Smart Ways To Invest Your $50

If you're looking to invest $50, you'll be pleased to know that there are a variety of options available to you. While you may not be able to afford to buy whole shares of certain stocks, many trading platforms now offer commission-free moves and fractional shares, making it cheaper to invest even modest amounts.

If you're looking for a short-term investment, you'll probably want to find a safe place to keep your cash before you need to access it in the near future. Some options include high-yield savings accounts, money market accounts, and cash management accounts.

If you're looking for stocks to invest in, there are several options available for under $50. These include Skillz, Palantir Technologies, and Columbia Care. Outside of the stock market, you could also consider investing in government or corporate bonds, or a certificate of deposit.

High-yield savings accounts

• Higher interest rates: High-yield savings accounts offer much higher interest rates than traditional savings accounts. The difference in savings account interest rates can be significant, with the top accounts in the country typically offering 10 to 12 times the national average rate.
• Easy to set up: High-yield savings accounts are often offered online and can be easily set up through a bank's website or mobile app.
• Flexible deposit amounts: While some high-yield savings accounts have minimum opening deposit requirements, others allow you to open an account with no minimum deposit. This flexibility makes them accessible to a wide range of investors.
• Low risk: High-yield savings accounts are considered low-risk investments because they are insured by the Federal Deposit Insurance Corporation (FDIC) at banks and by the National Credit Union Administration (NCUA) at credit unions. This means that your money is protected, up to certain limits.
• Liquidity: High-yield savings accounts offer high liquidity, allowing you to access your money whenever needed. However, it's important to note that savings accounts typically only allow up to six fee-free withdrawals or transfers per statement cycle.
• Ideal for short-term savings goals: High-yield savings accounts are well-suited for short-term savings goals, such as building an emergency fund or saving for a specific purchase. The ability to earn a higher interest rate while maintaining easy access to your funds makes these accounts attractive for short-term goals.

When choosing a high-yield savings account, it's important to consider factors such as the annual percentage yield (APY), minimum opening deposit and balance requirements, monthly maintenance fees, and the ease of accessing your funds. It's also essential to ensure that the account is FDIC-insured or NCUA-insured to protect your investment.

MercadoLibre stocks

MercadoLibre (NASDAQ: MELI) is a Latin American e-commerce operator that offers an online marketplace and related services, like e-payments. The company has shown robust growth, with its shares rising nearly 2,700% over the past 10 years. MercadoLibre's core business remains strong, and it has benefited from rising e-commerce penetration rates across Latin America.

The company has a host of complementary businesses to its online shop, including shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago and Mercado Credito), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops). MercadoLibre generates revenue from various sources, including final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.

MercadoLibre's main defence against overseas challengers like Amazon is its self-managed Mercado Envios logistics network, which allows it to ship products across challenging terrains and underdeveloped regions. Mercado Envios handled 83% of its deliveries in the second quarter, up from just over 50% a year ago.

The company's payment platform, Mercado Pago, also plays a crucial role in locking in users and widening its moat. During the second quarter, Mercado Pago's total payment volume (TPV) growth of 72% represented nearly 730 million total transactions. Its off-platform TPV grew 94% year over year. Mercado Pago also offers investment accounts in its mobile wallet, ending the second quarter with over 19 million active investment accounts.

While MercadoLibre faces challenges such as rampant inflation across Latin America and social unrest in some countries, it still has plenty of room to grow. With a low e-commerce penetration rate in Brazil, its largest market, and even lower rates expected in other Latin American countries, MercadoLibre's number of unique active users and its total addressable market could more than double within a few years.

Therefore, investing in MercadoLibre stocks could be a sound decision, especially considering its strong growth trajectory and the potential for further expansion in Latin America's booming e-commerce market.

Disney stocks

When considering where to invest $50, it's important to remember that you don't need a large sum of money to begin building wealth. Even with the stock market near an all-time high, long-term investors can still find good deals.

One option to consider is Disney stocks. The Walt Disney Company is a diversified, worldwide entertainment company with a current stock price of around $111 per share. The company operates through several business segments, including Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products. Disney has a strong brand and is a well-known name in the entertainment industry, with a presence in film, television, and direct-to-consumer video streaming content production and distribution.

