The Best Stocks to Buy for Beginners
Are you new to Stock market investing and intend to invest your hard-earned money into buying some stocks but don’t know which ones are best? Don’t worry. You are not alone. Every year, millions of people begin their journey of investing in the stock market to grow their wealth. But the question has always been, where do they start?
First, it would be a great idea to invest in blue-chip stocks that are less volatile. But what about investing in penny stocks? Well, it’s essential to understand that a tiny movement in penny stocks can translate into big gains. However, these gains can also translate into losses if you are not careful. So, if you are not willing to stomach such big swings, it would be better to start by sticking with well-known firms.
So, this insightful article has highlighted the best stocks that are ideal for beginners. So keep reading.
Many people know Alibaba Group Holdings as the Amazon of China since it is China’s largest e-commerce company. Alibaba is also the largest e-commerce firm in the Asia Pacific while also maintaining the top spot in leading the cloud industry. Additionally, Alibaba invested heavily in Artificial Intelligence and efficiently used the data that the company and its subsidiaries, notably Tmall marketplaces and Taobao, generated. As a result, Alibaba gained a competitive advantage in optimizing its offerings. An announcement in 2020 claimed that the company has the 6th highest brand valuation globally. It is the 2nd Asian e-commerce firm to exceed a $500 billion valuation. So, what’s stopping you from investing in Alibaba stocks when the company is growing in all growth drivers in the form of e-commerce, cloud computing, and AI?
For the past 20 years, Amazon Inc, the largest e-commerce firm globally, has been the darling of Wall Street. Amazon is an industry leader in the cloud industry and the e-commerce segment. That’s not all. Amazon also has significant market shares in video streaming and other emerging trends. The company’s business basics remain sturdy despite rather choppy stock trading in recent weeks. Amazon’s latest quarterly report surprised investors after posting huge gains. If you are searching for a stock that will grow your portfolio over the long term, you wouldn’t want to miss owning a small share of Amazon. However, the AMZN stock price may be somewhat too steep for some people. But luckily, most platforms today permit purchases of fractional shares.
Alphabet is Google’s parent company and is among the globe’s biggest and most profitable firms. Google alone generates around 99 percent of the firm’s revenue, of which approximately 85 percent comes from online advertising. So why is GOOGL stock great for beginner investors? The majority of people around the universe use some form of Google product in their everyday lives. It turns out that Google is the most visited website, with more than 62.19 Billion visitors in 2019 alone. Google is also a tech giant holding a 92.18% search engine market share. Billions of users depend on Google for their searches every day, while the company also provides various products and services, including Google Shopping, Google News, and Google Drive.
Many investors have been interested in having a bite of Apple Inc. And this is not a surprise as the Apple tech giant has been bringing enormous rewards to its stockholders and shareholders. Apple is the pioneer trillion-dollar firm in the entire universe. In 2020, Apple broke a new record again after becoming the first company to surpass the 2 trillion dollar mark. Almost everybody easily forgets that Apple began as a computer company manufacturing Macs. Today, Apple is popularly known as the premier smartphone maker. However, this tech giant never rests on its laurels. Apple is leveraging its big active user base to develop its services and wearables business. The company’s ability to innovate and implement during the current challenging period is proof that it can weather all storms. And this could be a compelling case for beginner investors.
Facebook is one leading tech stock to look forward to for big potential gains since it is the largest social media firm. Currently, Facebook exceeds 2.7 billion active users meaning that there is no shortage of viewers of digital advertisements on this online platform. A recent study shows that three out of the six most popular social media online platforms like Instagram, Facebook, and Whatsapp belong to Facebook. Facebook has heavily invested in digital advertising as its key revenue driver. EMarketer points out that digital ad sales could be more than $513 billion by 2023. And still, Facebook is not shy about the company’s e-commerce ambition. It intends to bring shopping integrations to WhatsApp to allow users to purchase products directly from the green chat app. The in-app shopping functionality is attractive, especially in emerging markets where the green chat app has a robust user foundation. With this in mind, FB could be an excellent stock for anyone new to stock investing.
Walt Disney Inc. is an entertainment powerhouse that has been among the leading entertainment stocks to watch in the stock market. From brands, movie theaters to theme parks, it is clear that Disney is not a one-trick pony. Today, Disney is restructuring and prioritizing its streaming business as the company becomes the most vital facet of its media business during the ongoing pandemic. And within the streaming services realm, Disney+ appears to be posing great threats to the streaming world’s major players. Although Disney+ is a relatively new service, it has already racked up more than 60.5 million paying subscribers worldwide. And once the COVID-19 pandemic is over, Disney’s primary revenue generators can once again fire on every cylinder. So you should probably ask yourself if you could expect DIS stock to have a monstrous rally when such happens.
Other stocks that best suit beginners include Microsoft, General Motors, Netflix, Nio, Shopify, Snowflake, and Salesforce.com. You can also try Tesla and Unity.
2022 saw numerous new participants in the stock market because many people began stock investing for the first time during the ongoing COVID-19 pandemic. If you are among these people, congratulations for taking such a bold step and making such a critical game-changer decision. Some people might prefer participating in the stock exchange over a short period. However, the recommendation is to consider long-term stock trading. Averagely, the stock market generates approximately 10% annual return, which might seem easy, but only a few people achieve such results. Why? Most investors don’t stay invested long enough.