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Received yesterday — 9 August 2025

The Best AI ETF to Invest $1,000 In Right Now

Key Points

  • This popular ETF has heavy exposure to some of artificial intelligence (AI)’s biggest beneficiaries.

  • It's hard to argue with the more than fivefold total return in the past decade.

  • Gaining broad diversification to the AI revolution gives investors peace of mind.

You've become familiar with the artificial intelligence (AI) boom by now. Companies are investing huge amounts of capital to build out the infrastructure to power AI models. Users continue to navigate to chatbots for information. And investors want to find ways to make money from this trend.

One option is to choose individual stocks. However, this is time-consuming, and it may require skills that you simply don't possess.

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 »

Another, easier path is to find an exchange-traded fund (ETF) to put some money in. This passive approach can provide diversified exposure to the most powerful secular theme in recent years.

Here's the best AI ETF to invest $1,000 in right now.

AI robots holding chart going up and right.

Image source: Getty Images.

Know what you own

The Invesco QQQ Trust (NASDAQ: QQQ) is a wonderful choice for investors who want to bet on AI. This ETF tracks the performance of the Nasdaq-100, which contains the 100 biggest nonfinancial companies that trade on the Nasdaq exchange. It's a more concentrated index than the S&P 500 (SNPINDEX: ^GSPC).

It's critical for investors to understand what exactly they'd be owning if they add the Invesco QQQ Trust to their portfolios. To be clear, this ETF provides a lot of exposure to the AI trend. A quick look at the top positions will prove this point.

The largest holding is Nvidia, which commands 10.2% of the ETF. There has been no greater beneficiary of all the AI spending happening than this business, which provides the graphics-processing units that power AI model training. Nvidia shares are up a whopping 1,490% in the past five years (as of Aug. 5).

Additionally, Microsoft, Amazon, and Alphabet combined make up 19.5% of the Invesco QQQ Trust. These three businesses operate the largest cloud computing platforms in the world. They're helping build out the infrastructure layer for other companies to develop their own AI applications.

Besides AI, the Invesco QQQ Trust gives investors exposure to other secular trends shaping our economy. Tech-driven themes like e-commerce, digital payments, digital advertising, and streaming entertainment will also have an impact on this ETF's performance as we look ahead.

Stellar performance at a cheap price

In the past 10 years, the Invesco QQQ Trust has generated a total return of 447%. On an annualized basis, this translates to a superb 18.5% gain. A $1,000 investment in August 2015 would be worth $5,470 today. This performance is well ahead of what investors would have achieved had they bought an ETF that tracks the S&P 500, which had a total return of 261% in the last 10 years.

It's important to compare the Invesco QQQ Trust to a well-known ETF product that has grown in popularity in the past several years. The Ark Innovation ETF, run by famed investor Cathie Wood, focuses on "disruptive innovation." Like the Invesco QQQ Trust, it emphasizes betting on big tech trends.

But in the last 10 years, it has significantly underperformed the QQQ. And even worse, its expense ratio of 0.75% is nearly four times that of the Invesco QQQ Trust's 0.20%. This is very difficult to overlook, and it speaks to the allure of putting money to work in a passive investment vehicle.

While the past decade's return has been spectacular, it's impossible to know what the future will hold. However, it's a smart idea to consider investing $1,000 in the QQQ today. As the AI revolution plays out, investors will have peace of mind knowing that they own the companies that have been, and will continue to be, direct beneficiaries of this game-changing technology.

Should you invest $1,000 in Invesco QQQ Trust right now?

Before you buy stock in Invesco QQQ Trust, 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 Invesco QQQ Trust 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 $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,863!*

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See the 10 stocks »

*Stock Advisor returns as of August 4, 2025

Neil Patel has positions in Invesco QQQ Trust. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. 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.

Here's the Smartest Way to Invest in the S&P 500 in August

Key Points

  • Investors looking to gain passive exposure to the market should consider buying an ETF that follows the S&P 500.

  • This top ETF carries an extremely low expense ratio, which results in investors keeping more of their money over time.

  • Even near record levels, it’s a smart idea to put money to work in the stock market.

The S&P 500 index has had a great run in recent memory. Since early August 2015, the benchmark has generated a total return of 261% (as of Aug. 5). Low interest rates, durable economic growth, and passive investment flows have certainly helped.

