Stocks to buy

The Top 3 Stocks to Buy for Under $1,000 in June

If you are new to the stock market, you might be intimidated by the mere number of stocks available. While not all stocks are ideal, a few can steadily generate returns if held for the long term. When it comes to investing, there is no minimum amount you need to have to start your journey. If you want to start building your investment portfolio with $1,000, you have hundreds of options.

These three companies have had an excellent 2024 so far. With zero-commission brokerages, it is now possible to put every penny to work. Let’s explore three stocks to buy for $1000 this month for steady capital gains in the long term.

Nvidia (NVDA)

Microchip GPU with Nvidia logo in the background. High quality photo. NVDA stock

Source: Rokas Tenys / Shutterstock.com

One of the top tech stocks to buy for $1000 in the current market situation, Nvidia (NASDAQ:NVDA) became the most valuable company last week with a market cap of $3 trillion. Its journey is nothing but impressive. Its recent stock split has made the stock affordable for many investors and it is trading for $120 as of Monday. On its way to $150, Nvidia has seen the stock rally after each quarterly results. 

NVDA stock has climbed almost 200% in the past year which led to the stock split decision. The company has already proved that it is a strong growth machine and the soaring demand for artificial intelligence (AI) chips will continue to drive growth.

Also, Nvidia is growing stronger and signing contracts with governments across the world for its graphic processing units (GPUs). Its first-quarter revenue jumped 262% year-over-year (YOY) to $26 billion. And the data center revenue was up 427% to hit $22.6 billion. The AI-driven sales surge will continue throughout the year. 

When it comes to artificial intelligence (AI), nobody wants to be left behind. Organizations and governments are pouring money into the industry. Besides AI chips, the company has a presence in the automotive and robotics industry along with multiple partnerships with automakers.

Therefore, any dip in Nvidia is short-lived. Investing your $1,000 in the stock will set you up for steady gains in the long term. 

Spotify (SPOT)

Close up view of a smartphone with Spotify (SPOT) logo on display. Laptop and headphone on background. New technology, social media, network, liquid music concept.

Source: Fabio Principe / Shutterstock.com

Up 68% year-to-date (YTD), Spotify (NYSE:SPOT) has been roaring higher since the start of the year. It was trading at $188 in Jan and is exchanging hands for $314 as of Monday. A leading audio streaming platform, Spotify reported a record first quarter with its gross margin reached 27.6%.

In addition, the company reported a record income of 168 million euros using cost control measures like headcount reductions. It is steadily working on the expansion of the content library and improving user experience. With 239 million global subscribers, SPOT is up 14% YOY despite a price hike in key markets. 

Moreover, Spotify enjoys high flexibility when it comes to investing in the company’s growth. It generated a positive free cash flow of 207 million euros and ended the quarter with a cash balance of 4.7 billion euros. This allows the company to continue investing in its business operations. 

Recently, Spotify announced that it will hike the subscription prices again in the U.S. In response to an announcement. KeyBanc Director Justin Patterson stated that the consumers’ willingness to absorb a price hike is very strong. This speaks about the platform and the value it offers the users. Also, the company launched a new basic, lower-priced plan for users in the U.S.

SPOT holds a very strong position right now, and its upward rally could continue. Over a dozen analysts have a buy rating for the stock. 

Netflix (NFLX)

Netflix (NFLX) logo displayed on smartphone on top of pile of money.

Source: izzuanroslan / Shutterstock.com

Streaming giant Netflix (NASDAQ:NFLX) is a household name. Up 46% YTD, the stock is trading for $669 as of Monday. It’s been moving higher since the end of April.

Despite strong quarterly results, the stock dipped due to the investor disappointment about the company’s decision to no longer disclose the subscriber numbers. However, the dip was short-lived, and Netflix soon took off. It ended the first quarter with 4.84 million subscribers.

As one of the largest streaming companies globally, Netflix invests a lot of money in creating new and fresh content. This pays off in higher subscribers and higher revenue. It enjoys a first-mover advantage and has seen unstoppable growth over the past 12 months.

To remain ahead of the competition, NFLX is expanding into live entertainment and sports. It has signed a $5 billion deal for the streaming of TV show Raw in 2025. It is soon to strike a deal to air NFL games this coming winter holiday season. Besides churning out new content throughout the year, Netflix will benefit from investing in live content. 

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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