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Should You Invest in Coupang Right Now?

Coupang (NYSE: CPNG) is often referred to as the "Amazon of South Korea." It's a fast-growing e-commerce store that is following a strategy similar to its U.S. counterpart by offering a range of services like food delivery (Coupang Eats) and entertainment (Coupang Play) to supplement its online retail business.

The thing is, Coupang is not trying to be the next Amazon. It started out years ago as an eBay-like marketplace. Even though Coupang was profitable, founder and CEO Bom Kim didn't like the direction in which the company was headed and decided to completely restructure the business into what it is today.

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 »

Since 2018, the company has grown revenue from $4 billion to $31 billion on a trailing-12-month basis. It dominates the Korean e-commerce market. While it's uncertain how far Coupang might be able to expand beyond South Korea over the long term, the stock is offering a reasonable valuation that may undervalue its prospects in existing markets.

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Solid momentum in 2025

On a currency-neutral basis, Coupang has delivered consistent growth of 20% or more since its initial public offering in 2021. It entered 2025 with continued momentum, with revenue up 21% year over year in the first quarter, excluding currency changes.

Coupang has built a strong advantage with its logistics infrastructure that can deliver orders overnight to customers living in high-density population centers. This has kept competitors like Amazon at bay, allowing Coupang to gain over 23 million customers, and it's still growing. Its active customer count grew 9% year over year last quarter.

Moreover, Coupang is seeing its free cash flow and margins improve as it scales investments and grows revenue. It generated $1 billion in free cash flow on a trailing-12-month basis, which is a notable improvement over the negative free cash flow reported just a few years ago. Investments in technology, automation, and robotics are benefiting its ability to deliver packages faster while reducing costs.

Investors should expect Coupang's free cash flow to increase over the next several years, which could benefit the stock.

Why the stock is a long-term buy

Coupang has a solid lead in South Korea, but investors need to know if its strategy will work outside of its home market. On that score, there are early signs that Coupang could be successful expanding in select international markets.

The e-commerce giant entered Taiwan in 2021 and continues to expand. It recently launched its WOW membership program there, bringing free shipping and other benefits for a subscription fee. The continued investment in Taiwan indicates management is seeing high returns on capital spending.

But it's also important to know that the South Korean retail market alone is worth $500 billion. Coupang controls a very small percentage of the combined market in both countries, providing plenty of long-term growth potential.

What makes the stock appealing is that its valuation doesn't require sky-high growth for investors to earn good returns. The stock's price-to-sales multiple of 1.7 is fair for its current pace of growth.

Given its growth trajectory and opportunities ahead, investors buying the stock today could double their investment in five years, assuming Coupang can continue growing revenue around 15% per year and the stock trades at the same price-to-sales multiple. If Coupang continues to show more potential for international growth, the upside could be quite significant over the next few decades.

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

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

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

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

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*Stock Advisor returns as of June 9, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has positions in Coupang. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.

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2 Stocks That Could Be Easy Wealth Builders

Investors can often position themselves for success in the stock market by focusing on industry leaders that are consistently reporting strong revenue growth. These are usually companies that are benefiting from major tailwinds and have a long runway of growth in their respective industries.

The following growth stocks fit that profile, and despite recently hitting new highs, they still offer excellent long-term return potential.

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 »

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1. Roblox

Roblox (NYSE: RBLX) is a popular interactive gaming platform that has seen its stock take off in 2025. Shares are up nearly 60% year to date, supported by strong financial results. Management is aiming to capture 10% of video game spending, and its track record of growth indicates the company is well on its way.

Video games are one of the largest, if not the largest, entertainment markets. Newzoo estimates annual spending across all gaming platforms is $180 billion, so Roblox believes it can reach $18 billion in annual revenue, up from its trailing-12-month revenue of $3.8 billion. In the first quarter, daily active users increased 26% year over year to 97.8 million. Revenue was up 29% to $1.0 billion. This momentum points to a big opportunity.

Roblox has a unique business model where the company invests in technology and services to support revenue growth, but its user community creates the games and other experiences on its platform. Roblox is on pace to pay out $1 billion in compensation to content creators this year, but it's still seeing healthy increases for key financial metrics like free cash flow. In the first quarter, free cash flow more than doubled over the year-ago quarter and reached $876 million on a trailing-12-month basis.

Total hours spent on the platform continue to position Roblox for growing monetization opportunities over the long term. Players logged 21.7 billion hours last quarter, up 30% year over year. Meanwhile, management is working to grow the advertising business, where it has a partnership with Alphabet's Google to offer video ads through the platform. Ads could drive even more engagement and revenue for the company too. For example, Roblox could offer players free access to premium experiences that are usually locked behind a paywall if they watch an ad.