Given the impressive above-average performance of the closely watched index, investors are probably thinking about how to gain exposure. Here's what I believe is the smartest way to invest in the S&P 500 in August.

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 »

ETF written in wooden blocks with magnifying glass sitting on top.

Image source: Getty Images.

A look at this popular ETF

One of the best ways to invest in the S&P 500 index is to add the Vanguard S&P 500 ETF (NYSEMKT: VOO) to your portfolio. This exchange-traded fund (ETF) tracks the performance of the S&P 500, which consists of 500 large and profitable companies that trade on U.S. exchanges. This investment product is offered by Vanguard, a reputable firm in the industry with a five-decade history that manages trillions of dollars in assets.

It's important for investors in this ETF to understand what exactly they own. Yes, there are 500 different stocks. However, some of the biggest businesses have a higher weighting.

For instance, Nvidia, Microsoft, Apple, Amazon, and Meta Platforms are the top five positions. Consequently, the information technology sector has a 33.1% weighting. So, investors in the ETF should probably be bullish on key themes shaping the economy, like artificial intelligence or cloud computing.

But all 11 of the stock market's sectors are represented in the Vanguard S&P 500 ETF. This is essentially an easy method to obtain instant equity diversification in your portfolio. Investors don't need to be successful at trying to pick individual winners. They benefit from the ongoing innovation and durable growth of the American economy.

Beating the pros

Following the gains of the S&P 500, the Vanguard S&P 500 ETF has produced a total return of 260% in the past decade. This means that a $10,000 investment made a decade ago would be worth $36,000 today. This fantastic result translates to an annualized gain of 13.7%.

What's noteworthy is that this return undoubtedly outperforms the vast majority of professional money managers. These so-called experts have a terrible track record that sees them generate performance well below the benchmark.

Even better, investors who buy the Vanguard S&P 500 ETF pay an extremely low expense ratio of 0.03%. Of that hypothetical $10,000 investment, just $3 goes to Vanguard on a yearly basis. That's exactly the type of low-cost setup you should want when it comes to your investments.

Buying near record highs

As of Aug. 5, the Vanguard S&P 500 ETF trades just 1% below its peak. The market has held up well in 2025, an encouraging trend given the extreme level of macro uncertainty there has been with President Donald Trump's changing trade policies. Investors have largely brushed off any new tariff announcements, with optimism being present.

Astute investors will rightfully wonder if now is still a good time to put money to work. Wouldn't it be better to wait for a meaningful pullback to take advantage of more attractive valuations? While this line of thinking always sounds accurate in theory, timing the market correctly is impossible to do. Investors are better off buying early and often, letting compounding work its magic over several years and decades.

Despite the vote of confidence, it's still best to temper expectations. I believe the Vanguard S&P 500 ETF will continue to perform well over the long haul. However, I wouldn't be surprised if the annualized gain reverted back toward the 10% long-term average. This still makes the ETF a smart investment choice.

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 $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,108,033!*

Now, it’s worth noting Stock Advisor’s total average return is 1,047% — a market-crushing outperformance compared to 181% 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 August 4, 2025

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.

Where Will Apple Be in 1 Year?

Key Points

  • Apple beat analyst estimates when it reported Q3 2025 financial results.

  • CEO Tim Cook is ready to spend much more to accelerate Apple’s push into AI, which has been underwhelming so far.

  • The stock’s valuation doesn’t add sizable upside for prospective investors.

Apple (NASDAQ: AAPL) just reported third-quarter 2025 (ended June 28) financial results that pleased investors. Revenue soared 9.6% year over year to $94 billion, while diluted earnings per share climbed 12.1%. These headline figures beat Wall Street estimates.

Despite the upbeat results, Apple shares have disappointed. They're down 15% in 2025 (as of Aug. 6). And in the last 12 months, they are essentially flat. The S&P 500 index is up 22% during the same time. This trend doesn't inspire confidence among 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 »

But maybe the future will bring optimism. Where will this consumer discretionary stock be one year from now?

Person pointing and pondering while looking up.

Image source: Getty Images.

Leaning into the AI opportunity

The general view is that Apple has so far fallen behind in the ongoing artificial intelligence (AI) race. Apple Intelligence, its AI system that's integrated with its devices and software, has launched 20 different features for users. But it hasn't exactly had that wow factor that people are accustomed to seeing from Apple.

There was also supposed to be an AI-powered Siri launching in late 2024. However, this more personalized voice assistant won't be introduced until sometime in 2026. Big tech peers have gone full steam ahead in the meantime, while it appears that Apple is playing catch-up.

