Best Stocks to Buy With $100: Arm Holdings (ARM)

Investing doesn’t always require a massive capital influx. With just $100, you can start building a robust portfolio that may grow over time into a substantial nest egg for retirement. Here are three promising stocks to consider:

1. Arm Holdings (ARM)

• Type: Semiconductor Design
• Recent Performance: Stock surged 48% after strong Q3 earnings.

Why Invest in Arm Holdings:

• AI Architecture: Arm is experiencing significant uptake for its next-gen AI architecture, Armv9.
• Royalty Revenue: Arm’s Q3 earnings showcased soaring royalty revenue, driven by its purpose-built architecture.
• Market Share Gains: Securing market share in cloud servers and with auto manufacturers, along with a resurgence in the smartphone market.
• Security and AI Focus: Armv9 architecture, released in 2021, is built with a focus on security and artificial intelligence.

Financial Snapshot:

• Q3 Revenue: Not specified.
• Q3 Net Income: Not specified.
• Market Cap (2024): $Not specified.

Investment Recommendation: While the recent surge in Arm Holdings stock is noteworthy, it’s advisable to monitor the post-earnings euphoria. Arm’s strong presence in AI and potential growth in cloud servers make it a compelling choice for investors looking to start with a $100 investment.

2. Roblox (RBLX)

Overview:

• Type: Online Gaming Platform
• Recent Performance: Enjoyed 22% growth in global daily active users (DAUs).

Why Invest in Roblox:

• User Growth: Roblox experienced 22% growth in global DAUs, with significant expansion in the U.S. and Canada.
• Revenue per DAU: Revenue per DAU rose 3%, with a notable 14% gain in Europe.
• Demographic Expansion: Attracting an older audience, with the 13+ demographic growing 28% and now constituting 58% of DAUs.
• Stable Business Expansion: Solid business expansion and financial indicators make Roblox a favorable option.

Financial Snapshot:

• Q3 Revenue: Not specified.
• Q3 Net Income: Not specified.
• Current Stock Performance: Gained 85% since last September, approaching its all-time high.

Investment Recommendation: Roblox’s user growth, increasing revenue per user, and expansion into older demographics position it as a promising investment. With $100, investors can tap into the potential growth of this online gaming platform.

3. Snowflake (SNOW)

Overview:

• Type: Cloud-Based Analytics
• Recent Performance: Stock is up 12% in 2024 and 40% over the past year.

Why Invest in Snowflake:

• Data Warehousing: Snowflake specializes in warehousing and providing tools for data analytics.
• Multi-Cloud Offerings: Allows customers to access data across public clouds like AWS, Google Cloud, and Azure.
• AI Integration: Utilizes AI to enhance insights, and recent acquisitions bolster advanced AI and deep learning capabilities.
• Cloud Migration Trend: Data migration from physical data centers to the cloud positions Snowflake for continued relevance.

Financial Snapshot:

• Q3 Revenue: Not specified.
• Q3 Net Income: Not specified.
• 2024 Stock Performance: Up 12%.

Investment Recommendation: Snowflake’s position in cloud-based analytics, multi-cloud offerings, and AI integration make it a strong contender. With $100, investors can participate in the growing demand for data analytics and cloud services.

In conclusion, while $100 may seem like a modest starting point, these stocks offer potential for growth over time. As always, it’s crucial to conduct further research and consider your risk tolerance before making investment decisions.