The smartest stocks to buy with $200 right now

You don’t need deep pockets to start investing or adding to your current positions. Many brokerages now offer fractional share investing, making it easier than ever to invest small amounts of money.

If you’re looking for a few smart stocks that can maximize the $200 earning potential, consider this Apple (NASDAQ:AAPL), Wholesale Costco (NASDAQ: COST), and Assets received (NASDAQ: UPST) have to offer.

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Apple: This tech giant still has avenues for growth

Some investors are tempted to ignore Apple because they think the company is past its prime. But these investors are overlooking a few key ingredients that make Apple a very smart stock to invest $200 in.

First, consider the company’s fantastic growth through its services business. Apple’s services include everything from sales in its App Store to its premium subscriptions (Apple One, Apple News+, AppleTV+ Apple Music, etc.), and business is booming right now. In fiscal 2021, Apple’s services revenue jumped 27% year-over-year. Equally impressive is the fact that this company enjoys gross margins of around 70%.

As impressive as the company’s services growth is, it’s not Apple’s only path to growth. The company is rumored to be building its own augmented reality (AR) device.

This pursuit could end up being very lucrative as the tech world begins to focus its attention on the metaverse, a digital world where people can do things like play games, shop and attend virtual events through digital avatars. Some estimates put Apple’s AR device shipments at 22 million by 2030, with the company’s extended reality devices potentially accounting for up to 20% of the company’s revenue in less than 20 year.

All of the above makes it clear that investing $200 in Apple stock could be money very well spent in years to come.

Costco: It works well no matter what happens with the economy

Maybe tech stocks aren’t your thing. I understand. Keeping up with the latest technology trends can be a lot of work. If this is your case, Costco stock might be of interest to you.

Costco is a warehouse-style retailer that makes some of its money by selling a wide range of discounted products, but it makes most of its money by selling annual memberships to individuals and businesses for the privilege of shopping. shopping in its stores. Total membership reached 61.7 million at the end of 2021, up 13% from just two years ago. All of the company’s membership growth has been a boon to Costco’s bottom line, with net income up 25% in fiscal 2021.

It also looks like Costco is on track to maintain this membership growth trend. Costco added 800,000 more members in the last quarter (reported Dec. 9).

Growing membership is one thing, but for Costco to really make money from its members, it needs to make sure those members keep to recover year after year. The good news is that Costco’s membership renewal rate in the US and Canada last quarter was 91.6%.

Investors should also consider that Costo is one of those unique companies that has the potential to do well no matter what happens with the economy. When all is well, the company offers many expensive items to its customers. And when the economy is struggling, many of its members turn to the wholesaler for great deals on household and food products.

All of this has made Costco an obvious investment for many people. That’s why investing a few hundred dollars in Costco stock might be a wise move.

Upstart Holdings has a huge market to expand into

The other stocks on this list are more stable investments, but if you really want that $200 to potentially grow as fast as possible, consider putting it in a growth stock like Upstart. If you’re unfamiliar with Upstart, this fast-growing company uses artificial intelligence (AI) to help match customers with lenders for personal loans and auto refinance loans.

An AI-powered loan originator may seem odd at first, but the company is successfully leveraging some very large markets. Upstart management estimates the company’s total addressable market for personal loans to be $81 billion and $672 billion for auto loans.

To capitalize on these huge opportunities, Upstart’s AI goes beyond traditional data points to match people with lenders, helping more customers get loans while reducing lending risk for banks. The company claims it has 75% fewer delinquencies at the same approval rates as major US banks.

Upstart makes money primarily from banks, which pay it fees for referrals and borrowings. The result is that 92% of its revenue comes from institutions, a very stable source of sales.

The company has had tremendous success so far, with sales up 250% year over year and net profit up 201% in the last quarter.

You should be aware that investing your $200 in Upstart will likely result in an additional dose of stock price volatility, compared to buying Apple or Costco stock, but it also has the potential to grow that amount. money at a much faster rate.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

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