Key Points

• Netflix’s strong fundamentals have helped the stock soar in the past several years.

• The company dominates the streaming industry with over 300 million subscribers.

• There's a good chance that Netflix’s lofty P/E ratio will come down by 2030.

• 10 stocks we like better than Netflix ›

Netflix (NASDAQ: NFLX) has fast-forwarded investor returns. In the past five years, the global media pioneer's share price has soared 150% as of this writing. Ongoing subscriber, revenue, and operating profit growth have been the key ingredients for this perennial winner.

But where will this top streaming stock be in five 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 »

Higher stock price

Netflix continues to fire on all cylinders. During the second quarter (ended June 30), the company reported 15.9% year-over-year revenue growth. Even better, free cash flow jumped 86.9%. Netflix is an extremely profitable enterprise these days, something many bears believed would never happen due to the company's massive content budget.

The business dominates the streaming landscape. According to Nielsen data, 8.8% of all U.S. TV viewing time in July happened on Netflix. The only other streaming platform with a greater share is YouTube, which isn't a an apples-to-apples comparison due to its user-generated content.

There's no reason to believe that Netflix's fundamentals will weaken anytime soon. In 2030, revenue and earnings should be higher than they are today. That supports a rising stock price.

Beating the market

Netflix shares should be higher five years from now, but more importantly, will the stock be able to beat the market between now and 2030? That's a different story.

Valuation is the main concern I have. Shares trade at a price-to-earnings (P/E) ratio of 51.7. The bulls will argue that Netflix's monster success warrants the premium valuation. However, the company's growth going forward isn't going to resemble the past. There's a good chance the P/E multiple will contract over the next five years as the business continues to mature, offsetting some of the stock's gains in that time.

Netflix has been a market-beating stock in the past, but looking ahead to 2030, it wouldn't surprise me if the stock lags the S&P 500.

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 $649,657!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,993!*

Now, it’s worth noting Stock Advisor’s total average return is 1,057% — a market-crushing outperformance compared to 185% 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 18, 2025

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

Key Points

• American Express stock would need to register an unbelievable 38% annualized gain throughout the rest of the decade.

• Management believes the business can put up mid-teens earnings-per-share growth over the long term.

• The stock is currently expensive, but this is a high-quality company.

• 10 stocks we like better than American Express ›

American Express (NYSE: AXP) is a dominant force in the credit card industry, with premium offerings that support its brand recognition. It also runs a closed-loop payments platform, allowing it to benefit from a network effect. Warren Buffett certainly likes the business, as Berkshire Hathaway owns 21.8% of the outstanding shares.

But can this financial stock turn a $10,000 investment into $50,000 by 2030? Here's what investors need to know.

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 »

Soaring throughout the rest of the decade

If American Express shares soared fivefold over the next five years, investors would register a fantastic 38% annualized return. That gain would certainly outperform the broader market.

However, it's best to temper expectations. With the utmost confidence, I can say that American Express stock won't turn a $10,000 investment into $50,000 by 2030. In the past five years, shares have generated a total return of 237%, which is still great, but well short of 400%.

This is an established business that won't put up monster growth anymore. Management expects earnings per share to increase at a mid-teens percentage pace over the long term.

Extend the time horizon for American Express

While betting on American Express shares to rise fivefold in five years is a losing proposition, all hope isn't lost. Investors who can lengthen their time horizon might see that kind of gain from this stock. I wouldn't be surprised to see a 400% return over a 15- or 20-year period, for instance.

The stock isn't cheap, though. Prospective buyers must be OK with paying a historically expensive price-to-earnings ratio of 21.6 to add American Express to their portfolios. This introduces a headwind to achieving even better returns.

This is an outstanding company. It's a strong brand, benefits from a network effect, and has the Oracle of Omaha's endorsement. It at least deserves a spot on the watch list for now.

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 $649,657!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,993!*

Now, it’s worth noting Stock Advisor’s total average return is 1,057% — a market-crushing outperformance compared to 185% 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 18, 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 Berkshire Hathaway. The Motley Fool has a disclosure policy.

Key Points

• SoFi continues to grow at a rapid clip, as customers flock to the digital-only platform.

• If trends continue, revenue is set to be markedly higher years from now.

• Management is focused on expanding its offerings, with two crypto-related launches coming soon.