In the video game industry, Roblox is one of the best picks for investors. It has a large and growing user base, engaging experiences, improving ad-tech capabilities, and growing free cash flow. This combination should make the stock a rewarding investment over the next decade and beyond.

2. MercadoLibre

MercadoLibre (NASDAQ: MELI) is a fast-growing fintech and e-commerce company operating in Latin America. The company is helping bring digital financial services to millions of people in the region that don't have access to basic services like bank accounts.

The company's revenue has grown from $652 million in 2015 to $22 billion on a trailing-12-month basis. That growth has fueled the stock's 1,700% gain over the last 10 years. Yet, even after surging to a new high this year, the stock is trading at a reasonable valuation (more on this later).

MercadoLibre offers a complete ecosystem of financial and e-commerce services. It generates revenue from its online marketplace, which has 67 million unique active buyers, in addition to advertising services, shipping, lending, payments, and credit. A new credit card offering is scaling quickly and could become a valuable tool to attract users to the online marketplace. Its credit portfolio grew 75% year over year last quarter.

What's clear is that MercadoLibre is solidifying itself as the leading option for key services in a region with 650 million people. The long-term opportunity is massive. Revenue grew 64% year over year in Q1 on a currency-neutral basis. The consistency of its growth over the last decade is remarkable and highlights just how much upside exists for the business.

The stock's price-to-sales ratio is currently at the lower end of its historical range. As recently as five years ago, MercadoLibre traded consistently above 15 times trailing revenue. But as of this writing, investors can buy shares at less than 6 times sales. At the rate MercadoLibre is still growing, this reasonable price point sets the stage for excellent long-term returns.

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

Before you buy stock in Roblox, 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 Roblox 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 Ballard has positions in MercadoLibre. The Motley Fool has positions in and recommends Alphabet, MercadoLibre, and Roblox. The Motley Fool has a disclosure policy.

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2 Artificial Intelligence (AI) Stocks to Buy and Hold for the Next 20 Years

Artificial intelligence (AI) is sweeping across every industry. Researcher IDC forecasts that AI will contribute a total of nearly $20 trillion to the global economy over the next five years. By 2045, AI could drive enormous returns for investors who invest in the right stocks.

Here are two stocks that could deliver tremendous returns over the next 20 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. Learn More »

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1. Nvidia

Nvidia's (NASDAQ: NVDA) dominance in the market for graphics processing units (GPU) -- vital hardware for handling AI workloads -- has placed it in a lucrative position. Even after its meteoric rise over the last few years, the chipmaker still has plenty of growth ahead.

Two years ago, on the company's fiscal Q4 2023 earnings call, CEO Jensen Huang stated, "I believe the number of AI infrastructures is going to grow all over the world." He expected to see more AI data centers built, and that Nvidia's chips, networking products, and software systems would help accelerate AI computing by a factor of 1 million times over the coming 10 years.

Nvidia's latest quarterly report shows that Huang's prediction is continuing to play out. In a quarter where its revenue grew 69% year-over-year, Nvidia saw accelerating deployments of AI-purposed data centers, aka AI factories. There are nearly 100 Nvidia-powered AI factories in progress right now -- twice as many as there were a year ago.

These specialized data centers are being built across every industry and geography. Nvidia is in a solid competitive position with its in-demand full-stack solutions that cover hardware, networking components, software, and systems. Its networking revenue alone jumped 64% over the previous quarter, reflecting a massive jump in demand for networking components to handle the massive growth in data processing and AI workloads that's happening now.

Industry estimates pointing to a $1 trillion data center opportunity could be underestimating the actual long-term opportunity for Nvidia. Nvidia has generated more than $148 billion in trailing 12-month revenue and its top line is still growing by more than 50% year over year. That trajectory for a company of this size indicates an enormous opportunity.

Nvidia is playing a vital role in meeting the demand for AI. While at some point there could be a slowdown in data center spending that saps Nvidia's momentum, the combination of its powerful GPUs and its popular networking and software solutions provides it with a wide competitive moat. The stock should continue to deliver long-term growth, as it has over the last quarter of a century.

2. Meta Platforms

Facebook and Instagram owner Meta Platforms (NASDAQ: META) could be a sleeper AI beneficiary over the long term. When AI ushers in time-saving services like fully autonomous robotaxis, people will have a lot more time to do other things, such as browsing social media. That's just one way AI could benefit Meta's business over the next 20 years that is not reflected in the stock's valuation.

