10x Best eToro Stocks for Beginners | Happy Investors

10x Best eToro Stocks for Beginners | Happy Investors

Dear Happy Investor, what are the best eToro stocks ? The answer lies in extensive research on stocks with strong fundamentals and short-term momentum. But if you're a beginner, what stocks are best to buy at eToro? Basically, there are a few important principles. For example, you should always do research and only buy companies that you fully understand. Also, you want to buy her at a good price. 

In this article, we share inspiration to the best eToro stocks for beginners. The term "best" indicates the right balance between risk and return. Therefore, this list contains only well-known, established companies with a proven and growing earnings model. This lowers both the risk and potential return, which is more suitable for beginners. 

But beware: if you do not understand stock analysis, it is better to choose for ETF investing (rather than individual stocks). 

1. Amazon

Amazon is the world’s largest online retailer, with a market cap of $1.1 trillion. It is also a leader in cloud computing, voice-controlled devices and artificial intelligence. The company has more than 100 million active users on its platform — including both consumers and businesses — and it offers more than 500 million products in over 200 countries worldwide through its websites, according to Amazon's website.

Amazon Web Services (AWS) is the world’s largest cloud computing platform by revenue. AWS hosts millions of applications for large companies like Capital One and Netflix as well as small startups that use AWS to scale their business operations rapidly without having to worry about managing infrastructure costs themselves. 

Amazon's stock has been incredibly volatile in recent times and investors need to take into account all the risks that go along with investing in a company like this at this time. Still, Amazon may be among the best eToro stocks for beginners. The stock is currently down -40% to its highest point in 2018. Given the prevailing bear market and Amazon's financial valuation, the stock price may fall even further.

2. Apple

A unique company with high quality, Apple is still among the best eToro stocks for beginners. Apple has long been a high-profile technology company, and its shares now more attractive after a recent price drop. Apple has long been a high-profile technology company, and its stock is no different. Apple is the world's largest company by market cap and remains one of the most popular in the world.

However, its stock price can be affected by consumer trends—sometimes good and sometimes bad. For example, when iPhone sales dropped significantly in 2018 due to lower demand for iPhones that were more than two years old at the time, Apple’s stock took an immediate hit (the same thing happened in 2015). This shows how volatile this type of tech company can be when it comes to changes in consumer behavior.

But Apple has proven its ability to stay on top of the competition. While nobody knows what the future holds, one thing is for sure: Apple has built up a loyal customer base and will continue to offer innovative consumer electronics for years to come. Also, they have built an impressive ecosystem with strong diversification. The stock price is currently down 13%. The financial valuation is still on the higher side, but on the other hand you always pay more for high quality. Apple is among the best eToro stocks for the long term as far as we are concerned.

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3. Netflix

Netflix is a pioneer in the streaming market. It has a strong brand name, with over 100 million subscribers globally, and a large library of exclusive content. The company has been consistently growing its subscriber base at around 6% annually over the last few years. 

In addition, Netflix has also invested heavily in creating original content which has helped it achieve consistent growth in revenue per paying subscriber. This makes it potentially one of eToro's best stocks since it offers opportunities for future growth.

However, Netflix has some serious issues ahead in relation to earnings growth. Revenue growth is slowing down already, and Netflix is not making much money. Even after the brutal price drop of -73% their stock still include severe down-side risk. Will they prove us wrong with higher than expected future profits? Less suitable for beginners, but if Netflix applies the right strategy it could become one of the best eToro stocks.

4. Microsoft

Microsoft is a global tech giant with a market cap of $2 trillion. It is one of the most well-known tech companies in the world and has been around since 1975 when it was founded by Bill Gates and Paul Allen.

Microsoft (MSFT) has been paying dividends since 2003, making it one of the longest-lasting dividend paying companies out there today. In addition to its great track record as an investment option, Microsoft also offers investors exposure to many different industries such as mobile phones, gaming consoles, cloud computing services etc. 

Microsoft is down about -20%. The financial valuation is still on the higher side. The possibility of further price decline is plausible in a continuing bear market. The more she drops, the more interesting. Therefore, keep an eye on her under the heading of best eToro stocks for beginners. 

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5. The Walt Disney Company

Disney is the largest entertainment company in the world. It owns ABC, Marvel and Star Wars, along with theme parks and an extensive film library. Disney’s businesses include studios such as Pixar, Marvel Studios, Lucasfilm Ltd., Walt Disney Animation Studios (WDAS) and Walt Disney Pictures; television networks such as ABC Television Network through its ownership 50% share of A&E Networks; radio networks including ESPN Radio; publishing units including Hyperion Books; a YouTube premium channel through its acquisition of Maker Studios in 2014 for $500 million.