• 10 stocks we like better than SoFi Technologies ›

Shares of SoFi Technologies (NASDAQ: SOFI) have been ripping higher. In the past 12 months, they have skyrocketed 198% (as of Aug. 20). Strong financial performance is driving greater excitement from the investment community.

That type of return in such a short period is hard to ignore. But there's one other reason every investor should know about this fintech stock.

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 »

Disrupting the financial services industry

The financial services industry is massive, with large banks commanding a strong position. However, SoFi is becoming a highly regarded brand. And the company's huge growth is one reason investors need to pay attention.

As of June 30, SoFi had 11.7 million customers on its platform. That figure was up 34% year over year. And it's more than 10 times bigger than the total at the end of 2019. People are clearly finding tremendous value in SoFi's digital-only and user-friendly offerings.

More customers, unsurprisingly, leads to more revenue. The top line grew by 43% in Q2. And according to Wall Street consensus analyst estimates, revenue should rise 31% in 2025, before increasing by 22% in 2026 and 20% in 2027.

Breaking into the top 10

"It's a matter of when, not if, we become a top 10 financial institution," CEO Anthony Noto said in an interview two years ago. He clearly has his sights set on a lofty goal for SoFi over the long term.

The company is doing the right things to keep the growth engine roaring, specifically when it comes to expanding its offerings. For instance, SoFi is re-introducing cryptocurrency trading. And it plans to launch an international money-transfer service that leverages Bitcoin's (CRYPTO: BTC) lightning network for faster and cheaper transactions.

With a relentless focus on serving the various needs of its customers, SoFi has many years of strong growth ahead.

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

Before you buy stock in SoFi Technologies, consider this:

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

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $649,657!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,993!*

Now, it’s worth noting Stock Advisor’s total average return is 1,057% — a market-crushing outperformance compared to 185% 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 18, 2025

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

Key Points

• Visa should continue to grow thanks to the declining use of cash and economic expansion.

• With ubiquitous adoption across the globe, Visa’s network effect is virtually impossible to disrupt.

• It's a popular stock these days, and its current valuation doesn’t present a bargain opportunity.

• 10 stocks we like better than Visa ›

Visa (NYSE: V) is one of the largest companies on Earth. It carries a massive market capitalization of $660 billion, and its role in the economy can't be overstated.

The company helps support the safe, secure, and convenient movement of money between various parties across the globe. Just last quarter (Q3 2025, ended June 30), Visa handled a whopping $4.2 trillion in payment volume, showcasing its impressive scale.

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 »

Shares have fallen 8% off their all-time high (as of Aug. 18). Investors might be thinking about buying the dip, but before making a move, here are three must-know facts you can't ignore when it comes to this top financial stock.

1. Visa's growth drivers

In the past decade, Visa's revenue has increased at a compound annual growth rate of 11.3%. According to Wall Street analyst expectations, the top line will grow at a yearly clip of 10.5% between 2024 and 2027. Looking beyond that forecast period, I wouldn't be surprised if the business continues the same level of gains for many years.

Visa is positioned to benefit from some long-lasting trends. The first is the rising penetration of digital and cashless transactions. The U.S. might be a developed economy, but 52% of Americans will go completely cashless in 2025, according to Capital One Shopping Research. There's still so much room for card payments to proliferate, which means the opportunity in less developed emerging markets is much bigger.

Another growth driver is general economic expansion. As countries increase their gross domestic product (GDP), consumers and businesses will spend more money. This activity helps Visa handle more payment volume, which leads to greater revenue.

During the latest fiscal quarter, Visa raked in $2.8 billion (or 27%) in revenue from add-on services, like risk and identify solutions and advisory services. What's more, the business is pressing the gas pedal on innovation, working on things within artificial intelligence (AI) and stablecoins. There could be growth potential in these areas.

2. Visa's formidable competitive position

At a high level, Visa connects merchants, consumers, and financial institutions to help facilitate the flow of money. Consequently, the company has developed an extremely powerful network effect. This underpins its competitive position.

There are 4.8 billion Visa cards in use out in the world. On the other side, there are more than 150 million merchant locations that accept them as a form of payment. So many people have Visa cards because so many merchants accept them, with the opposite also being true. It's a system that gets stronger as it grows, and it's very difficult for anyone to disrupt.

A potential challenger would need to build the underlying technical infrastructure, while also convincing banks to lend with its credit cards. This is an impossible task because there aren't any merchants that use this new entrant's system yet. The problem arises from trying to bring on stakeholders when there's no value being offered.

