recurring and predictable revenue for the business. People can buy items with fast and free delivery, get savings on gas, and watch shows and movies. Consequently, the rising popularity of streaming entertainment should make Prime a compelling service for more people.

Advertising might fly under the radar, but that should change. In the first quarter, digital advertising contributed $13.9 billion to Amazon's revenue. That sales figure increased 19% year over year. Amazon.com counted 2.6 billion visitors in April, so there's plenty of attention that can be monetized.

Amazon also has a budding presence within healthcare. Amazon One Medical is a primary care service offering in-person and telehealth appointments to patients. There's also Amazon Pharmacy, which can deliver medications at discounted prices.

AWS has become a high-powered business

One important secular trend that hasn't been mentioned here yet is cloud computing, a market poised to register fantastic growth going forward. CEO Andy Jassy says that 85% of IT spending is still on-site, which introduces a truly massive opportunity as these companies shift to off-premises and take advantage of the cloud.

Enter Amazon Web Services (AWS), which continues to be a significant growth engine, reporting a 17% revenue gain in Q1. In the past 12 months, AWS raked in a whopping $112 billion in sales, making it the leader in the global cloud market.

It's also bolstering the bottom line. Operating income came in at $11.5 billion for AWS during Q1, translating to a remarkable operating margin of 39.5%. It has required substantial investments to get to this point, but now AWS can leverage its expense structure to generate sizable profits.

With AWS, Amazon also has a critical platform to launch various artificial intelligence (AI) tools for its customers. "Generative AI is going to reinvent virtually every customer experience we know, and enable altogether new ones about which we've only fantasized," Jassy said.

Valuation and earnings create upside

While Amazon certainly proves that it's a wonderful company, it's important for investors to look at the stock's valuation as well. If you pay too much, no matter how great a business it is, returns going forward can disappoint.

Amazon shares trade at a forward price-to-earnings (P/E) ratio of 33.3. On the surface, this doesn't exactly look like a bargain. However, when you realize that net income soared 77% between 2021 and 2024, and that the analyst community sees earnings per share rising 62% from 2024 to 2027, it's easy to be bullish.

Amazon has been a fantastic stock to own in the past, and it can still be a long-term winner in the future.

Should you invest $1,000 in Amazon right now?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

Although the market has been bouncing back in the past couple months and approaching its previous all-time high, not all companies are riding the wave. As of June 6, this growth stock is trading an eye-watering 84% below its peak, a record mark that was established in July 2021. At this point, maybe it's too hard to ignore the dip.

Should you buy shares in June and hold them for the next 20 years? Here are some important variables to think about.

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Image source: Roku.

Riding two secular trends

The internet has helped to reshape industries, corporate strategy, and consumer behavior. This is evident in the rise of streaming entertainment. It also reveals itself when you look at the digital advertising market.

The business that benefits from both of these secular trends is Roku (NASDAQ: ROKU). It provides users with a single platform that allows them to aggregate all their content. At a time when it seems there's an unlimited number of streaming apps out there, it's extremely valuable to have them all in one place. As such, Roku has top market share among smart TV operating systems in the U.S., Mexico, and Canada. A whopping 40% of new TVs sold in the U.S. during the first quarter came equipped with Roku software.

You couldn't tell by the stock's weak performance, but this company continues to post double-digit growth. Revenue increased 16% in Q1 (ended March 31). This was after the top line expanded by 18% in 2024. At the end of last year, Roku counted 89.8 million memberships, although it has stopped reporting this key metric.

It's worth highlighting that 86% of the company's sales in the first quarter of 2025 came from its platform segment, which makes money partly from advertising. "With more than half of U.S. broadband households and our expanding ad product offering, we provide marketers the reach and visual impact of traditional TV with the performance of digital advertising," the latest shareholder letter reads.

Understanding the financial situation

In 2021, Roku generated $242 million in net income. That was a great year, but it was an anomaly. Roku has consistently reported net losses, to the tune of a cumulative $866 million in the past nine quarters. This could change, though, due to expense controls.

The leadership team expects to post positive operating income in 2026. As a scaled internet-enabled enterprise, Roku should be able to grow the bottom line as it scales up and increases revenue. Investors should pay close attention.

Roku had its initial public offering in 2017. So I can certainly understand the critical viewpoint; if the business hasn't yet become consistently profitable, then maybe it won't happen anytime soon. In other words, we could be looking at the true nature of the company's financial situation.

It helps that the company has a clean balance sheet. As of March 31, Roku had $2.3 billion in cash and cash equivalents. On the other hand, it had zero debt. This reduces the chance it runs into financial troubles.

