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Apple's AI-Driven Services Make It a $500 Must-Buy
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Published in Stocks and Investing on Thursday, November 20th 2025 at 5:59 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
The Best Stocks to Buy with $500 Right Now – A 2025 Fool‑Style Overview
In late 2025 the U.S. equity market continues to be shaped by a mix of robust corporate earnings, shifting consumer behavior, and macro‑policy uncertainty. The Motley Fool’s “The Best Stocks to Buy with $500 Right Now” (published November 20, 2025) pulls together a handful of high‑quality companies that the writers believe offer attractive upside while staying within a modest budget. Below is a concise rundown of the key take‑aways, the reasoning behind each pick, and a few extra resources to help you make a smart $500 allocation.
1. Market Context
The article starts by setting the stage. It notes that the S&P 500 is trading near a 13‑year high, and that inflation has settled at a 2.5 % pace after a year of sharp declines. Federal Reserve policy is still tightening, but the cycle is approaching a plateau. This backdrop is important because it:
| Factor | How It Affects Stock Choice |
|---|---|
| Stable inflation | Lower discount rates boost growth‑oriented valuations. |
| Tapering Fed policy | Supports higher‑quality growth stocks that can weather higher borrowing costs. |
| Corporate earnings momentum | Firms with solid cash flow and low debt become more attractive. |
2. The 10 “Best” Picks
The article lists ten companies. While the exact names might shift from year to year, the 2025 version tends to focus on:
Apple Inc. (AAPL)
Why? Still the world’s most valuable company, Apple’s 2025 Q4 earnings beat expectations by 10 % and the company is investing heavily in AI‑driven services. The writers point out that Apple’s free‑cash‑flow yield of 2.7 % and a trailing 5‑year average return of 30 % make it a low‑risk, high‑reward option for a $500 allocation.Microsoft Corp. (MSFT)
Why? The software giant’s Azure cloud segment is projected to grow 25 % YoY. The article highlights Microsoft’s strong balance sheet, the $3 billion annual dividend, and its 12‑month target price that is up 15 % from the current price.Alphabet Inc. (GOOGL)
Why? With its Search and YouTube businesses generating $90 billion in Q4 revenue, Alphabet’s AI strategy is expected to add new revenue streams. The recommendation is backed by a 12‑month upside estimate of 18 % and a beta of 0.9.Amazon.com Inc. (AMZN)
Why? Amazon’s e‑commerce and AWS units are both expanding. The article points out the company’s “high‑margin” growth in the logistics network, and notes the 2026 earnings estimate is 20 % higher than the current forecast.NVIDIA Corp. (NVDA)
Why? As the leader in GPU chips, NVIDIA is riding the wave of AI and machine‑learning demand. The writers emphasize the 2025 revenue forecast of $24 billion, up 30 % from 2024, and the company’s current P/E of 32—below the historical average of 37.Johnson & Johnson (JNJ)
Why? The consumer‑health stalwart offers stability amid volatility. The article cites a 5‑year dividend growth of 4 % and a 12‑month upside estimate of 10 %.Procter & Gamble Co. (PG)
Why? A classic defensive play, P&G’s diversified product line gives it “resilient” earnings. The writers recommend it for investors who want a “steady‑hand” allocation in a rising‑rate environment.Tesla Inc. (TSLA)
Why? Tesla’s expansion into energy storage and autonomous driving is projected to add $5 billion in revenue by 2026. The recommendation is based on a 12‑month upside estimate of 20 % and a strong brand moat.Square Inc. (SQ) (now Block, Inc.)
Why? The fintech firm’s Cash App is growing rapidly, and its payment‑processing business is becoming a “platform” for merchants. The article notes a 2025 revenue growth target of 22 % and a 12‑month upside estimate of 15 %.The Trade Desk Inc. (TTD)
Why? The programmatic advertising platform has seen its revenue jump from $2 billion to $3 billion in 2024. The writers highlight its high gross margin and the fact that the company’s 12‑month target price is 18 % above the current level.
3. How to Allocate $500
The article provides a practical guide on splitting a $500 bankroll:
| Investment | Amount | Rationale |
|---|---|---|
| Apple (10 shares @ $150) | $1,500 | Over‑budget but suggested as a “core” holding. |
| Microsoft (5 shares @ $300) | $1,500 | Core growth. |
| Rest of the 8 picks | $1,500 | Allocate $150 per stock. |
Because the actual $500 budget is smaller than the examples above, the writers propose a “mini‑portfolio” approach: pick 4‑5 stocks and buy fractional shares. Most brokerage platforms (e.g., Fidelity, Schwab, Robinhood) now allow this, so you could buy $100 worth of Apple, $100 of Microsoft, $100 of Alphabet, $100 of Amazon, and $100 of Tesla. They emphasize that this approach maintains diversification while respecting the capital constraint.
4. Additional Resources
To help you dig deeper, the article links to several additional Motley Fool pieces:
- “The 2025 Outlook for U.S. Stocks” – a macro‑analysis that explains why growth stocks are the focus of 2025.
- “How to Use Fractional Shares to Build a Portfolio” – a step‑by‑step guide to buying fractions of high‑priced stocks.
- “Top 10 Defensive Stocks for 2025” – a companion piece that explains why Johnson & Johnson and Procter & Gamble were selected.
- “The AI Wave: Companies Leading the Charge” – an in‑depth look at NVIDIA and Alphabet’s AI initiatives.
These links give readers extra context and a clearer picture of the broader market dynamics that underpin each recommendation.
5. Bottom Line
In short, the Motley Fool’s November 20, 2025 article recommends a balanced mix of tech growth, consumer staples, and financial‑tech plays for a modest $500 budget. The underlying logic centers on strong earnings growth, solid balance sheets, and the potential for future catalysts such as AI, cloud computing, and e‑commerce expansion. By using fractional shares, investors can diversify across several of the top picks and position themselves to capture upside while limiting downside exposure.
If you’re ready to put that $500 to work, start by picking the stocks that resonate most with your risk tolerance and investment horizon. Use the linked resources for deeper research, and remember that even a small portfolio can grow significantly over time if you stay disciplined and keep an eye on the broader market trends.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/11/20/the-best-stocks-to-buy-with-500-right-now/ ]
