If you are looking for the best stocks to invest in on the Cash app, this blog is for you.
Thanks to investing platforms like the Cash App, stock investing has become easier than ever. This user-friendly app allows individuals to invest in the stock market and engage in the stock market.
Cash App, owned by Block Inc.(NYSE: SQ) allows individuals to find the best stocks and save up for retirement via smartphones. However, not all stocks are worth your time. We have compiled a list of the best cash app stocks in 2024 to start investing and diversify your portfolio,
Let’s get started.
Best Stocks to Buy on Cash App
The stock market is unpredictable and volatile. Prices and market trends can change in the blink of an eye. This is why, we have created this list to identify the best cash app stocks that you can invest in for higher profits and minimal risks.
Alphabet Inc. (NASDAQ: GOOG)
Alphabet, the parent company of Google is the world leader in online advertising and one of the biggest tech companies. The company allows businesses to promote their products and services on the Google search engine and YouTube, the video streaming platform. Lately, Google has decided to initiate cost-cutting measures to expand profit margins.
Apple Inc. (NASDAQ: AAPL)
Apple is a tech giant and is renowned for products like the iPhone, iPad, Macbook, wearables, and other products. It enjoys huge profits primarily from its iPhone and Macbook segments. The company is close to a valuation of $3 trillion and is Warren Buffet’s largest holding.
In Q1 of 2023, Apple’s board authorised a $90 billion stock buyback. With experienced investors like Buffet trusting Apple, it is a safe long-term investment for an average investor and one of the best stocks to buy on Cash App.
Shopify Inc. (NYSE: SHOP)
Shopify is a Canadian e-commerce company that helps small businesses and enterprises set up online stores. It also operates the payment platform, Shopify Payments which allows store owners to accept payments from customers without relying on third-party platforms.
Shopify’s share prices rose to never-seen-before heights in 2021 before crashing in 2022. However, Shopify made a sustained recovery and reported a profit in the first quarter of 2023. It sold off its logistics business and has shares up by over 70% to date.
NVIDIA Inc. (NASDAQ: NVDA)
NVIDIA is a semiconductor manufacturing company that is riding the waves of the AI boom. AI tools need custom-made AI chips to function and NVIDIA is one of the largest producers of semiconductor AI chips.
In 2023, NVIDIA’s share prices have tripled and the company has a valuation of over $1 trillion, making it one of the best cash app stocks to buy.
Visa Inc. (NYSE: V)
Visa is a prominent stock that investors use to gauge the performance of the market. The credit card company is highly profitable and records a profit margin between 45% to 55% in most quarters. Moreover, the company also pays a quarterly dividend that has more than doubled from 2018 to 2023.
The compound annual growth rate(CAGR) for the dividend is a whopping 19.04%. It is undoubtedly one of the best stocks to invest in the Cash app.
Amazon Inc. (NASDAQ: AMZN)
Amazon Inc. operates many businesses but the headliner is its e-commerce platform. It has dipped its toes in various sectors like a cloud-based platform(AWS), streaming platforms(Amazon Prime), music streaming(Amazon Music), and e-commerce(Amazon.com).
While the company is largely known for its e-commerce platform, most of its company profits come from Amazon Web Services(AWS).
Read Also:- How to Maximize Your Tax Returns/Refund?
Bank of America Corp. (NYSE: BAC)
The Bank of America is the second-largest bank in the USA. It is deemed by the Federal Reserve as “too big to fail” and was a big winner during the Silicon Valley Bank failure.
If you are looking for the best Cash app stocks to buy, Bank of America is a safe ban stock that provides more surety than regional banks. It also offers a 3% dividend yield.
Adobe Inc. (NASDAQ: ADBE)
Adobe is a world leader in creating and maintaining software products that allow businesses to increase their productivity. Recently, the company dived into the AI bandwagon to attract new customers.
Their newest launch, Firefly is a huge hit that allows customers to generate images with AI tools.
Broadcom Inc. (NASDAQ: AVGO)
Broadcom Inc. is another semiconductor manufacturer that has benefitted from the rising adoption of artificial intelligence tools. Much like NVIDIA, Broadcom also produces AI chips and semiconductors for smart devices.
However, the company has a better price-to-earning rate than NVIDIA. Moreover, it also offers a 2% dividend yield. The company has healthy profit margins which have facilitated generous dividends hikes. If you want to invest in a semiconductor stock, Broadcom is undoubtedly one of the best stocks to buy on the Cash app.
Airbnb Inc. (NASDAQ: ABNB)
Airbnb Inc. is an American company that operates an online marketplace for long-term and short-term homestays. It allows hosts to list properties and housing units on the app to accommodate guests.
The company earns a profit share on each sale without having to own any of these properties. It is a profitable company and one of the best Cash app stocks to buy.
These are the top 10 Cash App stocks to buy for higher profits and diversification of your portfolio.
Important Factors to Consider Before Investing in Cash App Stocks
Here are some factors to consider when choosing the best stocks to invest on the Cash app.
Company Information: Evaluate company information like financial health, debts, growth potential, market cap, and stability. Additional factors include revenue, earnings, and debt-to-equity ratio.
Industry Trends: Make sure to study the active and upcoming trends of the sector in which the company operates. If you are investing in a tech company, industry trends like AI are the most popular. Look for sectors that show innovation and growth potential. Identifying emerging trends and capitalizing on them can help you make a fortune.
Market Cap: The company’s market size, which is the total value of its shares is an important factor to consider. Large-cap stocks are stable but grow slowly. On the other hand, mid and small-cap stocks offer higher returns but are riskier.
Dividends: Companies that pay dividends are a great option for a regular income. Before investing, check if the company pays dividends to shareholders and what is the historical dividend growth.
Pros and Cons of Buying Stocks Through Cash App
Here are some pros and cons to consider before investing in stocks on the Cash app.
Pros
- It is a convenient way to invest in stocks. Just open the app, select the stocks, and buy.
- Zero hidden charges or commissions for buying and selling stocks.
- Cash App also offers fractional shares, meaning you can buy a portion of a stock instead of a whole stock. This is particularly helpful for beginners who are on a budget and can’t afford a whole stock.
Cons
- Cash App trading platform is designed for beginners so you won’t find advanced features like technical analysis tools, research reports, etc.
- The customer support is lackluster when compared to other competitors.
Final Words
When investing in stocks on the Cash app or any other online platform, it is important to conduct thorough market research and analyze growth opportunities. While there is no single “best stock” that will make you rich, considering important factors and carefully planning your investments will help you earn a stable income through stock investing. And it is important to remember that investing is a risky venture and portfolio diversification will protect you from market volatility.
These are the best Cash app stocks to buy. There are many other options, but these 10 stocks will give you a starting point.
Frequently Asked Questions(FAQs)
Ans. Cash app and Robinhood offer an easier way to invest. If you are a beginner investor, you might benefit from the user-friendly interface of the Cash app. However, if you are looking for advanced investing features like analysis tools, Robinhood is the best option for you.
Ans. Yes, Cash app is a safe stock investing platform that uses data encryption and multiple security checks to keep your account and information safe. Users also receive push notifications when their account has any activity, making fraud detection a lot easier.
Ans. Cash app users can deposit funds through their bank account. Once you have cash in your app account, you can access your brokerage account to buy stocks.