Valuation, risk, and time horizon

Because the stock has gotten crushed, the valuation is compelling. Shares trade at a price-to-sales ratio of 2.7. This is 69% below the stock's historical average. The current setup demonstrates just how much investors have soured on the business.

That valuation is attractive, no doubt. And I think it makes up for what I view as an important risk.

Investors can't ignore the competitive landscape. Big tech giants Alphabet, Amazon, and Apple all offer their own streaming apps and media hardware devices, putting them all head-to-head against Roku. This just means that Roku will have to remain focused on doing what's best strategically for its viewers and for its ad partners. So far, though, it has held its own in the industry.

It's difficult to say ahead of time that you should own a stock for 20 years. That's very far out into the future. However, Roku has the necessary ingredients to be a big winner. It has a cheap valuation, leading industry position, and meaningful growth potential. I believe investors who have a long time horizon should take a closer look at buying the stock.

Should you invest $1,000 in Roku right now?

Before you buy stock in Roku, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Roku wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 2, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Roku. The Motley Fool has a disclosure policy.

Apple (NASDAQ: AAPL) shares are down 18% in 2025 (as of June 6). This makes Apple the worst-performing "Magnificent Seven" constituent this year, besides Tesla. Investors are probably concerned about tariff uncertainty and the company's slow progress with artificial intelligence (AI).

The stock is currently 21% below its peak. So, it has some work to do to get back to its former glory. Legendary investor Warren Buffett and his conglomerate, Berkshire Hathaway, have sold a sizable chunk of their shares in the past several quarters.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

However, should you go against the Oracle of Omaha's moves and buy the dip on Apple stock? I think the answer might surprise you.

Image source: Getty Images.

It's easy to recognize the positive traits

I mention Buffett because many individual investors like to follow his buy and sell decisions. Clearly, when Berkshire first bought Apple in early 2016, they must've thought the tech giant was a high-quality enterprise. It's not hard to see why.

Apple's brand is arguably the most recognizable in the world. This position wasn't created overnight. It took years and years of introducing truly exceptional products and services, that were well designed and incredibly easy to use, on a global scale. Apple is an icon, to say the least.

That brand has helped drive Apple's pricing power. And this supports the company's unrivaled financial position. Apple remains an unbelievably profitable business. It brought in $24.8 billion in net income in the latest fiscal quarter (Q2 2025 ended March 29).

Apple's products and services are impressive on their own. However, it's the combination of both of these aspects that creates the powerful ecosystem. Consumers are essentially locked in, which creates high barriers for them to switch to competing products. This favorable setup places Apple in an enviable position from a competitive perspective.

Even the best deal with issues

Despite Apple's market cap of nearly $3.1 trillion, which might make some investors believe it's immune to external challenges, this business is dealing with some notable issues recently. There are three that immediately come to mind.

The first problem is that Apple's growth engine seems to be decaying. Net sales were up less than 7% between fiscal 2021 and fiscal 2024. And they're up just over 4% through the first six months of fiscal 2025. According to management, there are likely over 2.4 billion active Apple devices across the globe. That number continues to rise with every passing quarter, but you get an idea of how ubiquitous these products are. Plus, the maturity of the iPhone, now almost two decades into its lifecycle, might lead to limited opportunities to further penetrate markets.

Critics can also call out Apple's slow entrance into the AI race. For example, we won't see an AI update to Siri until next year, a launch that was delayed. At the same time, it seems like other companies are moving rapidly to win the AI race.

Lastly, Apple has been and could continue to be drastically impacted by the tariff situation. China, which has gotten the most attention from President Donald Trump during the ongoing trade tensions, has been a manufacturing powerhouse for Apple. The business is being forced to shift its supply chain around to minimize the impact. Apple CEO Tim Cook said that the situation makes it challenging to forecast near-term results.

There's no margin of safety

Even though this stock trades 21% off its peak, investors aren't really getting a bargain deal here. The price-to-earnings ratio is 32 right now. That's not cheap for a company whose earnings per share are only expected to grow at a compound annual rate of 8.8% between fiscal 2024 and fiscal 2027.

In my view, there's zero margin of safety. If you're an investor who wants to generate market-beating returns over the next five years, I don't think you should buy Apple today.

Should you invest $1,000 in Apple right now?

Before you buy stock in Apple, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 2, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Tesla. The Motley Fool has a disclosure policy.