Investors can get a hint of the impact that AI could have on Meta's business by looking at how much the company is investing in the technology. It is planning for capital expenditures of at least $64 billion in 2025, and those investments will go primarily toward data centers. (Investors should note that this rising spending on hardware is also ringing the cash register for Nvidia.)

Meta's high returns on capital show that it doesn't spend money like this unless management sees attractive returns down the road. The company is investing in AI for a number of initiatives, including new experiences to drive more useful and immersive experiences across its family of apps.

One of the ways it brings more useful content is by showing its users more relevant ads. Over the last few years, Meta has benefited from a growing digital ad market that has started to implement AI technology for improved ad targeting. Revenue grew 22% in 2024, and much of this momentum continued in Q1 2025, when revenue rose by 16% year over year.

Meta could also benefit from the launch of new devices powered by AI, such as its Meta AI glasses. More than 1 billion people wear glasses, and Meta believes that in the future, AI will be integrated into a large number of these glasses. So far, it seems to be tapping into a big opportunity, as sales of Meta's Ray-Ban AI glasses have tripled over the last year.

More than 3.4 billion people use Meta Platforms' apps every day. That's a huge built-in audience for it to leverage AI technology to grow the value of the business. Its current valuation of 27 times forward earnings estimates is a reasonable price, and leaves plenty of potential for the company's growth to drive healthy stock price gains over the long term.

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

Before you buy stock in Nvidia, 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 Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

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

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

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

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. John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.

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Wall Street Analysts Like These AI Stocks in 2025. Should You Buy Them?

In a year of uncertainty for the economy, leading companies in artificial intelligence (AI) are standing out. Wall Street analysts recently made bullish calls on Broadcom (NASDAQ: AVGO) and ServiceNow (NYSE: NOW).

One thing that stands out at first glance with these stocks is their expensive valuations. Both stocks trade at high multiples of their earnings and cash flow that could limit near-term upside. Let's see why these stocks may or may not justify their premiums.

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 »

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1. Broadcom

Broadcom supplies essential networking and other components for data centers. It benefits enormously from the investment pouring into AI infrastructure right now. After falling to a low of $146.29 this year, the stock has rebounded sharply in recent weeks to around $200, with the average Wall Street analyst still rating the stock a buy.

As AI workloads increase in the data center, it puts more stringent requirements on advanced computing hardware, particularly the need for high-speed data transfer. Broadcom is meeting this demand. Its revenue grew 25% year over year last quarter to nearly $15 billion, with AI-related revenue surging 77% to $4.1 billion.

Broadcom also supplies AI chip solutions for data centers, which are in high demand partly due to the short supply and high costs of Nvidia's graphics processing units (GPUs). Broadcom sees AI chip revenue reaching $4.4 billion in fiscal Q2.

It's for this reason that Seaport Research analyst Jay Goldberg recently rated Broadcom shares a buy, while recommending investors sell Nvidia. However, investors shouldn't overlook the stock's high valuation. Broadcom stock trades at 97 times trailing earnings and 30 times this year's earnings estimate. Broadcom's earnings multiple is toward the high end of its previous trading range, suggesting it might be overvalued. Even for a company expected to grow earnings at an annualized rate of 20% in the next few years, Broadcom is priced at a premium.

Most analysts are still bullish on Nvidia due to its recent momentum and competitive position in the GPU market. By comparison, the consensus analyst estimate still has Nvidia's earnings growing at an annual rate of 35% in the coming years, yet its shares trade at a more reasonable 25 times forward earnings.

The chip industry is historically cyclical and can experience periods of slower demand during economic recessions. With a lot of uncertainty for the economy this year, investors should be careful before paying a higher earnings multiple for Broadcom. It could face relatively more downside risk if the chip industry's growth stalls in the near term.

2. ServiceNow

ServiceNow could be a huge beneficiary of future spending on AI-powered software that helps companies speed up workflow. The Wall Street consensus is high on its prospects and rates the stock a buy.

ServiceNow sees the addressable market for its software reaching $275 billion by 2026. Subscription revenue grew 19% year over year in the first quarter, with remaining performance obligations up 25% to $22.1 billion.

Management is seeing strong demand from companies looking to increase efficiency. It sees a growing opportunity in the federal sector, as the U.S. government seeks more cost-efficient solutions in technology. Overall, ServiceNow AI products saw a significant acceleration in demand to start the year, and management's guidance calls for 2025 revenue to increase approximately 19% over last year.

Bank of America analyst Brad Sills noted the company's solid execution and strong demand for its workflow automation platform amid uncertainty in the economy. He rates the shares a buy and recently raised the firm's price target to $1,085.

