Breaking Down Barriers: Why $300 Can Be the Perfect Amount to Invest in the Stock Market
In today’s investment landscape, online brokers have eliminated many barriers that once kept retail investors on the sidelines. With minimal deposit requirements and commission fees, virtually any amount of money can be invested in the stock market. For instance, $300 can be a great starting point for everyday investors.
While it might be tempting to invest $300 in a popular stock like Nvidia, there are three unstoppable stocks that make for smarter buys right now. Despite Nvidia’s dominance in artificial intelligence and graphics processing units, there are concerns about the company’s stock peaking and underperforming in the years to come.
One major concern is the potential for an early innings bubble-bursting event, where investors overestimate the adoption and utility of new technologies. Additionally, increasing competition from other chipmakers and internal competition from Nvidia’s top customers could limit future orders for the company’s hardware. Insiders have also not been buying shares, and the company’s valuation is relatively high.
Instead, consider investing $300 in the following three unstoppable stocks:
First, leading payment processor Visa has the tools to deliver superior returns to Nvidia in the coming years. Visa benefits from the non-linearity of the economic cycle, enjoying lengthy growth periods and being well-protected from downturns due to its purposeful avoidance of lending. The company also has an incredible opportunity in overseas markets, with sustained double-digit growth in cross-border payment volume.
Second, media goliath Walt Disney is shining once more after being severely impacted by the COVID-19 pandemic. Disney’s operating model is unique and can’t be duplicated, ensuring predictable cash flow from its multiple operating segments. The company’s progress with its direct-to-consumer segment is also promising, with subscription prices increasing and the segment moving to profitability ahead of schedule.
Lastly, small-cap adtech company PubMatic is perfectly positioned to take advantage of the rise of digital advertising. The company’s decision to design and develop its own cloud-based programmatic ad platform should result in a higher operating margin as it scales its revenue. PubMatic is also focused on the fastest-growing aspects of the advertising arena, including mobile, video, and connected TV.
These three unstoppable stocks offer a smarter investment opportunity than Nvidia, with the potential for superior returns in the coming years.
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