When it comes to massive retailers, perhaps two of the businesses that immediately come to mind are Costco Wholesale (NASDAQ: COST) and Home Depot (NYSE: HD). The former specializes in selling bulk quantities of general merchandise, while the latter focuses on home improvement goods. Shares of both companies have been monster winners in the past four decades.

The economic picture might look a bit gloomy. But that isn't stopping you from allocating capital to this sector. Which of these top retail stocks is the better buy right now?

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Image source: Getty Images.

Costco continues to put up solid financial performance

Costco's financial results make you forget that the U.S. is in the middle of an unprecedented trade war, soft consumer confidence, and record levels of credit card debt. During the fiscal 2025 third quarter (ended May 11), total revenue was up 8% year over year. This was supported by a 5.7% gain in same-store sales, which itself was boosted mainly by higher foot traffic.

This points to the clear value proposition that shoppers see. And it makes complete sense why. Costco provides extremely low prices on high-quality goods in a no-frills environment. It has immense buying power that allows it to obtain favorable pricing on merchandise for its warehouses. This directly benefits shoppers.

The customer base keeps growing, with about 5 million net new cardholders joining in the past 12 months. Costco also benefits from loyalty, as the membership renewal rate was 92.7% in the U.S. and Canada. The business should prove resilient should economic conditions deteriorate, given consumers' ability to handle all of their shopping needs in one stop and in a budget-friendly manner.

This is a massive enterprise. However, the growth story isn't over. Costco plans to end fiscal 2025 having opened 24 net new warehouses. The plan is to expand the physical footprint by about 25 to 30 new stores each year going forward, with plenty of opportunity both in the U.S. and internationally.

Home Depot is in the midst of a slowdown

Home Depot hasn't been navigating the economic situation that well. Higher interest rates pressure the housing market. And inflationary pressures, as well as general uncertainty among consumers, don't bode well for expensive renovation projects. This explains why Home Depot's same-store sales declined 3.2% in fiscal 2023 and 1.8% in fiscal 2024. On a bright note, this key metric is expected to rise 1% this fiscal year, according to management.

With this business, it's best to zoom out and pay attention to the bigger picture. For starters, Home Depot remains an extremely profitable enterprise. Its operating margin has averaged 14.4% in the past five years. Consistent earnings mean investors benefit from regular payouts. Home Depot spent $2.3 billion in dividends just in the past fiscal quarter. Management also occasionally repurchases shares.

The home improvement industry is massive, estimated to be worth $1 trillion in annual revenue. Home Depot is the clear leader, but its 16% market share means there is room to continue growing. It has the brand name, omnichannel capabilities, and product availability to outperform smaller rivals.

It helps that there is so much untapped equity in the housing market, thanks to home prices rising substantially in the past five years in the U.S. Homeowners have the wherewithal to tackle upgrades when they feel confident enough about the economy. And this should drive revenue growth for Home Depot.

How important is valuation to you?

Each of these leading retailers possess their own unique investment merits. However, I don't think it's a polarizing view to say that Costco is the better business. Its financial performance speaks for itself.

This doesn't mean you should go out and immediately buy Costco shares. The valuation will give anyone a reason to pause and think twice. Shares trade at a price-to-earnings (P/E) ratio of 59.7, which is extremely expensive. It's totally reasonable to expect that multiple to come down meaningfully over the next five or 10 years, which introduces a notable headwind for shareholders.

Home Depot stock, on the other hand, trades at a more reasonable P/E ratio of 25.3. To be clear, the business isn't humming along quite like Costco is. But things should improve once the economic backdrop is more favorable. And this means Home Depot has greater upside than Costco.

Should you invest $1,000 in Costco Wholesale right now?

Before you buy stock in Costco Wholesale, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Home Depot. The Motley Fool has a disclosure policy.

Financial services is arguably the most important industry in our economy, as the movement of money, as well as saving and lending activities, is vital for individuals, businesses, and governments. But alongside the massive banks we're all familiar with, there are smaller businesses to pay attention to.

In the past decade, the integration of technology within this sector in an effort to better serve customers has become hard to ignore. And this ongoing trend has investment implications for those looking to put money to work in this area.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Here are the smartest fintech stocks investors can buy with $500 right now.

Image source: Getty Images.

PayPal

The first fintech enterprise that should be on your radar is PayPal (NASDAQ: PYPL). The business has been at the forefront of digital payments for more than two decades, and it continues to be a leader in the space.

PayPal has 436 million active accounts. During the first quarter, it handled a whopping $1.7 trillion in annualized total payment volume, showcasing its impressive scale. There are multiple segments under the hood, like the PayPal-branded checkout solution, Braintree for merchants, and Venmo. It's the latter that is exhibiting the fastest growth lately, driven by the notable adoption of the Venmo debit card product.

