The stock market offers the opportunity to invest your savings in the best businesses in the world. Investing in a group of well-chosen growth stocks can pave the way for a happy retirement. Here are two quality growth stocks that can exponentially grow your savings in the decades to come.
Investing in familiar brands is often a smart move. If you’re one of the millions of Prime members that regularly shops on Amazon (NASDAQ: AMZN), you already understand why it’s a great business. It has used its extensive selection, competitive prices, and fast shipping to capture its share of the $6 trillion global e-commerce market, which has translated to wealth-building returns for shareholders over the last 20 years. The size of that opportunity suggests Amazon can grow for a long time.
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It’s certainly not too late to start investing in Amazon. The shares have more than doubled over the last 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 grew 11% over the year-ago quarter, while lower costs helped drive a 55% increase in net income.
Meanwhile, Amazon’s cloud-services business continues to win new business from organizations migrating their data systems from on-premise servers to the cloud. Amazon Web Services (AWS) offers customers everything they need to take advantage of artificial intelligence (AI) technology, which is helping businesses optimize processes and innovate faster for their customers. AI is a big reason AWS has reported accelerating revenue growth this year and should continue to be a key driver of the stock’s returns, since AWS generates most of Amazon’s profit.
Amazon stock can deliver double-digit annualized returns for several 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.
Roku (NASDAQ: ROKU) is another familiar name for the more than 85 million households that use the streaming platform. The stock was expensive going into a brutal year for the ad market in 2022, which led to weak 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 can buy shares at prices that may undervalue its long-term growth opportunity.
