The stock market is inherently volatile, but its long history shows it is the best vehicle for making money. Better than buying gold, real estate, bonds or oil, investing in stocks tops all in creating generational wealth.
Fortunately, it no longer requires having money to make money. Virtually all the barriers previously erected have been torn down. There isn’t even a cost to buy or sell shares anymore. That means you can find stocks to buy with $10 and still achieve success. Buy smart and hold for the long term.
So, if you have $10 ready to invest and have money set aside for bills and emergencies, then these three stocks are companies you will want to buy now.
Joby Aviation (JOBY)
Electric flying taxis are becoming a thing and Joby Aviation (NYSE:JOBY) is angling to be one of the industry leaders. One of the frontrunners in the electrical vertical takeoff and landing (eVTOL) space, Joby has aircraft in development and being tested. The company already gained compliance with many of the regulations the Federal Aviation Administration (FAA) requires of eVTOL players.
It is also noteworthy the FAA is encouraging this new form of flight instead of hindering it. Regulators have worked with Joby and other eVTOL companies to create safety rules without stifling innovation. JOBY stock also has backing from Toyota, Delta Air Lines and Uber. Joby says it wants to be the Uber of the flying taxi industry.
Yet, buying JOBY stock is a risk. It has no product, service, or revenue yet. The eVTOL company is a development stage company trying to establish an industry that doesn’t exist. Yet Joby has significant financial support from companies believing in its potential. That’s not nothing and for a risk-tolerant investor, it could be an exciting stock to buy with only $10 to put to work.
Melco Resorts & Entertainment (MLCO)
Macau, China, was once the global capital for gambling, far outstripping Las Vegas. Then Covid struck, and draconian lockdowns decimated the casino industry. Melco Resorts & Entertainment (NASDAQ:MLCO) will rise from the ashes.
What many might not realize is how long Beijing imposed restrictions on travel. Long after the U.S. and even Europe were back to business, China kept grinding its people with restraints. The casino industry drastically changed afterward. Casinos used to rely upon wealthy VIP gamblers for the bulk of their wealth, but now the mass market—the average tourist from the mainland and elsewhere—is the primary focus.
Although the travel restrictions make year-over-year comparisons difficult, Melco is slowly on its way back. Total operating revenue was $2.2 billion year-to-date compared to just $726.7 million in the prior year. The casino posted $100 million in operating profits versus a year-ago $345 million loss. Admittedly, Melco is behind its peers in returning to net profitability but solid growth is expected long-term.
The resort operator’s biggest strength lies in the very profitable premium mass market. With new projects underway in the city, including two new hotel towers, Melco Resorts will once more be a premium destination for gamblers to Macau.
Warner Bros Discovery (WBD)
Warner Bros Discovery (NASDAQ:WBD) has struggled daily since becoming a publicly traded company. Shares lost a third of their value over the past year as its streaming platforms sought relevance amid glut of services. It also chose to kill off its recognized HBO brand in favor of the more generic Max name. Yet, there is good reason to believe in a rebound from this low point.
The entertainment company just announced a streaming sports joint venture with Disney (NYSE:DIS) and Fox (NASDAQ:FOX)(NASDAQ:FOXA) to debut this fall. It will combine 14 sports networks and several sports leagues into one destination. Although few financial details have been released, Fox says the JV will target the 50% of households without a pay-TV subscription instead of being an alternative to those that do. They see these “cord never” households as a rich, low-risk opportunity.
Of course, Warner Bros Discovery is more than just about streaming. It possesses successful and lucrative movie studios, broadcast outlets and varied distribution networks. While the moviegoing public has been in the midst of a transition since the pandemic, WBD stock should benefit from its ability to generate substantial cash flows.
Shares are trading at fire-sale prices. They go for just a fraction of sales and the company’s book value. It also sports a bargain-basement price-to-free cash flow of just 4, making WBD stock look cheap. It’s one worth scooping up now and holding onto long-term.
On the date of publication, Rich Duprey held a LONG position in WBD stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
