The Best Stocks to Invest $50,000 in Right Now

Source The Motley Fool

You can buy a lot of wonderful things with $50,000 -- a car, a boat, even the trip of a lifetime.

However, it's unlikely that any of those wonderful things will earn you a return. An investment portfolio, on the other hand, can pay you back -- and then some.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

With that in mind, let's imagine how to build a hypothetical portfolio with $50,000 -- using three of my favorite growth stocks. Here's what it would look like.

A jar full of $100 bills on a wooden table.

Image source: Getty Images.

1. Meta Platforms

To get things started, I'm allocating $20,000, or 40%, of my hypothetical portfolio to Meta Platforms (NASDAQ: META).

Here's why I'm choosing Meta: It's got a fantastic business model built around its incredible user base. The company boasts more than 3.3 billion daily active users (DAUs) across its platforms including Facebook and Instagram. Consequently, the company generates about half a billion dollars every single day in revenue -- mostly from ad sales.

As long as those users keep coming back to check their feeds, Meta will keep racking up ad sales, and plenty of profit, too. In the company's most recent quarter (for the three months ending on Dec. 31, 2024), Meta generated $48 billion in revenue and converted $21 billion into profit (specifically net income).

Not only is this business model massively profitable, but Meta's top-line sales are growing like a weed. Over the last five years, quarterly revenue growth has averaged almost 20% -- staggering growth for a company of its size.

In short, Meta is an excellent stock to own, which is why it's the first name I'm adding to my hypothetical $50,000 portfolio.

2. Robinhood

Next up is Robinhood Markets (NASDAQ: HOOD).

I'm allocating $5,000, or 10%, of my portfolio to Robinhood, based on a simple thesis.

It's called the great wealth transfer. In short, in the next 25 years, tens of trillions of dollars -- perhaps more than $100 trillion -- will pass from the baby boom generation to their heirs.

As this occurs, there will be an opportunity for brokerage firms like Robinhood. Thanks to its appeal among younger investors, Robinhood will be hoping to increase its overall customer base and revenue.

The company's early results already look promising. Revenue has increased to $3 billion, up from $1.3 billion just two years ago. In addition, the company reported its highest-ever profit last year, recording $1.4 billion in net income, as opposed to a loss of $2.6 billion in 2022.

HOOD Revenue (TTM) Chart

HOOD Revenue (TTM) data by YCharts

Finally, Robinhood is also branching to areas beyond the traditional territory of brokerage firms. The company has begun to offer prediction contracts, which allow customers to wager on the outcome of economic events, such as Federal Reserve rate hikes, and also entertainment outcomes, like sports events.

At any rate, Robinhood is well positioned to capitalize on the great wealth transfer and the evolving landscape within the brokerage industry. That's why it earns a place within my hypothetical $50,000 portfolio.

3. Palantir Technologies

Finally, there's Palantir Technologies (NASDAQ: PLTR).

I'm allocating $25,000, or 50%, of my hypothetical portfolio to Palantir. Here's why:

I believe artificial intelligence (AI) represents the next big technological breakthrough. Furthermore, I believe it will revolutionize technology over the next two decades in the same way the smartphone did 20 years ago.

If that's the case, then Palantir is likely to be one of the top-performing stocks over the next 20 years. The company's AI platforms are built to leverage the power of AI across all manner of organizations. Whether it's increasing sales, discovering cost savings, or improving customer satisfaction, AI platforms -- in theory -- can do it all. If Palantir can deliver on its potential, it could become one of the world's iconic companies.

In point of fact, it's already become one of America's top stocks. The company boasts a market cap of $216 billion as of this writing. However, if my thesis is correct, that market cap could easily grow tenfold (or more) over the next 20 years.

All that said, Palantir stock isn't for every investor, or portfolio. The company's stock is expensive based on today's sales and profits, with a price-to-earnings (P/E) ratio of 487 and price-to-sales (P/S) ratio of 79.

Nevertheless, for growth-focused investors who are believers in the thesis that AI is the future, Palantir is a name that's too important to ignore.

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

Before you buy stock in Palantir Technologies, consider this:

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

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $672,177!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. 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 March 24, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jake Lerch has the following options: long January 2026 $30 calls on Robinhood Markets. The Motley Fool has positions in and recommends Meta Platforms and Palantir Technologies. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Elon Musk is doing nothing to stop Tesla’s downfallTesla sales are collapsing worldwide, and Musk’s chaotic leadership and focus on political power plays are doing nothing to stop the downfall. The start of 2025 has been troubling, particularly in Europe, where Tesla saw a 45% drop in new registrations in January compared to the same period in 2024, with further declines in February. […]
Author  Cryptopolitan
Mar 24, Mon
Tesla sales are collapsing worldwide, and Musk’s chaotic leadership and focus on political power plays are doing nothing to stop the downfall. The start of 2025 has been troubling, particularly in Europe, where Tesla saw a 45% drop in new registrations in January compared to the same period in 2024, with further declines in February. […]
placeholder
Nvidia stock sinks 4% as Trump’s tariff plans rattle AI tradeNvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
Author  NewsBTC
23 hours ago
Nvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
placeholder
XRP Price Set For ‘Hot’ April With Low Fibonacci Levels And High $5-$8 TargetThe past 24 hours have been challenging for XRP holders. A sharp 5.8% decline in price has brought the asset close to testing critical support around $2, with selling pressure currently dominating XRP’s trading volume. The sentiment is turning bearish, but one analyst is confident in the cryptocurrency’s long-term trajectory, predicting that the altcoin is […]
Author  NewsBTC
22 hours ago
The past 24 hours have been challenging for XRP holders. A sharp 5.8% decline in price has brought the asset close to testing critical support around $2, with selling pressure currently dominating XRP’s trading volume. The sentiment is turning bearish, but one analyst is confident in the cryptocurrency’s long-term trajectory, predicting that the altcoin is […]
placeholder
PEPE Price Forecast: PEPE could rally to double digits if it breaks above its key resistance levelPepe (PEPE) memecoin approaches its descending trendline, trading around $0.000007 on Tuesday; a breakout indicates a bullish move ahead.
Author  FXStreet
18 hours ago
Pepe (PEPE) memecoin approaches its descending trendline, trading around $0.000007 on Tuesday; a breakout indicates a bullish move ahead.
placeholder
Gold price hits new all-time high ahead of Trump’s reciprocal tariffsGold price (XAU/USD) edges higher again for a second day this week and for the first day of the second quarter of 2025.
Author  FXStreet
13 hours ago
Gold price (XAU/USD) edges higher again for a second day this week and for the first day of the second quarter of 2025.
goTop
quote