The Best Stocks to Invest $1,000 in Right Now

Even though the technology sector has faced some challenges at the beginning of the year, it continues to be one of the best long-term investment options. This sector has driven market growth in recent years, and currently, eight of the largest companies in the S&P 500 are either tech firms or have strong ties to technology.

Considering this, here are three excellent stocks to consider investing $1,000 in today for the long haul.

1. Meta Platforms

Meta Platforms (META) stands out as a leading player in the digital advertising landscape, operating a suite of popular social media and messaging applications including Facebook, Instagram, WhatsApp, Messenger, and Threads. The company boasts a massive user base, with nearly 3.3 billion people engaging with its apps daily.

Meta has excelled in monetizing its user engagement through advertising. In its last quarter, the average revenue per person (ARPPU) rose by 12% to $12.29, far exceeding the ARPU of other platforms. For instance, Snap reported a global ARPU of only $3.10, while Pinterest saw $1.70. Meta has a particularly effective approach to monetization outside of the U.S.

The company is currently investing in artificial intelligence (AI), developing its own large language model called Llama. AI is enhancing user engagement, encouraging users to spend more time on its platforms and increasing ad revenue. Notably, ad impressions and prices increased by 7% and 11% respectively last quarter.

Meta is also working on growing Threads, aiming to establish it as a significant platform. At the end of the last quarter, Threads had 275 million users, gaining approximately 1 million new users daily. Additionally, Meta continues to invest in the metaverse, viewing it as a promising opportunity.

2. Alphabet

Similarly to Meta, Alphabet (GOOGL) (GOOG) ranks among the world's largest digital advertising firms, with ad services through its Google search engine, YouTube streaming platform, and various other owned and third-party properties. Google maintains a dominant 90% market share in search, while YouTube remains the most popular video platform globally.

Alphabet also owns Google Cloud, which is the third-largest cloud computing service and is rapidly growing. In its last quarter, Google Cloud's revenue surged by 35%, with operating profits jumping from $266 million a year ago to $1.95 billion. This growth is attributed to a rising number of clients developing their own AI applications using Google’s services. The company’s custom tensor processing unit (TPU) chips have been pivotal in reducing costs and expediting AI processing.

Much like Meta, Alphabet is also heavily investing in AI. This includes advancements within Google Cloud and its AI model, Gemini, along with applications such as Veo 2, a text-to-video solution. AI is also being utilized to enhance search result quality, potentially leading to new revenue streams through innovative ad formats.

In the realm of autonomous driving, Alphabet is leading with its Waymo division, which is the only robotaxi company in the U.S. currently offering paid rides. The company has also made substantial breakthroughs in quantum computing with its Willow chip.

Overall, Alphabet presents a robust mix of established and emerging business segments.

3. Microsoft

Microsoft (MSFT) has been a pioneer in integrating AI into its operations, having formed a partnership with OpenAI, the creators of ChatGPT, and making a significant investment in the AI field. As a result, AI has become prevalent across much of Microsoft's business units.

The most notable beneficiary of Microsoft's AI initiatives has been its cloud computing service, Azure, which experienced a remarkable 33% revenue increase last quarter. Azure stands as the second-largest cloud provider after Amazon’s AWS and has been capturing a larger market share. Similar to Google Cloud, Azure’s growth is fueled by customers developing their own AI-driven applications.

However, demand for Azure’s AI services has surpassed its current capacity, limiting growth. Microsoft anticipates acceleration in growth later this year with the availability of additional capacity and plans to invest around $80 billion in AI data centers this year.

Beyond cloud computing, Microsoft dominates the productivity software market with its Microsoft 365 suite, which includes widely used programs like Word and Excel, as well as the leading PC operating system, Windows. The introduction of AI Copilot add-ons promises to enhance efficiency in work processes significantly.

These three companies have consistently proven to be leaders and innovators in the market, all at the forefront of the AI revolution. Thus, they are considered outstanding options for long-term investment.

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