ServiceNow stock is trading at a high valuation of 59 times forward earnings. But companies that generate recurring revenue from subscriptions generally trade at higher earnings multiples. On a free-cash-flow basis, ServiceNow shares trade at a multiple of 56, which is close to the middle of its previous five-year trading range.

This leading AI software provider seems to offer a more reasonable value for long-term investors. There's still downside risk if a soft economy leads to lower software spending. But analysts expect the company's earnings to grow nearly 30% annually in the coming years.

The recurring revenue business model along with a large market opportunity for its products is likely going to provide support for ServiceNow stock in the near term and set the stage for more returns in the coming years.

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

Before you buy stock in Broadcom, 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 Broadcom 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 $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $701,781!*

Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 164% 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 April 28, 2025

Bank of America is an advertising partner of Motley Fool Money. John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Bank of America, Nvidia, and ServiceNow. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

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These Growth Stocks Are Crushing the S&P 500 in 2025. Should You Buy Them?

After a strong run for the stock market the past two years, volatility has returned in 2025. But there are pockets of opportunity among top growth stocks. While the S&P 500 (SNPINDEX: ^GSPC) is down 8% at the time of writing, some companies that entered the year with strong momentum are holding up quite well.

Shares of Palantir Technologies (NASDAQ: PLTR) and Uber Technologies (NYSE: UBER) are two of the best performing stocks in the S&P 500 this year. Let's look at what is driving their share prices higher, and whether these top performers are still good investments.

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 »

1. Palantir Technologies

Leading businesses and governments are modernizing with artificial intelligence (AI). Palantir Technologies is one of the top providers of AI-powered data analytics software. The stock has had a phenomenal run, rising 1,500% since 2022. It has continued to perform well in 2025, up 33% as of April 23. But investors have to wonder if the stock has gotten too far ahead of the company's actual performance.

Palantir delivered accelerating revenue growth over the past year. In the fourth quarter, U.S. commercial revenue grew 64% year-over-year. Companies are choosing Palantir to improve efficiency and speed up decision making. For example, a leading telecommunications company recently signed a $40 million deal with Palantir, which will free up capital from using older technology and equipment.

Palantir also is playing a vital role in strengthening the U.S. military with cutting-edge technology. Its U.S. government revenue grew 45% year-over-year in Q4. Palantir developed its Tactical Intelligence Targeting Access Node (TITAN) for the U.S. Army that uses AI to improve strike targeting and accuracy on the battlefield.

These use cases indicate the level of sophistication of Palantir's AI capabilities, and that's why leading companies continue to sign multimillion-dollar deals. It's also benefiting the stock that the company is converting these growing revenues into a healthy profit. The company made $462 million in net profit on $2.9 billion of revenue last year.

The only negative with Palantir stock is the valuation. The shares trade at an astronomical 548 times earnings at the time of writing. At these lofty share prices, the stock could be overshooting the company's worth. While it's impossible to predict the timing, investors have to assume that this nosebleed valuation could lead to a downward correction in the share price. It might be best to wait for the stock to settle at a lower earnings multiple before starting an investment.

2. Uber Technologies

Investors shouldn't overlook the momentum happening in the global ride-hailing market. Uber Technologies has made substantial investments in its technology and service, and it is translating to strong growth. The stock climbed 200% since 2022 and 22% year to date through April 23, but its valuation could leave room for more gains over the next year and beyond.

Uber's growth suggests it is going after a huge opportunity in the transportation market. It offers multiple services tailored for healthcare, freight, and enterprise. It's also expanding into membership that offers special discounts on Uber Eats and rides and has already reached 30 million subscribers so far, up 60% year-over-year in the fourth quarter.

It's also investing in the future. The company has partnered with Google's Waymo self-driving car unit, in addition to China's WeRide. Its autonomous ride service recently launched in Austin, Texas, and is soon launching in Atlanta, Georgia. Overall, Uber currently has multiple partners working on autonomous ride and delivery services.

Uber benefits from a capital-light business model, where drivers maintain their own vehicles, which leaves a lucrative revenue stream coming from fees on every ride and delivery. Last year, Uber's operating profit more than doubled to $2.8 billion, and there seems to be more room for growth as the company improves margins.

Analysts expect Uber's earnings to grow at an annualized rate of 30% in the coming years, yet investors can buy shares for just 23 times 2025 earnings estimates. That's a fair multiple for an average growth stock, so investors should expect Uber shares to deliver satisfactory returns over the long term.