3. Is the stock cheap?

Most would agree that Visa is a great company. Its durable growth, network effect, and incredible profitability (with a Q3 net profit margin of 52%) resemble a business that investors should want in their portfolios.

However, investing in the company right now might not provide a clear margin of safety. As of Aug. 18, the stock traded at a price-to-earnings (P/E) ratio of 33.5. On the one hand, that metric is below the five-year trailing average. But on the other hand, Visa shares have underperformed the S&P 500 since August 2020. The best decision, in my view, is probably to wait for a pullback.

There might still be investors who are interested in owning this business, regardless of the valuation. Maybe a dollar-cost averaging strategy makes sense. But you're now familiar with Visa's growth drivers, its network effect, and the stock's valuation. Knowing this info will support a better decision-making process.

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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 18, 2025

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

Key Points

• Mastercard stock has climbed at a better pace in recent years than the overall market.

• Impressive revenue and earnings growth continue to define the company’s fundamentals.

• Investors will want to think critically if they’re considering buying the stock today.

• 10 stocks we like better than Mastercard ›

Mastercard (NYSE: MA) is a behemoth in the payments industry. The company helps facilitate commerce across the globe. In the latest quarter (Q2 2025 ended June 30), it handled a whopping $2.6 trillion in volume and processed 43.5 billion transactions. These key figures demonstrate Mastercard's scale.

The business has done a good job taking care of its shareholders, even in recent times. If you invested $10,000 in this financial stock exactly three years ago, here's how much money you'd have 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 »

A winning investment

In the past three years, shares of Mastercard have generated a total return of 68% (as of Aug. 20). This means that a $10,000 investment would be worth $16,800 right now. That's a superb gain for a 36-month period of time, translating to a compound annual return of 18.9%. This gain makes the business a better performer during those three years than the overall S&P 500 index.

The stock's gain can be partly attributed to the company's underlying performance. Between the second quarter of 2022 and the most recent quarter, revenue increased by 47%. Diluted earnings per share climbed by an even better 74% during that time. Strong fundamental gains can help drive the share price higher.

Valuation concerns

Investors might be inclined to buy Mastercard stock after seeing how well it did in the past. While this is a wonderful business with an impressive track record of revenue and profit growth, the current valuation does look stretched. This unfavorable setup can limit upside going forward.

For those who want to buy the stock, you must be comfortable paying a price-to-earnings ratio of 39.5. That's an expensive valuation, so maybe it's best for investors to wait for a pullback before choosing to add Mastercard to their portfolio.

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

Before you buy stock in Mastercard, 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 Mastercard 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 $654,624!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,075,117!*

Now, it’s worth noting Stock Advisor’s total average return is 1,049% — 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 August 18, 2025

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

Key Points

• With billions of users across its very popular internet platforms, this business has developed durable competitive advantages.

• The management team is fully focused on AI, with growing financial investments supporting this strategy.

• Investors will be pleased to know that shares trade at a below-market valuation multiple.

• 10 stocks we like better than Alphabet ›

The best investors know that high-quality companies should be owned for the long haul. That typically means it's a smart idea to have a time horizon that spans several years, as opposed to trying to figure out what to do with your money over the next few weeks or months. A long-term outlook allows compounding to work its magic, which helps generate wealth.

With that perspective in mind, investors can look at historical winners to find potential future opportunities. Here's one monster stock investors should buy and hold for the next five years. Its shares have climbed a jaw-dropping 499% just in the past decade (as of Aug. 15).

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 »

Dominating the internet

The stock investors should buy and hold for five years is Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). This dominant internet enterprise owns Google Search, YouTube, Waymo, Chrome, Android, Google Cloud, and many other properties. It has billions of users and raked in $96 billion in revenue in the second quarter.

Thanks to all of its popular products and services, Alphabet has multiple sustainable competitive advantages that make up its wide economic moat. It's able to collect vast amounts of data that help improve the quality of its offerings. Network effects underpin platforms like Search and YouTube, with more users and usage leading to a better experience over time. And the Google brand is extremely powerful.

There are cost advantages at play. For instance, Google Cloud is able to leverage its investments in expensive infrastructure as it scales up revenue, leading to improving profitability. And this segment benefits from switching costs, as customers develop workflows and integrations that make it difficult to leave.