There are a few things to keep in mind when considering investing in Disney stocks:

• Disney's stock price has fluctuated over time, with a 52-week range of $78.73 to $112.92.
• The company's revenue (TTM) is $89.203 billion, with a gross margin (TTM) of 35.03% and a net margin (TTM) of 3.26%.
• Disney's debt-to-equity ratio is 46.65%.
• The company recently announced a cash dividend of $0.45, with an ex-date of July 8, 2024.
• Disney's latest film, "Inside Out 2," had a strong opening weekend, bringing in $155 million in the US and $295 million globally, which could positively impact the company's stock performance.

Before making any investment decisions, be sure to do your own research and consult with a financial professional to determine if Disney stocks or any other investment opportunities are right for your financial goals and risk tolerance.

Low-priced stocks

Skillz (SKLZ)

Skillz is a mobile gaming platform company that has focused on being a platform where gamers can compete against each other for cash prizes, rather than investing in the costly development of games. This strategy has allowed Skillz to maintain a 95% gross margin. Skillz also has a high pay-to-play conversion rate, with 17% of its monthly active users being paying members, compared to the industry average of 2%. The company has also signed a multiyear agreement with the NFL, allowing developers to create NFL-themed games that will run on the company's platform.

Columbia Care (CCHWF)

Columbia Care is a U.S. multistate operator (MSO) in the cannabis industry. The U.S. is expected to account for the majority of global marijuana sales by mid-decade, with U.S. weed sales projected to reach $47.6 billion in 2026. Columbia Care has expanded into limited-license markets and has focused on acquisitions to quickly expand its reach. While costs associated with these acquisitions may weigh on the company's near-term operating results, they are expected to pay off by 2022. With Wall Street expecting the company's sales to nearly triple between 2021 and 2024, and the company likely turning the corner to profitability next year, now may be a good time to invest.

Palantir Technologies (PLTR)

Palantir Technologies is a data-mining company with two core platforms: Gotham, which is government-focused, and Foundry, which is enterprise-directed. Palantir has secured big, multiyear contracts from the U.S. government, and its total remaining deal value across all platforms is $3.4 billion. While Gotham is currently the leading sales contributor, the long-term appeal lies with Foundry, as there is a huge potential market of domestic and global businesses that could benefit from its big data platform. Palantir is expected to see sustainable double-digit sales and bookings growth for many years to come.

Simulations Plus (SLP)

Simulations Plus is a science-focused software specialist that develops modelling and simulation software for the pharmaceutical and biotechnology industries, as well as for the industrial chemicals, cosmetics, food ingredients, and herbicide sectors. SLP has gained 21% in equity value since the start of the year and has a strong balance sheet, with an Altman Z-Score of 63.64, indicating a low risk of bankruptcy. Analysts give SLP a strong buy view, with an average price target of $61.50, implying a potential upside of 37%.

Ternium (TX)

Ternium is a manufacturer of flat and long steel products, headquartered in Luxembourg, with production centres in Latin America. Ternium has dropped 14% in value over the past year but is on a recovery path, gaining nearly 29% this year. Ternium has a strong financial profile, with a cash-to-debt ratio of 3.36, ranking above 82.6% of its peers, and a three-year revenue growth rate of 17.2%, compared to a sector median of 9.05%. Analysts give Ternium a strong buy consensus, with an average price target of $50.70, implying a potential upside of 32%.

Short-term government bonds

The bonds have a duration of between one and 3.5 years, and they offer a reliable rate of interest, though a lower rate than corporate bonds. They are highly liquid and can be bought and sold on any day the market is open.

You can purchase short-term government bonds from any online broker that offers ETF and mutual funds. Some examples of short-term government bond funds include:

• SPDR® Portfolio Short Term Treasury ETF
• IShares 1-3 Year Treasury Bond ETF
• Schwab Short-Term US Treasury ETF™
• Vanguard Short-Term Treasury ETF
• IShares Agency Bond ETF

Overall, short-term government bonds are a stable, liquid, and low-transaction-cost investment option for those looking to invest $50 right now.

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