Where Can You Invest $1000 Right Now?

Hi, I’m Rex Moore, and I’ve been researching stocks for the Motley Fool for almost two decades.

I’m pleased to inform you about an industry with tremendous potential and stock you could like. Let’s imagine I’m willing to take on a little more risk, looking for a stock that has the potential to gain five-fold or more in the following decade. Remember that long-term rewards are where our Foolish investing philosophy finds them.

Of course, I’ll be looking at industries that change the world. It’s a market that’s expected to hit $12 trillion by 2035. One that’s been compared to the dot-com boom, the 2017 Bitcoin boom, and even cannabis stocks. I’ll explain the industry, why it’s unique, and my top stock recommendation.

But first, this video is sponsored by Motley Fool Stock Advisor. Stock Advisor’s suggestions have beaten the market by four to one since 2002, with an average return of 612 percent. Stock Advisor provides you two new stock selections every month and teaches you the Foolish approach of investing, which is to focus on the long-term ownership of outstanding companies.

This chart shows the trend I’m referring to. Every 10 years or so, a great technological advance practically changes the world, creating a massive profit opportunity for early investors who make the correct choices. I think it’s occurring again.

The industry I’m referring to is 5G, which has been discussed for some time. I don’t blame you if you’re skeptical. You may hear about the early phases of these technologies and witness much buzz. But you don’t see the benefits for years. For example, the excitement around electric automobiles and self-driving cars can sometimes dull individuals. But if you’re an investor, that’s good since you should now be diving deeper to see what all the 5G buzz is about.

I’ve been to several events and met with many companies throughout the years. In 2020, this technology was omnipresent. It was everywhere I looked, not just in a 5G-focused segment of the show. Instead, it was in VR, AR, medical tech, IoT, and, of course, cars. These and other sectors are counting on 5G’s rapid speed to boost sales. You won’t see many companies doing this until they believe the dollars are there to support them.

According to Qualcomm (NASDAQ:QCOM), the value of goods and services provided by this new technology will reach $12.3 trillion. That’s why this chart now speaks volumes to me. So, stocks? One reason I think now is a good moment is because we have a huge catalyst. While you may have heard about 5G previously, it is now finally becoming widespread.

But in what? You could do a lot worse with a thousand bucks than buy an Apple (NASDAQ:AAPL). Because it’s a stock choice, it’s recommended in many of our services. But Apple and these others are huge. The kind of growth we’re looking for here tends to be harder to come by at the world’s largest companies. But, as I stated before, I wanted to be a little more daring with my stock pick.

So I really like Twilio (NYSE:TWLO), ticker TWLO. As 5G delivers more data to the cloud, it expands the possibilities for communication between people and things. Twilio stands to gain a lot from this. It’s difficult to summarize what Twilio provides in a few words, but it can help facilitate communication between devices or people. Anonymous communication is a common use. That includes allowing consumers to trust communication methods without having to provide personal information like phone numbers. For example, texting after meeting on a dating service. Twilio also helps enable alerts and notifications. Twilio assists with user security between devices, authentication, and validation.

Twilio’s marquee customers are Amazon (NASDAQ:AMZN) Web Services and Facebook (NASDAQ:FB) WhatsApp. With Twilio, Uber (NYSE:UBER) can instantly update riders and drivers without having to divulge their phone numbers. Twilio even helps Netflix deliver SMS and push notifications for password resets and essential updates. Twilio’s mission is to become a part of every developer’s toolkit. Big ideas typically start small, and developers need the freedom and resources to iterate and evolve. Twilio is partnering with some of the most major 5G companies.

Twilio has a wide moat, as stock geeks describe it. It has significant switching costs, making it difficult for competitors to enter. Customers adore them and find it difficult to switch to another provider of similar services. That’s what I like. Twilio is a stealth stock. Few people know about it. Twilio isn’t a 5G firm, yet I bought it in 2019. It worked for me. I believe it will remain a global leader in a vital industry. You’ll need to be able to ride the ups and downs and retain a long-term perspective on this and any businesses in which you invest.

Thank you for joining us.