The Best Stocks to Invest $50,000 in Right Now

If you’re looking to put a big chunk of money to work in the market now — say $50,000 — you’re going to want to invest in market leaders with strong potential upside that are still trading at reasonable valuations.

Let’s look at two great stocks that fit this description.

Amazon

Amazon (AMZN -0.61%) share prices have lagged in the past few years, but that could be about to change. After years of heavy investment in logistics and automation, the company is now starting to see significant operating leverage in its e-commerce business. That could be seen last quarter in its North America segment, where its operating income surged 47% on just an 11% increase in revenue.

Much of this can be attributed to the company’s expanding use of artificial intelligence (AI) and robotics. It now has more than a million robots in its fulfillment centers, which are all coordinated to run smoothly by its DeepFleet AI model. These robots can do more than just lift packages, with some able to detect damaged goods or even repair themselves. Management is also using AI to determine which fulfillment centers should stock specific items and how best to route deliveries.

Another contributor to Amazon’s improving operating leverage is its digital advertising business, which carries much higher gross margins than the rest of its e-commerce operations. The company has been using AI to improve its ad targeting and performance in its sponsored ad business, which is attracting advertisers and driving growth. This has been one of its fastest-growing businesses, with revenue jumping 23% last quarter to $15.7 billion.

Amazon’s largest segment by profitability is its cloud computing unit, Amazon Web Services (AWS). Its revenue climbed 17.5% last quarter to nearly $31 billion, with operating income topping $10 billion. AWS benefits from customers who use its services and infrastructure to build out their own AI models and apps. It also has its custom AI chips, which can help reduce costs, and is invested in the AI model company Anthropic.

The company’s emerging bets include its biggest swing, Project Kuiper, a satellite broadband network designed to provide global, low-latency internet service. It competes with Elon Musk’s Starlink and could be a big growth driver.

At a forward price-to-earnings ratio (P/E) of 28.5 times next year’s earnings estimates, Amazon is at one of its lowest valuations in years, and below traditional retailers like Walmart and Costco, making the stock an attractive long-term buy at current levels.

Alphabet

Alphabet (GOOGL 0.82%) (GOOG 0.86%) is another market leader with good upside potential that trades at an attractive valuation. Search remains its core business, but it’s evolving quickly due to AI by using the technology to transform the entire search…