On the latest earnings call, though, CEO Tim Cook gave investors a reason to be bullish. "We see AI as one of the most profound technologies of our lifetime," he said on the Q3 2025 earnings call. Maybe he's finally starting to regard AI as a serious paradigm shift that can have huge implications for his business.

Apple is raising the amount of money it's spending on AI-related capital expenditures (capex). CFO Kevan Parekh said capex spending "is going to grow substantially." In Q3, the company's capex totaled $3.5 billion. Mergers and acquisitions could be part of the plan.

Therefore, investors shouldn't be surprised for Apple to push more aggressively into AI initiatives. This seems to be the right move from a strategic perspective. At the end of the day, it's all about Apple being able to bolster its competitive position. It's hard to say what new products or services will come next from this.

It's also difficult to see any meaningful effect on the company's financials. For Apple, this means being able to sell more devices and simultaneously grow the services segment. According to Wall Street consensus analyst estimates, Apple's revenue will rise 6.3% in fiscal 2025 and 4.8% in fiscal 2026.

Making accurate predictions is hard

It can be a valuable exercise for investors to understand the current situation that a business is in, as well as what the near future might hold. However, making correct predictions about the direction of a stock is almost impossible to do. There are so many variables at play.

For what it's worth, the consensus price target for Apple shares is $233.61, which implies 10.9% upside from today's price. That would certainly be an improvement from the last 12 months' performance. It's a gain that I wouldn't be surprised by.

But investors looking at Apple shouldn't make a decision based on what could happen over the next 12 months. Instead, it's worth assessing whether or not this is a business that you'd want to own for the next five years. That's the proper way to invest, with a long-term mindset.

Right now, Apple stock trades at a price-to-earnings ratio of 31.9. That's a high valuation to pay for a company whose growth is harder to come by these days. To be fair, Apple possesses one of the world's strongest brands, its products and services are hugely in demand, and its profitability is incredible. However, I don't believe investors who own this stock will achieve market-beating returns between now and 2030, regardless of what happens in the next year.

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 $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,108,033!*

Now, it’s worth noting Stock Advisor’s total average return is 1,047% — a market-crushing outperformance compared to 181% 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 August 4, 2025

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

Received before yesterday

Where Will Bitcoin Be in 10 Years?

Key Points

  • Bitcoin will keep attracting larger pools of capital, thanks to a favorable regulatory stance from governments.

  • Bitcoin's scarcity stands out when compared to constantly debasing fiat currencies.

  • It wouldn’t be surprising to see Bitcoin’s market cap reach gold’s value in a decade.

It wasn't always the case that Bitcoin (CRYPTO: BTC) was constantly in the news and always catching the attention of investors. In the early days, this digital asset flew under the radar. It was mainly viewed as a fun project for so-called "cypherpunks" who were interested in individual freedoms and a new financial order.

Things have evolved drastically. Bitcoin now carries a market cap of $2.3 trillion, and it seems everyone is following its every move these days. That's not surprising, given that it has been without a doubt one of the best assets any investor could've owned. In the past decade, Bitcoin has soared 41,320% (as of Aug. 5).

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 »

Maybe the future still presents upside for patient investors. Where will the world's most valuable cryptocurrency be in 10 years?

Gold coins with the Bitcoin logo on them.

Image source: Getty Images.

Continuation of trends

Instead of trying to accurately predict the future, investors might be better served by looking at the present clearly. This perspective will make some trends stand out.

Bitcoin will continue to attract larger pools of capital. The launch of spot Bitcoin ETFs provided a compliant way for hedge funds, sovereign wealth funds, pension funds, and endowments to all get in on the action.

The regulatory backdrop has gotten much more favorable for Bitcoin and the cryptocurrency industry. For instance, the White House set up a Strategic Bitcoin Reserve. Other countries could adopt a friendly view, too.

Moreover, the ecosystem surrounding Bitcoin keeps expanding. It's not just related to payments, although there are exciting things happening in these areas, such as the lightning network. Within financial services, Bitcoin can now be used as collateral for mortgages.

Block is innovating when it comes to hardware. The fintech enterprise sells a user-friendly Bitcoin wallet called Bitkey. And under the Proto brand, it's developing equipment to support mining decentralization. Over time, there will surely be more companies building new products and services that boost Bitcoin's adoption.

