2 Monster Stocks to Hold for the Next 20 Years

Buying and holding shares of growing companies can help you multiply your savings. While some of the best investments may not yield large gains initially, the effects of compound interest can create monster gains over decades. That said, here are two growth stocks that could deliver monster returns over the next 20 years.

1. Amazon

Amazon (NASDAQ:AMZN) has grown into a dominant business across e-commerce and cloud computing. It's one of the most valuable companies in the world with a $2.4 trillion market cap, but it still offers attractive long-term return potential.

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Amazon's cloud computing business generated $11 billion in operating income last quarter, compared to the company's total operating profit of $21 billion. The growing profit contribution from the cloud business has been a major catalyst for the stock's run in recent years. But investors are underestimating the value of Amazon's core retail business, especially as management focuses on reducing fulfillment costs to boost retail margins.

Amazon's online retail business can grow for a long time. It took the global e-commerce market more than 25 years to hit $6 trillion in sales. But online retail spending only makes up 15% of all retail sales in the U.S. Statista projects annual e-commerce sales to hit $8 trillion by 2027.

Meanwhile, management has been working on improving margins, but there is still a lot it can accomplish on this front. Amazon's improving efficiency is most evident in its international segment, where it turned a year-ago loss into an operating profit of $1.3 billion in the fourth quarter 2024. As Amazon continues to expand same-day delivery and use more robotics to automate the fulfillment process, it can further reduce costs and grow profits faster than sales.

The stock continues to trade within its historical valuation range on the basis of price-to-sales (P/S) and price-to-cash flow. This indicates the stock is still fairly valued and should deliver returns in step with the underlying business over the long term.

2. Roblox

Roblox (NYSE:RBLX) is a popular entertainment platform where millions of people can play games and interact with others. The stock is up about 54% over the last year and could deliver explosive returns over the long term.

Revenue grew 29% to reach $3.6 billion in 2024, with daily active users climbing to 85 million in Q4, up 19% year-over-year. Most notably, the platform reported even stronger growth in Japan and India, indicating a tremendous global opportunity.

Roblox relies on user-generated content, where content creators are incentivized to build engaging experiences by earning developer exchange fees. As more engaging experiences come to the platform, it attracts more users and creates a strong cycle of growth.

The platform's growing player base is opening up opportunities to diversify its revenue in advertising. It is starting to have success attracting major brands, including Amazon and e.l.f. Beauty, that have bought ads on the platform.

Roblox should also continue to widen the appeal of its platform as technology becomes more advanced. For example, management sees the integration of artificial intelligence (AI) features to enhance player interactions and content creation. AI will lead to new experiences on the platform that could have a big impact on future growth.

The stock is trading at a P/S multiple of 12, which is within its recent range over the last three years. Investing in a platform where more young people are spending time could to lead to monster returns over the next 20 years.

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• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $361,466!*
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• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $558,625!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Learn more »

*Stock Advisor returns as of February 3, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Roblox, and e.l.f. Beauty. The Motley Fool has a disclosure policy.