Can you become a millionaire by investing in stocks? Absolutely. But there are a few important rules to follow. It’s important to spread your investments across a wide range of solid companies, and it’s essential to invest for the long term. You’re much more likely to reach your goal if you hold on to quality stocks for 10 years or more than if you get out after a few weeks or months.
Of course, even with these guidelines, you may not make millions, but chances are you will still be in a fantastic financial position in the future if you make smart choices now and continue investing for the long term.
These days, a great way to boost your portfolio or start with a bang if you’re new to investing is to buy a few leading tech stocks that are likely to continue their leadership well into the future. I’m thinking of two with great earnings and stock performance and lots of potential going forward. These two players won’t get the job done alone — but it’s unlikely that one stock will make you a millionaire unless you invest a huge amount of money in just that one player. And that’s way too risky. These Top Tech Stocks might help make you a millionaire, but let’s find out more about it.
1. Amazon
Amazon (NASDAQ: AMZN) is one of my favorite tech stocks because of its diversification and leadership in two high-growth areas. The company dominates both e-commerce and cloud computing. Additionally, Amazon is also poised to be one of the biggest winners in the fast-growing field of artificial intelligence (AI).
In e-commerce, Amazon’s Prime subscription program and focus on low prices and fast shipping should help it stay ahead of the curve. Annual sales events like Prime Day help the company bring in new members — and member retention is high. In the first three months of 2023, 99% of Prime members renewed for a second year, according to Statista. Because members pay for Prime, it’s in their best interest to do as much of their shopping on Amazon as possible — all of which points to more potential growth going forward.
When it comes to cloud computing, Amazon Web Services (AWS) is the global leader, and its focus on AI has already begun to add even more growth to the picture. AWS recently reached $105 billion in annual revenue thanks to its AI products and services — offering everything from chips to a full service called Amazon Bedrock.
These companies have helped Amazon grow its revenue and net profit into the billions of dollars — and the company’s overhaul of its cost structure a few years ago has made it more efficient than ever. All of which makes Amazon a no-brainer purchase for your millionaire-maker portfolio.
2. Meta-platforms
Meta platforms (NASDAQ: META)like Amazon, is a leader in its field. As the owner of Facebook, Messenger, Instagram and WhatsApp, the company is a social media giant. More than 3.2 billion people worldwide use at least one of these apps every day.
Importantly, Meta has a rock-solid moat, or competitive advantage, that should keep it in the top spot. It’s very hard for users to drop Facebook or WhatsApp, for example, because they know that if they do, many of their contacts won’t be on other platforms. This provides confidence that Meta will maintain its leadership.
But Meta isn’t relying on this moat alone. The company is working to make its social media apps better and better thanks to its focus on AI. The goal is to have AI available in the future that meets everyone’s needs, from professional to leisure. Meta has already launched its first AI assistant, powered by its own large language model, and has said that its biggest area of investment this year is in AI.
How does all this translate into revenue? Meta sells ads to advertisers, who hope to reach us all where they can find us: on Meta’s apps. By making these apps better and better with AI, we’ll use them more — and advertisers can therefore spend more.
As it stands, advertising has already generated billions of dollars in revenue for Meta. And the company even felt comfortable enough with its financials earlier this year to launch its first-ever dividend — saying it can afford to both reward shareholders and invest in growth. So, through Meta, you can collect dividends and benefit from what will likely be a long period of growth going forward.
Should You Invest $1,000 in Amazon Now?
Before you buy stock on Amazon, here are some things to consider:
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former chief market development officer and spokeswoman for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Adria Cimino has positions at Amazon. The Motley Fool has positions at and recommends Amazon and Meta Platforms. The Motley Fool has a disclosure policy.
2 Top Tech Stocks That Can Make You a Millionaire was originally published by The Motley Fool
