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

You can buy a lot of wonderful things with $50,000 -- a car, a boat, even the trip of a lifetime.

However, it's unlikely that any of those wonderful things will earn you a return. An investment portfolio, on the other hand, can pay you back -- and then some.

With that in mind, let's imagine how to build a hypothetical portfolio with $50,000 -- using three of my favorite growth stocks. Here's what it would look like.

Image source: Getty Images.

1. Meta Platforms

To get things started, I'm allocating $20,000, or 40%, of my hypothetical portfolio to Meta Platforms (META 0.07%).

Here's why I'm choosing Meta: It's got a fantastic business model built around its incredible user base. The company boasts more than 3.3 billion daily active users (DAUs) across its platforms including Facebook and Instagram. Consequently, the company generates about half a billion dollars every single day in revenue -- mostly from ad sales.

As long as those users keep coming back to check their feeds, Meta will keep racking up ad sales, and plenty of profit, too. In the company's most recent quarter (for the three months ending on Dec. 31, 2024), Meta generated $48 billion in revenue and converted $21 billion into profit (specifically net income).

Not only is this business model massively profitable, but Meta's top-line sales are growing like a weed. Over the last five years, quarterly revenue growth has averaged almost 20% -- staggering growth for a company of its size.

In short, Meta is an excellent stock to own, which is why it's the first name I'm adding to my hypothetical $50,000 portfolio.

2. Robinhood

Next up is Robinhood Markets (HOOD -0.57%).

I'm allocating $5,000, or 10%, of my portfolio to Robinhood, based on a simple thesis.

It's called the great wealth transfer. In short, in the next 25 years, tens of trillions of dollars -- perhaps more than $100 trillion -- will pass from the baby boom generation to their heirs.

As this occurs, there will be an opportunity for brokerage firms like Robinhood. Thanks to its appeal among younger investors, Robinhood will be hoping to increase its overall customer base and revenue.

The company's early results already look promising. Revenue has increased to $3 billion, up from $1.3 billion just two years ago. In addition, the company reported its highest-ever profit last year, recording $1.4 billion in net income, as opposed to a loss of $2.6 billion in 2022.

HOOD Revenue (TTM) data by YCharts

Finally, Robinhood is also branching to areas beyond the traditional territory of brokerage firms. The company has begun to offer prediction contracts, which allow customers to wager on the outcome of economic events, such as Federal Reserve rate hikes, and also entertainment outcomes, like sports events.

At any rate, Robinhood is well positioned to capitalize on the great wealth transfer and the evolving landscape within the brokerage industry. That's why it earns a place within my hypothetical $50,000 portfolio.

3. Palantir Technologies

Finally, there's Palantir Technologies (PLTR -1.53%).

I'm allocating $25,000, or 50%, of my hypothetical portfolio to Palantir. Here's why:

I believe artificial intelligence (AI) represents the next big technological breakthrough. Furthermore, I believe it will revolutionize technology over the next two decades in the same way the smartphone did 20 years ago.

If that's the case, then Palantir is likely to be one of the top-performing stocks over the next 20 years. The company's AI platforms are built to leverage the power of AI across all manner of organizations. Whether it's increasing sales, discovering cost savings, or improving customer satisfaction, AI platforms -- in theory -- can do it all. If Palantir can deliver on its potential, it could become one of the world's iconic companies.

In point of fact, it's already become one of America's top stocks. The company boasts a market cap of $216 billion as of this writing. However, if my thesis is correct, that market cap could easily grow tenfold (or more) over the next 20 years.

All that said, Palantir stock isn't for every investor, or portfolio. The company's stock is expensive based on today's sales and profits, with a price-to-earnings (P/E) ratio of 487 and price-to-sales (P/S) ratio of 79.

Nevertheless, for growth-focused investors who are believers in the thesis that AI is the future, Palantir is a name that's too important to ignore.