Over the next decade, these notable trends are likely to continue, which should propel Bitcoin's price.

Bitcoin should keep rising

Bitcoin stands out among the sea of cryptocurrencies. And this will bode well for its future.

First, it's easily the most recognizable blockchain network on the planet. That's the result of being the first cryptocurrency, with the highest market cap. This leads to deep liquidity and a powerful network effect, where the addition of more stakeholders, like users, nodes, miners, and developers, makes Bitcoin more valuable over time.

Scarcity is Bitcoin's most important characteristic. Written in its software is a hard supply cap of 21 million units, with a pre-determined inflation rate that's enforced by a halving schedule.

The world is waking up, realizing how valuable it is to own something with a finite supply. In this way, Bitcoin is far superior to fiat currencies. Take the U.S. dollar, which is constantly being debased. In the past 15 years, the M2 money supply in the U.S., which counts physical cash in circulation and money in checking accounts and easily accessible savings accounts, has exploded from $8.6 trillion to $22 trillion. This trend has no end in sight.

Any investor who has a time horizon of at least a decade should consider having some of their diversified portfolio's assets allocated to Bitcoin. I'm confident that by 2035, the digital asset's price will be significantly higher. But to be clear, Bitcoin certainly won't register the same gain that it did in the past 10 years. As it becomes more mature, the potential upside will naturally diminish.

Comparing Bitcoin to gold makes sense. The precious metal's market cap of $23.1 trillion is 10 times more valuable than Bitcoin's $2.3 trillion. I don't think it's unreasonable for the crypto to reach gold's value in 10 years. This would translate to a 25.9% annualized gain, much lower than Bitcoin's historical returns. However, this kind of return should easily outperform the stock market if it indeed comes to fruition.

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 $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,099,758!*

Now, it’s worth noting Stock Advisor’s total average return is 1,046% — a market-crushing outperformance compared to 181% 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 August 4, 2025

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

Is Amazon Stock a Long-Term Buy?

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.

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?

Person putting package in Amazon locker.

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.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*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.

Should Netflix Be More Like Walt Disney?

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.

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.

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 »

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.

inverted roller coaster during sunset.

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.

Is This Top Warren Buffett Stock a No-Brainer Buy Right Now?

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.

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).

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 is it a no-brainer buying opportunity today?

Hands holding credit card.

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.

1 Reason to Buy Visa (V)

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.

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.

Contactless checkout with Visa card.

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.

1 No-Brainer Vanguard ETF to Invest $1,000 Into This July

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.

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.

ETF written in wooden blocks with magnifying glass sitting on top.

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.

Warren Buffett-led Berkshire Hathaway Has 22% of Its $290 Billion Portfolio Invested in 1 Stock That's Up 749% in 9 Years

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.

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?

Warren Buffett at a microphone.

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.

Can Shiba Inu Reach $1 in 2030?

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.

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?

Shiba Inu dog running in sand.

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.

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 Bitcoin and Nvidia. The Motley Fool has a disclosure policy.

Prediction: Bitcoin Will Be Worth $1 Million in 10 Years

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.

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 »

A smartphone displaying a trading app on the Bitcoin page.

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.

Could Investing $10,000 in Coca-Cola Make You a Millionaire?

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 »

many glass bottles filled with cola with red caps are lined up.

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.

See the 10 stocks »

*Stock Advisor returns as of June 30, 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.

Should You Buy SoFi While It's Below $20?

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?

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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?

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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.

Is Tesla Stock a Millionaire Maker?

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.

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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.

Where Will SoFi Be in 5 Years?

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.

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

SoFi office shot with SoFi branding poster in background.

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?

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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.

Can Nike Stock Double a $1,000 Investment in 5 Years?

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.

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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?

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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

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  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $367,516!*
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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, Apple, Lululemon Athletica Inc., and Nike. The Motley Fool has a disclosure policy.

Why Amazon Stock Still Looks Like a Long-Term Winner

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.

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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!*

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*Stock Advisor returns as of June 2, 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. The Motley Fool has a disclosure policy.

Down 84%, Should You Buy This Growth Stock in June and Hold for 20 Years?

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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Roku tv remote.

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.

See the 10 stocks »

*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.

Down 21%, Should You Buy the Dip on Apple Stock? The Answer Might Surprise You.

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.

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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.

Buy sell stock buttons on stock chart tablet.

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?

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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.

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