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

Before you buy stock in Palantir Technologies, consider this:

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

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% 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 April 21, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Ballard has positions in Uber Technologies. The Motley Fool has positions in and recommends Alphabet, Palantir Technologies, and Uber Technologies. The Motley Fool has a disclosure policy.

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2 Top Stocks You Can Buy Now With $500

Wall Street's concerns over tariffs and how President Donald Trump's trade wars will impact the U.S. economy have sent the Nasdaq Composite down by around 18% year to date, and it's off more than 20% from its peak. But if you have some extra cash available that you won't need to spend in the near term or use for other financial priorities like reducing debt, the market's current sell-off offers a great opportunity to invest.

Shares of the best companies in the world are trading at prices that may significantly undervalue their future growth. For less than $500, you can buy one share each of Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL). These are two of the strongest consumer brands, and both are in great positions to benefit from the growing use of artificial intelligence (AI).

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 »

1. Amazon

The first stock I would buy with $500 is the leading cloud service and online retail brand. The market sell-off has taken Amazon down to $166 per share at the time of this writing. Amazon generated record profits and cash flow last year, which last summer brought its price-to-free-cash-flow valuation down to the lowest level in over 15 years.

Since 2005, on a price-to-cash-from-operations basis, Amazon stock has traded at multiples ranging from 12 to 48. Today, it's trading at just 15, which is a steal of a price for investors, particularly considering that it doubled its cash from operations over the last five years.

The cloud infrastructure services market was worth $330 billion in 2024, and it's growing at a rate of more than 20% annually, according to Synergy Research. Amazon Web Services (AWS) is well positioned for long-term growth as spending on AI continues to grow. More than 1,000 generative AI applications have already been built using the tools available on AWS.

Amazon's AI revenue is growing at a triple-digit percentage annually. The operating profit from that segment of the business totaled nearly $40 billion in 2024, comprising 58% of the company's top line. AI is a once-in-a-generation opportunity, and it's a key growth driver for Amazon's business and share price.

Amazon could be one of the biggest beneficiaries of AI over the long term. It's an expensive technology in part because it must be powered and trained using high-end chips, the majority of which come from a single supplier (Nvidia), and demand for them is outpacing supply.

But Amazon is in the process of reducing the cost of AI for enterprise customers by investing in developing its own AI chips. As it becomes more cost-efficient to use AI supported by AWS, that could drive even more demand for the cloud service.

With a business that is producing a gusher of profits as AI takes off, Amazon is one of the best growth stocks to buy in the wake of the recent market correction.

2. Apple

Not long ago, Apple shares were trading at premium price-to-earnings multiples based on high expectations that the new AI features it was rolling out would boost sales of its newest iPhones and computers. However, the stock has fallen by 24% from its recent highs, bringing the share price under $200 for the first time in about a year. It's trading at a more reasonable earnings multiple, which should position those who buy it now for a rewarding result over the long term.

At its recent peak, the stock was trading over 35 times this year's earnings estimate. It is now trading at a more reasonable valuation of 26 times forward earnings. Trump's tariffs could increase iPhone prices and put pressure on sales -- the smartphone again accounted for more than half of Apple's total revenue last quarter -- but over the long term, the company's growth prospects look solid.

Apple Intelligence could drive more growth for the company. It has seen stronger sales of the iPhone 16 in markets where the AI offering is available, but it's early. Over the long term, Apple Intelligence will get smarter and could open up growth opportunities that are not reflected in the stock's current valuation.

The consumer tech giant has a massive installed base of more than 2.3 billion active devices. The iPhone is its most popular device, and it's a product customers carry with them everywhere they go. AI features can make these devices even stickier and drive more sales of services (e.g., apps and subscriptions) -- Apple's fastest-growing revenue opportunity.

Apple is generating huge profits, with $96 billion in trailing-12-month net income on $396 billion of revenue. There's no doubt it's going to benefit tremendously from Apple Intelligence.

Buying Apple shares at their recent prices should lead to solid returns over the next decade. Analysts' consensus estimate is that the company's earnings will grow by just over 10% annually. Given its opportunities to drive more sales by marketing its latest products with their new AI features, investors can be confident that the most valuable brand in the world will grow more valuable over time.

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

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

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

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $266,353!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $38,790!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $566,035!*

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

See the 3 stocks »

*Stock Advisor returns as of April 21, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Amazon, Apple, and Nvidia. The Motley Fool has a disclosure policy.

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Stock Market Sell-Off: 2 Growth Stocks to Buy Hand Over Fist

With the return of market volatility, anxiety levels are rising for retirement savers, but if you're not going to be tapping into your savings for many years, there's no reason to worry. Stock market dips are historically the best time to invest, because lower share prices allow you to gain more of a company's earnings, which leads to great returns when the markets recover.

