AOL's Quick-Start Guide to Two Winning Stocks for a $50 Investment
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AOL’s Quick‑Start Guide to Two Winning Stocks for a $50 Investment
The piece, titled “2 Top Stocks to Invest $50 In,” sits at the intersection of micro‑investing wisdom and mainstream market analysis. Written for readers who are just starting out—or who simply want a small, focused way to dip their toes into equity markets—the article takes a clear‑cut, step‑by‑step approach to picking two high‑potential stocks that can be bought for just a $50 budget each. Below, we unpack the article’s core ideas, the stocks it recommends, and the supporting context it offers via the embedded links.
1. The Premise: Micro‑Investing as a Test Bed
The author opens by acknowledging a common barrier: the fear of large initial outlays. “What if I could test a stock without a huge capital commitment?” the article asks. It then proposes a “$50 + $50” strategy: buy one share of each of two carefully chosen companies, thereby diversifying a tiny wallet and reducing the chance of a single bad outcome.
The article cites a few sources to back this idea: a link to a Investopedia primer on micro‑investing, and a mention of the “Robinhood” app’s zero‑commission policy (linked to a recent Wall Street Journal piece on commission‑free brokerage). These references give the reader a practical way to execute the plan.
2. The First Pick: Tesla, Inc. (TSLA)
Why Tesla?
Tesla is the article’s flagship pick, positioned as “the most talked‑about EV (electric‑vehicle) maker.” The author justifies the choice by pulling several metrics:
- Growth Trajectory – Tesla’s year‑over‑year revenue growth of ~60% in 2023, a headline that the article cites from Yahoo Finance (link embedded).
- Production Scale – A note that the company is ramping up Gigafactory production in Texas, which should drive unit volumes.
- Innovation – The article underscores Tesla’s AI efforts in self‑driving tech, citing a Bloomberg report (linked within the article).
Risk Management
Despite Tesla’s allure, the article reminds readers that the stock is known for volatility. The author recommends:
- Staggered Entry – Instead of buying a full $50 in a single go, invest $25 now and another $25 in two months.
- Stop‑Loss Setting – A mental stop‑loss at 10% below the purchase price to limit downside exposure.
- Diversify Beyond Tech – A brief nod to the idea of pairing Tesla with a non‑tech stock for balance.
3. The Second Pick: Shopify Inc. (SHOP)
Why Shopify?
The article’s second recommendation is Shopify, described as “the e‑commerce platform that’s powering the digital storefronts of small businesses worldwide.” Key reasons highlighted include:
- User Growth – Over 1.6 million merchants as of Q4 2023, with the author linking to a Shopify investor presentation.
- Recurring Revenue – The subscription‑based revenue model provides a predictable cash flow.
- Platform Expansion – Recent investments in fulfillment services (Amazon‑like logistics) that could reduce churn.
Complementing Tesla
The article points out that Shopify operates in a completely different sector (e‑commerce vs. EV), which helps reduce systematic risk. By buying $50 in each, the portfolio benefits from exposure to two high‑growth sectors while remaining balanced.
4. How to Execute the $50 + $50 Play
Brokerage Choice
- Commission‑Free Platforms – The author lists Robinhood, Webull, and SoFi as viable options, citing their zero‑commission structure (links to each site).
- Account Minimums – An emphasis that all of these platforms require no minimum deposit, making the $50 entry feasible.
Purchase Mechanics
- The article walks through a quick buy‑to‑sell example using the Robinhood app:
- Search for TSLA, enter “$25” (rounded to the nearest share).
- Confirm and repeat for SHOP.
- It also notes that fractional shares allow the full $50 to be used even if a single share costs more than $25.
Monitoring & Exit
- Price Alerts – The article recommends setting alerts on each app so the reader is notified of a 10% upside or downside.
- Quarterly Review – A link to a Seeking Alpha article on quarterly portfolio reviews is included, reminding investors to re‑evaluate after each earnings report.
5. Supporting Context & Further Reading
Beyond the two stock picks, the article threads a few more resources:
- “How to Use a Stock Screener” – A tutorial on Finviz, linked from the article, that shows how readers can broaden their search criteria if they want more options.
- Macro‑Trends Overview – A quick dive into AI, renewable energy, and e‑commerce, with links to CNBC coverage and a Bloomberg ESG report.
- Risk Management Fundamentals – A pointer to a Morningstar guide on diversification, explaining why even a small portfolio should spread risk.
These links serve to bolster the reader’s understanding of why Tesla and Shopify, in particular, fit into current market narratives.
6. Bottom Line
The AOL article distills a simple, actionable strategy: use a $50 budget to buy one share of each of two carefully vetted, high‑growth stocks—Tesla and Shopify. By anchoring the picks in clear growth metrics, linking to reputable sources, and outlining concrete purchase and risk‑mitigation steps, the article turns an abstract “invest $50” idea into a tangible plan. For beginners or those who simply want a low‑stakes way to test the waters, the guide is a succinct, well‑connected entry point into the world of equity investing.
Read the Full AOL Article at:
[ https://www.aol.com/articles/2-top-stocks-invest-50-091500446.html ]