If you have $50,000 to invest, you’re in a good position. That’s enough to make a significant difference for your retirement or whatever else you’re investing for.
With $50,000 to invest, you’ll likely want to find stocks that can deliver growth, but with relatively low risk. Luckily, there are a number of stocks available on the market that embody those characteristics. Keep reading to see two of them.
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1. Meta Platforms
Meta Platforms (META -1.88%) may be the best example of a business that can burn through billions in cash on a side project, but is still overwhelmingly successful.
Meta has lost more than $60 billion on its metaverse and artificial intelligence (AI)-focused division, Reality Labs. But the success of its advertising business and the growth of its family of apps division has more than made up for it.
Over the last three years, the stock is up more than 300%. It’s fended off a threat from TikTok with its Reels. Meta’s AI tools are also helping the company better monetize its ad inventory and help its advertisers use AI for images and ad copy.
Meta effectively has a duopoly in digital advertising with Alphabet, but it’s outgrowing its large rival. In the first quarter, revenue jumped 16% to $42.3 billion, and Meta reported an operating profit of $17.5 billion, or an operating margin of 41%.
The company benefits from a dream business model where it sells ads on user-generated content, and has more than 3 billion daily active users across its apps, primarily including Facebook and Instagram.
Meta’s wide-moat advantage in digital advertising and social media isn’t likely to go anywhere, and the business should continue to experience solid growth as long as the economy is healthy.
Meta is also a top AI competitor. Meta AI’s chatbot now has nearly 1 billion users, giving it the biggest user base of any AI platform. The company’s deal with Scale AI should also accelerate its AI ambitions.
Finally, the stock trades at a price-to-earnings ratio of 27, which looks like a great valuation for a company growing at its pace.
Overall, Meta combines solid growth, wide profit margins, a strong competitive advantage, and a good valuation, making it a great stock for a large investment. The company looks like a good bet to continue outperforming the market at relatively low risk.
2. Axon Enterprise
Axon Enterprise (AXON 0.79%) may not be a household name the way Meta is, but it similarly dominates its niche of law enforcement technology.
Axon makes Taser electrical weapons, body and dashboard cameras, and software systems that help law enforcement agencies make use of the data the cameras generate.
The complementary hardware and software products have created a strong moat for Axon, and its stock has gained more than 2,000% over the last decade.
These days, Axon is expanding beyond its traditional core in law enforcement into private sector businesses like packaged delivery companies. In fact, its biggest contract in 2024 was with a large logistics company, which demonstrates that there are applications for its camera systems beyond law enforcement.
The company also released a generative-AI product called Draft One, which writes first drafts of police reports based on camera footage. The product has been well-received by law enforcement as it’s saving valuable time, allowing officers to focus on more pressing matters.
Axon continues to deliver strong growth, with revenue up 31% to $604 million in the first quarter. It reported adjusted net income of $115 million, showing that it’s growing fast and has wide profit margins.
The company also raised its full-year revenue guidance from $2.55 billion to $2.65 billion to $2.6 billion to $2.7 billion, showing confidence in its growth the rest of the year.
With little direct competition across its product portfolio, Axon looks poised for more long-term tailwinds due to its innovation and growth in new markets like logistics.
Suzanne Frey, an executive at Alphabet, 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. Jeremy Bowman has positions in Axon Enterprise and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Axon Enterprise, and Meta Platforms. The Motley Fool has a disclosure policy.