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Best stocks to invest $1,000 in right now

Find out which two megacap stocks are worth considering.

There are many ways to make money in the stock market.

One method favored by money managers for centuries is to look for businesses with: lack what — That is, competitors.

Although it’s difficult to find pure monopolies (and usually illegal, for obvious reasons), investors can find companies that have carved out a significant niche (sometimes a very large niche).

So today we’ll look at two companies that have found large and profitable niche markets.

A person staring at a smartphone.

Image source: Getty Images.

meta platform

first consolation is meta platform (meta 2.28%). The stock price is $462. At the time of this writing, person with If you invest $1,000, you can allocate roughly half of your money to: purchase A week on Metaplatform.

Here’s why this seems like a smart move. to me. Because the company operates the largest social media network, it generates enormous revenue, profits, and free cash flow.

The company’s platforms include Facebook, Instagram, WhatsApp, etc. Facebook messenger. each Among these platforms finished 10 billion Monthly Active Users (MAU); It’s all about Facebook 3 billion.

Statistics: Most popular social networks in the world as of April 2024 (by monthly active users in millions) |  Startista
Image source: Statista

Because it has so many active users, Meta can sell targeted advertising to marketers. around the world. And the advertising revenue is really It piles up.

In the most recent quarter (three months ending March 31, 2024), Meta recorded $36.5 billion in revenue, almost all of which came from advertising.

In summary, Meta has taken a huge chunk of the social media market (and the related digital advertising market), making the company a veritable cash cow. That said, Meta has become a smart choice for those looking to invest their money to work in the stock market.

microsoft

second stock Those investors If you have $1,000, here’s what to consider: microsoft (MSFT -0.39%). As of this writing, the price of a single Microsoft stock is $412. yet That might be a special priceConsidering Microsoft’s enormous assets.

Let’s start with the obvious. Microsoft is the world’s largest company by market capitalization. on 3 trillion dollars. The company has several business segments, range From gaming to cloud computing to personal and business software. Additionally, the company’s advertising division is a hidden gem, generating approximately $12 billion in annual revenue.

Sankey chart showing Microsoft's fiscal 2024 second quarter revenue and earnings.

Image source: The Motley Fool.

Microsoft is also at the cutting edge of one of the most exciting technological developments today: artificial intelligence (AI). Microsoft is leveraging its long-standing partnership with ChatGPT maker OpenAI to introduce new AI-based features to its legendary software suite. The company also monetized these features, selling them as software add-ons instead of charging a monthly fee.

Microsoft has competitors, but only a few can match the company’s sheer scale, and even fewer can compete in every area. Simply put, Microsoft remains a huge company for investors to consider when putting money into the stock market.

Randi Zuckerberg, a former director of market development, Facebook spokesperson and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Jake Lerch has no positions in any of the stocks mentioned. The Motley Fool holds positions in and recommends Meta Platforms and Microsoft. The Motley Fool recommends the following options: Buy Microsoft’s January 2026 $395 call and sell Microsoft’s January 2026 $405 call. The Motley Fool has a disclosure policy.

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