To help you in your search for undervalued growth stocks, here are two excellent candidates.

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 »

1. Meta Platforms

Meta Platforms (NASDAQ: META) is coming off a year of strong growth as it continued to invest in artificial intelligence (AI) to bring more personalization to its social media platforms. The company is set for strong growth yet trades at a reasonable 24 times earnings.

Meta Platforms spends billions on technology every year to support the growth of its apps, and importantly, AI. More than 700 million monthly active users have tried its Meta AI assistant, and management expects that number to grow to 1 billion in 2025.

Meta AI is quickly scaling into one of the most used AI assistants. The growing adoption highlights the advantage the company has with more than 3.3 billion people using its services every day across Facebook, Instagram, WhatsApp, Messenger, and Threads.

This large user base drives substantial advertising revenues. Last year, Meta Platforms earned $62 billion of net income on $164 billion of revenue, with the top line growing 22%. Other than Meta AI, the company also offers professional AI tools that improve ad targeting across its family of apps, which is benefiting the business. Over the long term, Meta could discover new revenue streams from offering premium AI services that pads the company's bottom line.

Analysts expect Meta to deliver 16% annualized earnings growth in the coming years. While no one has a crystal ball for the stock in the near term, investors that buy shares today should see returns that roughly follow the underlying growth of the business from here.

2. The Trade Desk

The Trade Desk (NASDAQ: TTD) is a leading digital ad-buying platform that is benefiting from the growth in digital advertising -- a market valued at $800 billion and growing.

A small revenue miss compared to expectations last quarter sent the stock plummeting, but nothing has changed the company's competitive position or long-term opportunity, which means investors have a great opportunity to buy shares on the cheap.

Ad agencies and brands love The Trade Desk because it offers a wide range of ad inventory, and it offers the technology to make profitable ad-buying decisions. For example, its Kokai AI platform can quickly sort through millions of ad impressions every second to help advertisers find the right deal. Better pricing, targeting, and ad performance is helping The Trade Desk gain more clients.

The Trade Desk generates revenue by charging a fee of the total amount its customers spend on ads and other services. Revenue grew 26% to $2.4 billion in 2024, and the business earned a healthy profit margin of 16%.

Connected TV continues to be one of biggest opportunities, where The Trade Desk has valuable partnerships with Roku and Disney. The connected TV ad market is estimated to reach $46 billion by 2026, according to Statista, providing tremendous upside for the company.

Revenue is expected to grow 18% this year, yet the stock is trading at its lowest valuation in years. Analysts expect earnings to reach $3.89 by 2028, which makes the current share price of around $50 look like a bargain. Investors that take advantage of the sell-off are likely looking at handsome gains down the road.

Should you invest $1,000 in Meta Platforms right now?

Before you buy stock in Meta Platforms, 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 Meta Platforms 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 $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% 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 April 10, 2025

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. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Roku, The Trade Desk, and Walt Disney. The Motley Fool has a disclosure policy.

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2 Resilient Growth Stocks to Buy in April

Sudden drops in the stock market can leave investors with an uneasy feeling. While market crashes have happened several times over the last century, they all come to an end and prove to be the best times to buy stocks.

If you're looking for resilient growth stocks that could hold up better than most in this environment, while positioning you for long-term gains, here are two stocks to consider buying right now.

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1. Netflix

Shares of Netflix (NASDAQ: NFLX) soared last year and are significantly outperforming the S&P 500 year to date. Its focus on delivering affordable digital entertainment should make it a resilient investment for 2025 and beyond.

Netflix has a strong upcoming content slate that serves as a catalyst for subscriber growth. Returning hits like Squid Game, Stranger Things, and Wednesday should attract millions of viewers. Plus, Netflix's push into live events is proving to be a game changer. The livestreams of two NFL games on Christmas Day led to an average minute audience surpassing 30 million, which indicates a promising opportunity for Netflix to widen its appeal.

Paid memberships grew 15.9% year over year in the fourth quarter, crossing 300 million for the first time. A combination of live events and demand for the cheaper ad-supported subscription tier contributed to strong growth in the quarter.

The ad-tier plan is another catalyst that should deliver profitable growth for Netflix this year. Management's guidance calls for ad revenue to double in 2025, which should bolster the company's earnings.

Analysts expect Netflix's earnings to grow at an annualized rate of 24% in the coming years. The stock could fall in the near term, but a strong content lineup could help it perform relatively well. Long term, Netflix's momentum in signing up subscribers indicates it is nowhere near its ceiling.