Disney acquired 21st Century Fox's film studio assets on March 20th 2019 for $71 billion dollars which includes all its subsidiaries like FX Networks & National Geographic Partners.

Currently, the company is facing temporary problems in the aftermath of covid-19. For example, Chinese parks are closed for the time being. Also, competition in streaming services is increasing sharply. These events are depressing future profits. The stock price is currently at -45% and lower than the 2015 price level. Something tells us that the stock price could fall further. Below the $90 price level, DIS could be among the best eToro stocks for beginners. 

6/7. Coca-Cola Company & PepsiCo

The Coca-Cola Company is the world's largest beverage company and retailer. The company makes, markets, and distributes more than 500 brands of nonalcoholic beverages including sparkling soft drinks, waters, juices and juice drinks, sport drinks, energy drinks, ready-to-drink teas and coffees; and dairy products such as plant-based milks.

It also produces innovative products like Dasani water which comes from a reverse osmosis filtration process that removes impurities from tap water before it gets bottled up for consumers to drink. 

Coca-Cola is among the best eToro stocks for beginners because of its long-term potential. It is a strong company with sustainable competitive advantage. The earnings model can grow purely on the basis of increasing population growth and market penetration. Of course, there is competition and trends in consumer behavior can be detrimental. Also, the financial valuation is on the high side from a historical perspective. The competitor PepsiCo is also one of the best eToro stocks (with dividend).

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8. Facebook (Meta)

Facebook, Inc. (Meta) is a global provider of social networking services and a leading Internet technology company. The stock has performed extremely well in the past. Facebook has also been one of the best performers in its industry and even outperformed the NASDAQ Composite Index from July 2018 to February 2019.

This uncertainty has caused Facebook to fall by more than -50%. Its current market value is around $500 billion dollars. The decline is justified though because of major changes in IOS and structurally increasing competition. In the process, the Facebook platform seems outdated. But in the long run Facebook can be among the best eToro stocks for beginners, if its profitability continues to increase.

9. JP Morgan Chase & Co.

JP Morgan Chase & Co. is the biggest bank in the USA, with assets of over $3 trillion. It also has a leading investment bank and asset management operation. JP Morgan Chase & Co. was founded in 1871 by J P Morgan (whose grandson J P Morgan Jr went on to run the firm). It started off as a commercial bank but soon became involved in investment banking too when it helped finance railroads during America’s westward expansion and then aided European governments at the end of World War I - both of which led to rapid growth for JP Morgan Chase & Co..

JP Morgan is currently down about 30%. The current financial valuation seems attractive, with a nice dividend of 3.5%. The question is what too persistent inflation and interest rate policies mean for the profitability of this company. Currently, it is among one of the best eToro stocks for beginners within the banking industry. Note that there are many other interesting banks with attractive stocks. 

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10. Alphabet Inc. (Google)

Alphabet Inc. (Google) is one of the best stocks on eToro to buy in 2022. The company's market share is growing, and it's one of the 30 stocks in the Dow Jones Industrial Average. Google has been around since 1998, when it was founded by Larry Page and Sergey Brin while they were students at Stanford University. 

Since then, Google has grown into one of the most popular search engines in the world, with over 4 billion active users per month and over 3 billion Android devices activated globally as of 2022.

You see why Google is a best EToro stock, as they seem very confident in its ability to shape the future. Because of this, we believe it will maintain and even continue to extend its lead.

Comments about the best eToro stocks

This article is intended for inspiration regarding the best eToro stocks for beginners. We do not suggest that these are the best investments. We do a lot of research into the best stocks that can potentially offer higher than average returns. From the above selection, only Alphabet is currently among our favorites. Other companies such as Microsoft and Apple are very strong, but have a slightly less attractive valuation. With further price decline, they are definitely among the best eToro stocks for the long term. 

Note that both macro and corporate factors can have a big impact on the price movement. A major change in regulation or technology can lead to major price declines. We have seen this happen with Facebook. Also, persistent inflation and rising interest rates are unfavorable for growth companies. Invest only with money you can afford to lose and do so according to a proven investment strategy.

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Happy Investors is all about your long-term growth, both financially and in personal development. We write about long-term investing: stocks, real estate, crypto, and alternative investments. Grow your life. Become a Happy Investor!
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