The stock market provides the opportunity to invest your savings in the best companies in the world. Investing in a portfolio of well-chosen growth stocks can pave the way for a happy retirement. Here are two high-quality growth stocks that could significantly increase your savings in the coming decades.
Investing in familiar brands is often a smart move. If you’re one of the millions of Prime members who shop regularly Amazon (Nasdaq: AMZN)you already understand why it’s such a great job. It has used its wide selection, competitive prices and fast shipping to capture share of the $6 trillion global e-commerce market, which has translated into wealth-building returns for shareholders over the past 20 years. The size of this opportunity suggests that Amazon can grow for a long time.
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It’s certainly not too late to start investing in Amazon. The stock has more than doubled in value over the past five years and continues to reach new highs as the company works to improve its profitability and expand its cloud services business. In the third quarter, Amazon said its net sales increased by 11% compared to the same quarter last year, while lower costs helped increase net income by 55%.
Meanwhile, Amazon Cloud services Business continues to win new business from organizations migrating their data systems from on-premises servers to the cloud. Amazon Web Services (AWS) gives customers everything they need to take advantage of it Artificial Intelligence (AI) Technology, which helps companies improve operations and innovate faster for their customers. AI is one of the main reasons why AWS reported accelerating revenue growth this year and should continue to be a key driver of earnings per share, given that AWS generates most of Amazon’s profits.
Amazon stock could deliver double-digit annual returns for several more years. It continues to chase the growing e-commerce market, while the public cloud market is expected to reach $1.8 trillion by 2029, according to Statista.
year (NASDAQ:ROKU) It is another household name with over 85 million households using the streaming platform. The stock has been expensive heading into a tough year for the ad market in 2022, leading to weak financial results for Roku’s ad-driven connected TV platform. But those headwinds are behind them, and with shares trading at a discounted valuation, investors can buy shares at prices that may reduce the opportunity for long-term growth.
The total advertising market is expected to grow 8% this year to reach $990 billion, according to GroupM. More of this ad spending is shifting to digital media platforms. GroupM estimates that the connected TV advertising market will increase by 20% this year to reach $38 billion. Roku is growing roughly in line with that estimate, with revenue up 16% year over year through the first nine months of 2024.
Despite the rebound in the ad market, the stock is still down 64% over the past three years. The stock’s price-to-sales (P/S) ratio is 2.8, which is reasonable if the company continues to improve margins. The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved to more than 9% in the third quarter, up from 4.8% in the same quarter last year.
As Roku continues to grow the number of households on its platform and expand its advertising business, the stock could deliver outstanding returns over the next decade and beyond.
Have you ever felt like you’ve missed out on your most successful stock buying journey? Then you’ll want to hear this.
On rare occasions, our team of expert analysts issues a “Double Bottom” stock. Recommendation of companies they think are about to emerge. If you’re worried about missing your opportunity to actually invest, now is the best time to buy before it’s too late. The numbers speak for themselves:
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Nvidia: If you invested $1,000 when we doubled your money in 2009, You will have $369,349!*
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apple: If you invested $1,000 when we doubled your money in 2008, You will have $45,990!*
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Netflix: If you invested $1,000 when we doubled your money in 2004, You will have $504,097!*
We are currently issuing “double” alerts for three amazing companies, and there may not be another opportunity like this anytime soon.
*Stock Advisor returns as of December 2, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. John Ballard He has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Roku. The Motley Fool has Disclosure policy.
2 Stocks that can create lasting wealth for generations Originally published by The Motley Fool