Invest in These 3 Stocks for Long-Term Gains
Amazon continues to dominate the cloud computing market with its platform AWS, generating over $10 billion in operating income. The tech giant also saw a 23% surge in advertising revenue in the last quarter, while its North America operating income increased by 47% to $7.5 billion. The company is investing heavily in infrastructure to ensure long-term growth, and is reportedly using artificial intelligence (AI) and over a million robots in operation to improve e-commerce efficiency.
In the retail sector, e.l.f. Beauty (ELF) is looking to return to growth mode through a significant move - a $1 billion acquisition of the premium skincare and cosmetics brand Rhode. Rhode, founded by Hailey Bieber, boasts annual sales exceeding $200 million with only a few products, offering a significant growth potential. e.l.f. Beauty will utilize its strong influencer network to promote Rhode, and Hailey Bieber will remain as chief creative officer for the brand, guiding future product development. The acquisition aims to increase e.l.f.'s product offerings to premium price points, and will see Rhode's debut at Sephora this fall and expansion through e.l.f.'s retail connections.
Meanwhile, in the food industry, Cava Group (CAVA) continues to thrive. The Mediterranean-inspired fast-casual restaurant chain has delivered four consecutive quarters of double-digit same-store sales gains, including a 10.8% increase last quarter. Cava's menu evolution attracts new customers and retains loyal ones, with the introduction of grilled steak driving higher check sizes. The restaurant's minimal ingredient approach leads to efficiency in customer wait times and reduced food waste, contributing to a high restaurant-level margin. Cava's expansion strategy is focused on coastal cities and is now moving into Midwest cities like Detroit, Chicago, and Indianapolis. The company's long-term goal is to reach 1,000 locations by 2032, with plans to open 64 to 68 new restaurants this year, including restaurants near me and restaurants.