While there is intense competition in the payments landscape, PayPal has carved out a successful niche. That's because it has a strong brand name in the industry that individuals and merchants have come to trust. As a two-sided platform, the business benefits from a powerful network effect.

PayPal's financial situation is robust. The balance sheet is in solid shape, with $15.8 billion in cash, cash equivalents, and marketable securities compared to $12.6 billion in debt. Profitability is worth mentioning, as the operating margin was a stellar 19.6% in Q1. For this full year, the company is expecting to produce $6 billion to $7 billion in free cash flow. The plan is to spend $6 billion just on share repurchases.

The market has soured on this company, as the stock currently trades 77% off its peak from July 2021 (as of June 3). This gives investors a cheap forward P/E ratio of 14 to take advantage of. That's a good deal for a growing and profitable payments leader.

SoFi Technologies

Another fintech stock to buy right now is SoFi Technologies (NASDAQ: SOFI), the budding digital bank that's continuing to register fantastic growth. During the first quarter, the business posted a year-over-year revenue gain of 20% while adding 800,000 net new customers to the mix. As of March 31, SoFi had amassed 10.9 million customers, up tenfold in the past five years.

Clearly, the company's products and services are a hit. That's because SoFi is finding success with a goal that seems to emphasize utilizing technology to provide an exceptional user experience when it comes to handling one's finances. The average customer uses 1.5 different products, so there remains a significant opportunity to cross-sell.

A new development is that SoFi is now firmly profitable. Diluted earnings per share (EPS) totaled $0.06 during Q1, marking the sixth straight quarter of positive generally accepted accounting principles (GAAP) net income. The leadership team believes this is just the beginning. After forecasting $0.68 (at the midpoint) of EPS in 2026, the expectation is for this bottom-line figure to increase at a compound annual rate of between 20% and 25% in the years after.

It won't always be smooth sailing. Something all banks deal with is cyclicality. Should there be an economic downturn in the U.S., it's likely that SoFi's robust growth and improving profitability will take a hit. This should be temporary, though.

As of this writing, investors must be comfortable paying a forward P/E ratio of 49 to add the stock to their portfolios. At first glance, this doesn't look like a bargain deal. However, when you consider the earnings trajectory, the valuation becomes more compelling.

Should you invest $1,000 in PayPal right now?

Before you buy stock in PayPal, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PayPal wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short June 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy.

Uber Technologies (NYSE: UBER) has been on an absolute tear. As of June 3, its shares have soared 38% in 2025. That's a tremendous gain during a time when the broader S&P 500 index is up just 2%.

If you zoom out, the return is even more eye-popping. In the past two years, this top growth stock has catapulted 109% higher. Strong financial performance is clearly winning over the investment community.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Perhaps you've missed the ride thus far. Is it too late for investors to buy Uber?

Image source: Getty Images.

Diversified business model

It's been incredible to observe Uber's monumental ascent. What was once solely a ride-hailing service has evolved into both a mobility and delivery behemoth. In Q4 2019, prior to the COVID-19 pandemic, mobility gross bookings represented 75% of the company's total. In the latest quarter (Q1 2025), it was an almost even split between mobility and delivery.

This kind of diversified model is hard to overstate, and it gives Uber an advantage. This shows up in the ability to leverage the same driver network, allowing these gig workers to earn more money. Uber has more data to work with, which can support various marketing and promotional activities. And it can be a holistic solution for consumers who don't want to navigate multiple apps.

What's more, Uber brings in more than one revenue stream. In the first quarter of 2025, it registered $6.5 billion in revenue from mobility and $3.8 billion from delivery. There is a freight segment as well, which is tiny by comparison.

Generating substantial profits

What was probably once unimaginable to the critics is now a reality. And that is the fact that Uber is extremely profitable these days. It's a scaled platform that is boosting bottom-line performance. Uber posted $1.2 billion in operating income in Q1. That figure is a drastic improvement from a $1.3 billion operating loss in the first quarter of 2020.

A fresh focus on creating a more efficient organization is clearly working. The management team expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow about 37% to 40% between 2024 and 2027.

Operating from a position of power

Uber continues to operate from a position of strength thanks to its tremendous network effect. It counted 170 million monthly active users in Q1. There are more than 7 million drivers. And last year, Uber surpassed 1 million merchants. With more users, drivers, and merchants, the entire platform constantly becomes more valuable to all stakeholders.

Uber's competitive position is also supported by its powerful brand presence. The Uber name is now often used as a verb, both for getting from point A to point B and for having something delivered. That mindshare works wonders for Uber's visibility.

