Interest Rate Hikes Won't Stop These 2 Cash-Rich Growth Stocks
The Federal Reserve announced another rate increase last week. And while rising interest rates are a problem for businesses, some are in much better positions than others to weather the storm. If a business has tons of cash on its books and is generating lots of money, an increase in interest rates won't make the company a risky buy. And a couple of stocks that are among the "safest" growth-oriented investments to load up on right now include Amazon (NASDAQ: AMZN) and Johnson & Johnson (NYSE: JNJ).
Amazon is a growth beast, and it may stand to benefit from interest rate increases and declining valuations in the markets. That's because it will mean it can become cheaper for the tech giant to acquire other businesses. As of the end of September, the company's cash equivalents and marketing securities totaled $58.7 billion. And over the trailing 12 months, the company's operating cash flow has come in at just under $40 billion.
The online retail giant has come under some tough times as sales have been slowing down, and the company's expenses are on the rise (it has incurred a net loss in two of the past three quarters) as it ended up hiring more people than it needed during the pandemic.
Source Fool.com