AI at the forefront

Alphabet is already a leader in artificial intelligence (AI). While investors still seem worried about AI's impact on the search business, it's worth mentioning that the AI Overviews feature now has 2 billion monthly active users. This search capability is also monetizing at the same rate as traditional search. The business also develops its own AI models under the Gemini name. And it makes its own AI chips called Tensor Processing Units.

Alphabet can only invest aggressively in AI initiatives because of its financial strength. Other companies wish they were so fortunate. Last quarter, the business generated $28 billion in net income, translating to a net margin of 29%. And as of June 30, Alphabet had $95 billion of cash, cash equivalents, and marketable securities on the balance sheet, substantially more than the $24 billion of long-term debt it carried.

This allows the leadership team to spend like there's no tomorrow. Alphabet now plans to have $85 billion in capital expenditures this year, up from a prior target of $75 billion just three months ago. That figure is expected to increase in 2026.

Past and future winner

Just in the last five years, shares of Alphabet are up 174%. That gain was propelled by diluted earnings per share (EPS) that soared between Q2 2020 and Q2 2025. While I don't believe investors should expect a similar share price gain between now and 2030, this still looks like a great buying opportunity.

The stock trades at a price-to-earnings ratio of 22. Not only does this multiple make Alphabet the cheapest of all the "Magnificent Seven" positions, but it's also a meaningful discount to the overall S&P 500 index. I think the company should be able to post double-digit EPS growth for the foreseeable future, with added upside from a valuation perspective.

Investors shouldn't hesitate to scoop up shares of Alphabet today. It wouldn't be surprising to see this monster stock double over the next five years.

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

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

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,106,071!*

Now, it’s worth noting Stock Advisor’s total average return is 1,070% — a market-crushing outperformance compared to 184% 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 13, 2025

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

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.

• 10 stocks we like better than Invesco QQQ Trust ›

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.

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!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 182% 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 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.

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.

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

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 »

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.

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.

• 10 stocks we like better than Apple ›

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?

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.

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.

• 10 stocks we like better than Bitcoin ›

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?

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.

Key Points

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

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

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

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

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

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

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

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

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.

Key Points

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

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

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

• 10 stocks we like better than Netflix ›

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

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

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.

Creating a flywheel

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

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

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

Financial implications

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

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

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

Netflix is doing just fine

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

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

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

Before you buy stock in Netflix, consider this:

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

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

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

See the 10 stocks »

*Stock Advisor returns as of July 21, 2025

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

Key Points

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

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

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

• 10 stocks we like better than American Express ›

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

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

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?

Holding a strong position in the credit card industry

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

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

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

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

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

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

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

Why investors should tread with caution

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

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

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

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

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

Before you buy stock in American Express, consider this:

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

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

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

See the 10 stocks »

*Stock Advisor returns as of July 21, 2025

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

Key Points

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

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

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

• 10 stocks we like better than Visa ›

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

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

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

Here's one reason investors should buy Visa.

Visa's unassailable competitive position

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

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

The threat of stablecoins

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

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

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

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

Before you buy stock in Visa, consider this:

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

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

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

See the 10 stocks »

*Stock Advisor returns as of July 21, 2025

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

Key Points

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

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

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

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

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

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

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

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

Tracking the S&P 500

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

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

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

Impressive performance at a low cost

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

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

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

Time in the market matters

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

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

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

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

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

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

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

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

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

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

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

Key Points

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

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

• Investors shouldn't blindly follow Buffett.

• 10 stocks we like better than Apple ›

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

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

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

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

Passing Buffett's filter is a valuable endorsement

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

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

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

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

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

Is Apple stock a buy now?

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

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

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

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

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

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

Before you buy stock in Apple, consider this:

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

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

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

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

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

Key Points

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

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

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

• 10 stocks we like better than Shiba Inu ›

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

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

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

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

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.

Key Points

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

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

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

• 10 stocks we like better than Bitcoin ›

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

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

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

See the present clearly

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

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

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

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

Scarcity drives demand

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

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

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

Getting to $1 million

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

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

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

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

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

Before you buy stock in Bitcoin, consider this:

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

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

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

See the 10 stocks »

*Stock Advisor returns as of July 7, 2025

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

Key Points

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

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

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

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

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

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

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.

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

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

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

SoFi continues to innovate

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

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

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

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

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

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

SoFi is poised to be a huge winner

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

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

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

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

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

Before you buy stock in SoFi Technologies, consider this:

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

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

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

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

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