And it highlights just how valuable Uber has become to other companies that want to tap into such a massive user base. Uber recently announced partnerships with OpenTable and Delta Air Lines.

And key players working on autonomous vehicle (AV) technology, like Waymo, WeRide, and many others, have also chosen to partner with Uber to help further develop, improve, and commercialize their services. Because of Uber's competitive strengths and unrivaled reach, it makes sense these partners are leaning on it. Uber is positioning itself to be a leader in AV.

Are you late to the Uber party?

At the start of 2025, shares traded at a very compelling forward price-to-earnings (P/E) ratio of 16.7. Of course, the situation isn't as cheap today. The current multiple is 22.9. However, I don't believe this valuation is asking too much of investors.

As mentioned, there are many reasons to like this business. And there remains a sizable growth opportunity. For instance, CEO Dara Khosrowshahi says that AV technology alone presents a $1 trillion opportunity just in the U.S. Additionally, Uber is trying to sign up more teenagers, increase rider frequency, and expand use cases.

There appears to be substantial upside for prospective investors over the long term. This means it's not too late to buy Uber stock.

Should you invest $1,000 in Uber Technologies right now?

Before you buy stock in Uber Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $869,841!*

Now, it’s worth noting Stock Advisor’s total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

Warren Buffett's incredible track record allocating capital for Berkshire Hathaway makes him a legend. For the average investor, following the conglomerate's portfolio to find potential ideas is a smart use of time.

In Berkshire's massive $277 billion portfolio, one well-known consumer brand is currently the third-largest position. There's no doubt that investors are familiar with this business, as it's been around for over a century.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

If you invest $1,000 in this top dividend stock, could you become a millionaire one day?

Image source: Getty Images.

Generating sizable income for Berkshire

Berkshire has a stake in numerous companies. However, it owns a whopping 400 million shares in Coca-Cola (NYSE: KO), giving it control of 9.3% of the beverage giant. Berkshire has been a shareholder for decades, which highlights Buffett's appreciation of Coca-Cola.

Coca-Cola currently pays a quarterly dividend of $0.51 that yields 2.84% on a yearly basis. The business deserves a lot of credit for raising the payout for an unbelievable 63 straight years, a track record that investors will probably struggle to find anywhere else. This demonstrates the company's staying power.

This position generates a huge income stream for Buffett. Berkshire rakes in $816 million in annualized income from its stake in Coca-Cola. It's no wonder shares aren't being sold.

Coca-Cola is a high-quality business

It's easy to understand why Buffett likes Coca-Cola's business. For starters, it has one of the world's most recognizable brands. Coca-Cola has a successful history of providing consumers with consistent products that satisfy their thirst. Add to this effective marketing, a truly global footprint with a presence in more than 200 countries, and 2.2 billion servings consumed daily, and it's obvious that Coca-Cola's high visibility is a key part of its success.

What's more, the brand supports ongoing pricing power, a trait Buffett loves. Just in the latest quarter (Q1 2025, ended March 28), the company's sales benefited from a 5% impact from favorable pricing and mix. The fact that customers are loyal to the brand means that Coca-Cola can likely continue to increase prices within reason and not deal with tapering demand.

Coca-Cola is also an extremely profitable enterprise. The company relies on third-party bottlers and distributors to get its products to consumers. This results in a more efficient operating model that helped drive a 32.9% operating margin in Q1.

Another important characteristic that Coca-Cola has that long-term investors should appreciate is its longevity. It seems that the economy is undergoing rapid change these days, thanks to the continuing impact of technology. Coca-Cola simply doesn't invite much in the way of disruption, which means its profits and dividend payouts face minimal threats. This reduces risk.

What investors should expect

In the past 10 years, Coca-Cola has produced a total return of only 137%. This figure includes dividends. That performance is worse than the three stock market indexes, which is discouraging for investors looking to amass serious wealth.

Since the business is so mature with muted growth prospects, it's a good idea to temper expectations. The share price isn't going to skyrocket in the years ahead.

The valuation also isn't cheap. As of this writing, the stock trades at a price-to-earnings ratio of 28.8, above its trailing-five-year average.

The lack of substantial growth prospects, coupled with the elevated valuation, means Coca-Cola won't turn you into a millionaire. But dividend investors might still be interested in adding the stock to their portfolios.

Should you invest $1,000 in Coca-Cola right now?

Before you buy stock in Coca-Cola, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $804,688!*

Now, it’s worth noting Stock Advisor’s total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 19, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.