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MarketBeat
Chris Markoch

Got 1K to Invest? These 3 Stocks Are Still Magnificent Buys

When investors think about investing $1,000 in the stock market, they often look for stocks that they can buy for less than $10 a share. The allure of finding a 10-bagger (a stock that grows ten times above your purchase price) is irresistible.

But if you’re new to the market, you should understand that the potential for a great reward often comes with a greater risk than you want to take. And even the best stocks may take several years to come to fruition. 

That means you have to consider the opportunity cost of holding those stocks over time. In the last couple of years, that opportunity cost may have caused you to miss stocks like the Magnificent 7 stocks that have delivered some of the biggest gains since 2022.

The takeaway is that there are ways to get consistent growth, even market-beating, without putting your money in an ETF. Here are three technology stocks offering great opportunities for investors with $1,000 to put into the market in 2025.

Why NVIDIA Gave Investors a Gift in 2024

NVIDIA Corp. (NASDAQ: NVDA) has been one of the best-performing stocks in the last two years. In fact, it was the best-performing stock in the S&P 500 in 2023 and it was the third best-performer in 2024.

But does that mean now is a good time to buy NVDA stock? It can’t hurt that NVIDIA conducted a 10-for-1 stock split in June 2024. A stock split doesn’t change the value of a company (i.e., it doesn’t make a stock “more valuable”), but it does make it easier for retail investors to accumulate shares. In fact, you can buy over 9 shares of NVDA stock for $1,000.

What’s likely to fuel that growth is the growing demand for the company’s graphic processing units (GPUs) to meet the power demands of AI applications. NVIDIA released its newest high-performance Blackwell GPU in 2024 and has a significant backlog of orders that will keep revenue and earnings strong.

As of January 23, NVDA stock is up about 8.8%, and it just broke above its 50-day simple moving average, which suggests that there could be bullish momentum, particularly if the company reports strong earnings in February.

This Former 10-Bagger Still Has Room to Grow

Amaxon.com Inc. (NASDAQ: AMZN) is one of the original 10-bagger stocks. Many investors made a small fortune because they bought AMZN stock when it was just a small online bookseller. Today, Amazon is one of the world’s only trillion-dollar companies and it continues to be a market share leader in its e-commerce and cloud computing business (Amazon Web Services - AWS).

In the three years spanning 2022 through 2024, AMZN stock has delivered a total return of over 62%. That’s notable because a company of Amazon’s considerable size often has difficulty outperforming smaller, more nimble companies. This has also been a period where Amazon’s AWS business has been carrying the company.

However, according to Grand View Research, the global e-commerce and cloud computing markets will grow at a compound annual growth rate (CAGR) of nearly 20% through 2030. As the market share leader in each category, Amazon is likely to get a significant share of that growth.

Over its nearly 30-year history, Amazon has split its stock four times with the most recent split (a 20-for-1) split occurring in 2022. That has the stock at a price where investors can buy several shares for $1,000.

Availability May be Meta Platforms Secret Weapon

The potential TikTok ban in the United States should remind investors that news of this magnitude always creates opportunities. In this case, Meta Platforms Ine. (NASDAQ: META)stands to be one of the biggest beneficiaries of a TikTok ban.

The damage may have already been done even if the platform isn’t banned. Users who have come to rely on TikTok for a significant portion of their revenue are likely to start looking for secondary or alternative sources to house their content. Meta is the parent company of Instagram, which is TikTok’s biggest rival. The company also houses Threads on its popular Facebook platform.

Morgan Stanley (NYSE: MS)estimates that Meta could generate between $2.46 billion and $3.38 billion in ad revenue if TikTok is banned. That may not happen. However, now that content creators have to consider a backup plan; it’s likely to be bullish for META stock, which has an attractive valuation of around 27x forward earnings. 

The article "Got 1K to Invest? These 3 Stocks Are Still Magnificent Buys" first appeared on MarketBeat.

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