The stock market provides an opportunity to invest your savings in the world’s best businesses. Investing in a well-chosen portfolio of growth stocks can pave the way for a happy retirement. Here are two quality growth stocks that can grow your savings exponentially over the coming decades.
Investing in well-known brands is often a smart move. If you are one of the millions of Prime members who shop regularly Amazon (NASDAQ: AMZN )You already understand why this is a great business. It has used its broad selection, competitive pricing and fast shipping to capture its 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 that opportunity suggests that Amazon can grow over the long term.
Are you missing the morning scoop? wake up with Breakfast news to your inbox every market day. Sign up for free »
It’s certainly not too late to start investing in Amazon. Shares have more than doubled in the past five years and continue to hit new highs as the company improves its profitability and scales its cloud-services business. In the third quarter, Amazon said its net sales rose 11% from the year-ago quarter, while lower costs helped net income rise 55%.
Meanwhile, Amazon’s Cloud-services The business continues to win new business from organizations migrating their data systems from on-premise servers to the cloud. Amazon Web Services (AWS) provides customers with everything they need to take advantage artificial intelligence (AI) Technology, which is helping businesses optimize processes and innovate faster for their customers. AI is a big reason why AWS reported accelerating revenue this year and should continue to be a key driver of the stock’s returns, as AWS generates most of Amazon’s profits.
Amazon stock could deliver double-digit annual returns for many more years. It is still chasing a growing e-commerce market, while the public cloud market is expected to reach a value of $1.8 trillion by 2029, according to Statista.
stop (NASDAQ: ROKU ) Another familiar name to the more than 85 million households that use the streaming platform. The stock was expensive heading into a brutal year for the ad market in 2022, leading to weaker financial results for Roku’s ad-driven connected TV platform. But those headwinds are behind it, and with the stock trading at a discounted valuation, investors may be buying shares at prices that could undercut its long-term growth opportunities.