2. Take-Two Interactive

Take-Two Interactive (NASDAQ: TTWO) makes some of the best-selling video games in the $400 billion video game industry. The stock rocketed to new highs earlier this year and is outperforming the S&P 500 year to date. It has a strong release slate for 2025 that should lead to record revenue and potentially higher share prices over the next year.

Take-Two's catalog of titles across consoles, PC, and mobile platforms generates more than $5 billion in annual revenue. This year, it is releasing new titles from some of its most popular franchises. The most highly anticipated title is Grand Theft Auto VI. All the previous releases in the Grand Theft Auto series have sold a cumulative 440 million copies, with the most recent version comprising nearly half of those sales.

Grand Theft Auto gets more popular with every release, which is why management expects this to be a record year for the company. Analysts are currently projecting Take-Two to haul in $8.2 billion in adjusted revenue for fiscal 2026 (ending in March). This would represent an increase of approximately 46% over expected fiscal 2025 revenue.

While video game sales are not immune to a recession, spending on entertainment is generally more resilient than it is in other industries. Like Netflix, Take-Two's upcoming release schedule should go a long way to mitigate weak consumer spending. Assuming Take-Two delivers on analysts' estimates, it would cement the company's position as a leader in the video game industry.

Grand Theft Auto VI will be monetized for years to come with content updates, similar to how a lot of video games make money these days. Analysts expect Take-Two's earnings per share to reach $9.24 in fiscal 2027, representing a significant jump over the last few years. With the stock currently trading at $195, the shares have the potential to deliver market-beating gains in 2025 and beyond.

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 $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% 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 April 10, 2025

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Take-Two Interactive Software. The Motley Fool has a disclosure policy.

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Stock Market Sell-Off: The Best Warren Buffett Stocks to Buy Now

Warren Buffett has built a fortune in the stock market by playing the long game. Over the last 59 years, his investing skills guided Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to an incredible return of more than 5,000,000%.

When the stock market falls, Buffett's top holdings are a great place to find quality stocks that you can be confident will bounce back. Here are two of his largest investments that are no-brainer buys right now.

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 »

1. Apple

Apple (NASDAQ: AAPL) is Berkshire Hathaway's largest investment, with 300 million shares at the end of 2024. The iPhone maker is ranked as the most valuable brand in the world by Brand Finance. The company's robust profits earned from its products, on top of growing revenue from services, make it a solid investment for the long term.

Apple is poised to see more growth as it releases Apple Intelligence across more countries. It just rolled out these artificial intelligence (AI) features to iPhone and iPad users in Europe. In the last earnings report, CEO Tim Cook noted that iPhone 16 performance has been stronger in markets where Apple Intelligence is available.

That feature is a strong catalyst for growth. It promises to drive more upgrades and potentially convert customers of rival brands to switch to the iPhone, especially as Apple continues to improve its capabilities. The active installed base of its devices continues to hit record highs, which indicates growing brand appeal.

More devices in people's hands spell more opportunities to increase Apple's lucrative services segment. That division's revenue grew 14% year over year in the December-ending quarter and now comprises 21% of the company's total.

Buffett recognizes that Apple has tremendous brand power, which it uses to generate high margins from product sales. The company ended the last quarter with $141 billion of cash and marketable securities. It produced $96 billion of net profit over the last year and returned more than $15 billion to shareholders in dividends. It is printing cash like there's no tomorrow.

While Apple is not a high-growth business, it can raise the value of your investment. Analysts expect earnings to increase at an annualized rate of 10% over the next several years. A powerful brand and loyal customer base make it a solid long-term holding.

2. Berkshire Hathaway

Buffett's masterpiece is one of the best stocks you can hold in your retirement account. He continues to be the largest shareholder, with 38% of the Class A shares.

Berkshire owns dozens of businesses, along with a stock portfolio that was worth $271 billion at the end of 2024. The conglomerate's shares have run circles around the S&P 500 over the last five years, up 161% compared to the index's return of 88% at the time of this writing.

The stock has continued to outperform the broader market year to date. Most investors realize that a market sell-off can be valuable for Buffett to find opportunities to put more cash to work at attractive valuations, and therefore add more profitable revenue streams for Berkshire's business.

It entered the year with $331 billion in cash and short-term investments, providing plenty of firepower for Buffett to use if an opportunity presents itself. Berkshire's cash and stock holdings represent close to half of its $1.1 trillion market cap, which indicates solid value underpinning the stock right now.

