The Two Best Stocks to Invest $1,000 in Right Now
Key Points
These two high-growth fintech companies are boosting revenue while delivering higher profit margins.
Robinhood's stock trading app continues to thrive, and prediction markets are shaping up to be a major catalyst.
Nu Holdings is the leading online bank in Latin America, and many of its products are gaining market share across the region.
- 10 stocks we like better than Robinhood Markets ›
A small $1,000 investment can be the start of a position that accelerates your path to retirement. Some growth stocks double in value within a few years, and others achieve the same feat within a few months.
Investors should look at a company's fundamentals before buying. It's usually a good sign if revenue and profit margins are rising over time, and these two fintech stocks check off both boxes.
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Robinhood continues to attract highly active investors
Image source: Getty Images.
Robinhood (NASDAQ: HOOD) has more than 27 million funded customers on its online trading platform, and the company hasn't peaked by any means. Its customer base increased by 7% year over year in 2025, and its average revenue per user surged by 16% year over year. It's a good mix when a company can attract more customers while simultaneously increasing the average value of each customer.
Robinhood is the type of stock that flourishes when financial markets are performing well. and investors trade stocks and other assets. Its revenue increased by 27% year over year, with stocks and options revenue surging. Crypto revenue dipped by 38% year over year due to Bitcoin's (CRYPTO: BTC) slump, but this same part of the business more than quadrupled in the third quarter, demonstrating it can pick up quickly once Bitcoin regains momentum.
The company also posted higher net income year over year, if investors ignore the one-time $424 million benefit from the fourth-quarter 2024 tax benefit and regulatory accrual reversal. The company's entry into prediction markets is another major catalyst for Robinhood's long-term growth. That segment delivered 8.5 billion event contract trades in Q4, and the 3.4 billion event contracts it traded in January show that momentum is still building.
Robinhood has more than doubled during the past five years, but it's down by more than 30% year to date. This presents an attractive buy-the-dip opportunity for what looks like a long-term winner.
Nu Holdings is the top banking solution for Latin America
Nu Holdings (NYSE: NU) is the largest bank in Latin America and is completely online. It doesn't have any physical branches, which translates into lower costs, higher margins, and more competitive products. The company serves more than 60% of the adult population in its home market of Brazil, and it is gaining traction in Mexico, Colombia, and Latin America as a whole.
The fast-growing region helped Nu Holdings deliver 39% year-over-year revenue growth in Q3 2025. The online bank added 4 million new customers to close the quarter with more than 127 million customers. The bank also has an 83% activity rate, which means most of these customers are investing, saving, and borrowing through Nu Holdings. The activity rate has remained consistent during the past year.
Multiple Nu Holdings products are growing at exceptional rates. Customer balances in credit cards and loans rose 45% year over year, while interest-earning portfolios were up 58% from a year earlier.
All this growth also came with rising profits. Net income surged by 41% from 2024, which was enough to secure a 41% net profit margin. A high-growth product line with rising margins in a hot region suggests that Nu Holdings can continue to gain.
Should you buy stock in Robinhood Markets right now?
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Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.
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