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

Kick-starting a portfolio with a $1,000 investment might appear rather humble, yet it serves as an excellent foundation. The real struggle lies in discovering stocks that can multiply your initial investment many times over, all while minimizing unnecessary risks.

Certainly, it’s true that buying individual stocks isn’t completely free of risk. However, by sticking with well-established firms, you significantly lower your investment risks. These three companies, currently considered undervalued, offer a promising opportunity for investors as they tap into their growth potential, potentially leading to substantial gains.

1. Alphabet

One of the most attractive deals available nowadays is Alphabet Inc., Google’s holding company, with ticker symbols GOOGL and GOOG.

Although Alphabet was a trailblazer in AI technology, it seemed taken aback when OpenAI unveiled its chatbot powered by generative AI, similar to ChatGPT. Shortly following this, Alphabet launched Google Gemini, but now, for the first time in many years, Google Search is facing competition that could potentially overshadow its dominance.

Additionally, Alphabet continues to earn approximately 74% of its income through digital advertising. However, as its AI technology guides users to websites less frequently, it reduces the number of chances to make ad-based profits.

Currently, Google Cloud contributes approximately 14% to Alphabet’s total earnings. Additionally, as self-driving cars gain popularity, Waymo – Alphabet’s autonomous driving subsidiary – could potentially bring in extra income. Moreover, Alphabet possesses a substantial cash reserve of around $95 billion and has generated nearly $75 billion in free cash flow over the past year, offering it significant financial resources to expand into various other business opportunities.

In the midst of challenges, Alphabet Inc.’s shares are trading at approximately 21 times their annual earnings. Considering its diverse income streams beyond advertising and potential opportunities, there’s a strong possibility that Alphabet hasn’t finished growing, implying it may continue to outperform the market for several more years.

2. Uber

Investors are familiar with Uber Technologies (UBER) as a pioneer in ride-sharing and one of the major players in the delivery sector. This company has built a reputable global brand not only in these industries but also in its logistics business.

While Uber’s mobility and delivery services continue to experience long-term growth, it might be the autonomous vehicle sector that shapes its long-term destiny. The company has formed partnerships with self-driving car companies like Waymo, a division of Alphabet, and Cruise, a subsidiary of General Motors.

I serve as an onlooker, observing Uber’s role in facilitating a platform for organizing rides. This service connects customers with ride-giving companies, enabling these partners to dedicate their resources towards refining autonomous driving technologies and, to some degree, developing air taxis – a realm where innovative firms like Joby Aviation are making significant strides.

Due to the rapid advancement in the self-driving industry, Straits Research anticipates that the worldwide ridesharing market will experience a remarkable 21% yearly growth, as projected until 2033, culminating in a massive market value of approximately $918 billion.

In 2024, Uber brought in approximately $44 billion in total revenue. Interestingly, less than half of this income came from their ridesharing services, implying that Uber may have a substantial role in the projected growth during the upcoming years.

A single instance of a reduced income tax can distort the apparent value of a company when using its Price-to-Earnings (P/E) ratio as a valuation tool. However, considering its 25 times forward P/E ratio, Uber might be an attractive option for both growth and value investors aiming for substantial returns.

3. Sea Limited

Sea Limited (SE), which is not commonly recognized in American households, focuses mainly on e-commerce and fintech sectors in Southeast Asia. For investors who have regretted missing out on Amazon, this tech company could potentially be a second opportunity to invest.

In simple terms, the Shopee division within the company is the top online retailer across Southeast Asia, serving an estimated population of approximately 650 million people. Following some unsuccessful ventures into markets outside of Asia, it has adopted strategies similar to Amazon’s and significantly boosted its investment in logistics.

As a tech enthusiast, I’m thrilled about the strides being made by fintech giants like Monee. They’re making a difference by offering mobile payment solutions to cash-centric consumers in the developed world. Meanwhile, Garena’s game Free Fire was the most downloaded mobile game globally in 2024!

Over the past period, Monee has maintained a robust performance. On the other hand, Shopee’s expansion has rebounded following its strategic investments in logistics. Similarly, after experiencing consecutive quarters of decreased revenue, Garena has bounced back due to the resurgence of interest in Free Fire.

In Q1 2025, Sea Limited experienced a significant surge in revenue as all three of its segments expanded, with a remarkable year-over-year increase of 30%. This is a substantial jump compared to the 5% annual growth observed in Q1 2023.

This enhancement has resulted in a higher appraisal. Although its Price-to-Earnings (P/E) ratio stands at 112, which might seem expensive, the forward P/E of 40, derived from projected expansion, suggests it could be a steal. Given that its market capitalization of $94 billion is minimal compared to Amazon’s $2.4 trillion market cap, it seems poised for substantial growth from its current valuation.

2025-07-20 17:22

1. Alphabet

2. Uber

3. Sea Limited

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