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Coronavirus 2020: Where to Invest $500 Right Now

By Rick Munarriz – Jun 21, 2020 at 7:00AM

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Online retail, visual search, and in-home fitness are ripe for your next investment.

There's no amount of money that is too small to build out your stock portfolio these days. With more and more brokers offering fractional and slices of shares, you can stake your claim in some of the market's most exciting appreciation opportunities for as little as $5. You can spread your money around even more if you have $500 to invest. 

Amazon.com (AMZN -3.01%), Pinterest (PINS -2.67%) and Peloton (PTON -0.93%) are three stocks that have the right ingredients to outlast this still very unpredictable coronavirus crisis. Let's go over the reasons you might want to consider buying into these growth stocks with the $500 you're ready to invest. 

A roll of hunder-dollar bills tied in a green ribbon.

Image source: Getty Images.

Amazon.com

The world's leading online retailer is usually not a consideration for investors who don't have a lot of money to put to work on Wall Street. It's one of the only three U.S. public companies with a market cap north of $1 trillion, and the stock's price of roughly $2,675 heading into the new trading week makes it a challenge for someone with less than a fifth of that mount to invest. 

Thankfully, we live in times with growing access to fractional shares, and even after hitting another all-time high earlier this month it's probably not too late to buy into Amazon. Hesitant investors thought Amazon was overpriced at the start of 2020, yet here we are with a market-thumping 45% surge year to date.

Amazon is killing it right now. Home delivery of goods and even grocery staples helped revenue growth accelerate to 26% in its latest quarter -- Amazon's headiest top-line increase since the summer of 2018. Amazon also has the shelter-in-place need for digital escapism on lock with the streaming video, music, gaming, and reading content it has available. In short, Amazon has become the quintessential all-weather stock.

Pinterest

The COVID-19 crisis is finding a lot of people flocking to Pinterest. The visual search platform is loaded with recipes, merchandise reviews, and new ideas for everything from interior decorating to other crafty diversions. Its audience has expanded by 26% over the past year, clocking in with 367 million users at the end of the first quarter. 

Pinterest's top line struggled in the early days of the coronavirus setback. Revenue growth slowed to 35% in the first quarter, and Pinterest has warned that revenue declined 8% in April. Advertisers naturally froze spending when consumers were hunkering down. Things should be improving these days. Marketers know that folks still need to be reached, and Pinterest has juicy target demographics of its largely female audience with enough discretionary income to pursue new crafts and hobbies. 

Peloton

Wellness has been a challenge in the pandemic, and in-home fitness is at the perfect intersection where a fear of returning to the local gym meets the poor eating habits that we've collectively developed during the pandemic. Peloton has been the high-profile leader in this market, growing its based of connected-fitness subscribers by 94% to 886,100 fitness buffs over the past year.

The bikes and treadmills aren't cheap, and the same can be said about the monthly subscriptions. However, with a safe and in many cases superior experience to in-studio spinning classes and workout sessions Peloton's popularity is exploding. The midpoint of its revenue guidance for the current quarter calls for revenue to soar 128%, almost doubling from the still impressive 66% surge it posted in the first quarter. With churn rates at historic lows, Peloton has established itself as one of the best IPO stocks of the 2019 class of debutantes.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rick Munarriz owns shares of Peloton Interactive and Pinterest. The Motley Fool owns shares of and recommends Amazon, Peloton Interactive, and Pinterest and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$113.78 (-3.01%) $-3.53
Pinterest Stock Quote
Pinterest
PINS
$22.59 (-2.67%) $0.62
Peloton Interactive, Inc. Stock Quote
Peloton Interactive, Inc.
PTON
$8.51 (-0.93%) $0.08

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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