That value is further supported by $47 billion of operating earnings from Berkshire's businesses last year. These include the Burlington Northern Santa Fe railroad; See's Candies; GEICO; Duracell; and one of the largest energy companies in the U.S., Berkshire Hathaway Energy. Total operating earnings are up 72% over the last three years.

Berkshire Hathaway is a no-brainer investment. Its growing earnings and large stakes in Apple, American Express, Coca-Cola, and several other outstanding businesses appear undervalued right now, making the stock a great buy.

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 $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% 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 April 10, 2025

American Express is an advertising partner of Motley Fool Money. John Ballard 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.

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Got $3,000? 2 Artificial Intelligence (AI) Stocks to Buy and Hold for the Long Term

It's hard to watch the value of your investments falter in a short period, but everyone is in the same boat. The good news is that market declines are historically excellent buying opportunities. Markets can fall but they inevitably hit bottom and skyrocket back to new highs over time, providing handsome gains for investors who ride through the volatility.

If you've got $3,000 you don't need for other life priorities like reducing debt, this is a great opportunity to invest in competitively positioned companies at better prices. The technology sector will continue to churn out monster winners over the long term. Spending on artificial intelligence (AI) is expected to reach $1.1 trillion by 2031, according to Statista. Here are two stocks to profit off this trend over the long term.

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 »

1. Nvidia

Nvidia (NASDAQ: NVDA) is enabling the rapid adoption of AI. Its graphics processing units (GPUs) are used in everything from playing video games to powering the largest data centers, where the AI magic happens. It has led the GPU market for many years and continues to dominate, making it one of the best AI stocks to consider holding for the long term.

CEO Jensen Huang will go down as one of the great business leaders of the 21st century. He started Nvidia over 30 years ago and instilled a corporate culture that constantly looks for new opportunities. This is how Nvidia adapted its GPU technology from running video games to powering entire computing systems for training large language AI models.

Nvidia's share of the AI chip market is estimated to be over 80%. It is seeing growing demand from several markets. Leading cloud service providers make up about half of its data center revenue. Nvidia also expects revenue for its autonomous vehicle solutions to reach $5 billion this year. Leaders in healthcare like Mayo Clinic and Illumina are using Nvidia's technology to speed up drug development and AI-powered health services.

Competition will intensify, as other semiconductor companies and cloud leaders are making their own custom AI chips. But Nvidia is a good bet for the long term based on its pace of innovation. In addition to chip hardware, Nvidia also offers software tools like CUDA and TensorRT, which help customers get the most out of Nvidia's GPUs for a given task. Nvidia offers everything needed to build a data center for the AI era.

Nvidia is strong financially. It earned $73 billion in net income on $130 billion of revenue last year. The company has $35 billion of net cash sitting in the bank. These resources are enabling it to continue innovating to meet growing demand for advanced computing systems.

With Nvidia seeing demand across multiple markets like healthcare and automotive, the stock is a good buy on the dip and should continue to reward long-term investors.

2. Snowflake

Snowflake (NYSE: SNOW) is a leading cloud-based platform that helps companies gather valuable insights from their data. Its data management services are offered through the leading cloud services, including Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud, and it is starting to see strong adoption for AI offerings.

Its cloud-agnostic position is an advantage. Companies can use Snowflake's data services across multiple clouds, which enables more collaboration and positions the business to capture market share as demand for AI software increases. Over 4,000 customers are now using Snowflake's AI and machine learning tools on a weekly basis.

The stock's recent decline sets up a great buying opportunity. Snowflake continues to report strong revenue growth and sees existing customers spending more on its services. This is noted by a 28% year-over-year increase in product revenue last quarter, with a 126% net revenue retention rate. Snowflake now has 580 customers generating more than $1 million in product revenue, up from 461 a year ago.

Competition is tight in the cloud market, but a key sales pitch for Snowflake's services is cost savings. Management said on its last earnings call that it is seeing more customers save over 50% by moving their data from other providers to Snowflake.

AI adoption is pushing more companies to find cost-effective ways to use AI with their data so they don't get left behind. This is a huge opportunity for Snowflake. The market for enterprise infrastructure software is expected to double from 2023 levels to reach $342 billion by 2028, according to Gartner.

Snowflake is not profitable on a net income basis, but it generated $884 million of free cash flow on $3.4 billion of product revenue last year. The company's growth on top of a lower share price has brought its price-to-sales multiple down to 12, which is reasonable for a fast-growing cloud leader and should set the stage for attractive long-term gains.

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

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

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

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $244,570!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $35,715!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $461,558!*

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

Continue »

*Stock Advisor returns as of April 5, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia, and Snowflake. The Motley Fool recommends Gartner and Illumina and 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.

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