Scraping together enough money to invest in stocks isn't easy. Inflation is denting your purchasing power. Higher interest rates are making it tougher to pay down your debt. And the need to squirrel away some emergency savings in case an unexpected expense pops up often takes precedence over investing.
But if you've managed to build up some cash that you want to invest in the stock market, you've come to the right place. You can buy shares in the following industry leaders today for less than $1,000 -- and still have some cash leftover for all your other needs.
Netflix's shareholders have larger profits headed their way
Following its torrid growth during the early stages of the pandemic, Netflix's (NFLX -0.63%) expansion slowed as people resumed consuming other forms of entertainment. Skeptics began to question whether the streaming giant had saturated its core markets. But Netflix's recent financial results suggest that it has plenty of room to continue to increase sales and profit for years to come.
Netflix added nearly 9 million subscribers in the third quarter. It ended the period with a total of more than 247 million paid memberships. Netflix's less expensive, ad-supported plan saw its membership soar by almost 70%. The company's efforts to encourage people who previously shared plans to pay for their own memberships also contributed to the gains.
Additionally, Netflix is flexing its pricing power. It's raising the prices of some of its higher-end plans in the U.S. and key international markets. These moves should help to drive revenue per user and profit higher. Management expects the company's operating margin to rise to 20% in 2023 and as much as 23% in 2024.
Netflix's increased focus on profitability is welcome news to its shareholders. And with its earnings set to grow by more than 20% annually in the coming years, according to Wall Street's estimates, more gains likely lie ahead for investors who buy the streaming leader's stock today.
Visa can help you cash in on the digital payments megatrend
Like Netflix, Visa (V -0.23%) is well positioned to increase profit at a solid clip in the coming years. The operator of the largest credit and debit card network is benefiting from the worldwide shift toward digital commerce and away from cash transactions.
Visa is enmeshed in the global economy. Its banking partners have issued an astounding 4.2 billion cards that are accepted at more than 100 million merchant locations in more than 200 countries and territories. The fintech titan, in turn, facilitated a whopping 270 billion transactions worth a collective $14.5 trillion during the 12 months ended June 30. For its efforts, Visa hauled in over $16 billion in profit.
Visa's ubiquity bolsters its formidable competitive advantages. Powerful network effects make it difficult for the payment giant's rivals to gain ground. Consumers appreciate the ability to use their Visa cards at stores around the world. Merchants value the potential sales they can gain by accessing Visa's huge cardholder base. As these benefits drive more people to enter Visa's network, it creates a virtuous cycle that makes Visa's platform more valuable for all users.
Additionally, Visa benefits from inflation. It typically collects a small percentage of every transaction it processes, so if the dollar value of those transactions rises, so, too, should its fee income. In this way, Visa and its shareholders also stand to profit from the long-term growth of the global economy.
