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2 Stocks That Could Create Lasting Generational Wealth – The Motley Fool

These growth companies can protect and increase your wealth for years to come.

To build lasting wealth in stocks, you need to look for companies that have plenty of room to expand over the years. Regardless of how stock prices perform in the short term, companies that grow their earnings significantly over several decades will see their stock prices grow with them.

Regarding that point, Amazon (AMZN -1.07%) and roblox (RBLX 3.39%) They have a lot going on right now. Amazon still has significant growth potential due to its leading position in the fast-growing cloud computing market. Roblox, on the other hand, is a popular interactive platform where young viewers play games and interact with other users. Let’s take a closer look at why these stocks are good long-term investments.

1. Amazon

Great selection, fast shipping, and convenience have been hallmarks of the Amazon brand for more than 20 years. This stock has become a true wealth-building investment, but investors shouldn’t underestimate the ability of great companies to continue to grow. The main reason to invest in Amazon boils down to the company’s opportunities in e-commerce and cloud services.

The company’s technological roots in building great online shopping experiences have allowed it to branch out into other lucrative revenue opportunities, such as cloud computing. According to Synergy Research, spending on cloud infrastructure totaled $76 billion in the first quarter, an increase of 21% year over year.nevertheless microsoftAlthough Azure cloud services are gaining market share, Amazon Web Services remains the leader.

Although AWS has higher margins, Amazon’s retail division remains the core of the company’s business. Amazon’s retail and related services generated $496 billion in total revenue last year, but eMarketer estimates there is still a lot of opportunity left in the $6 trillion global e-commerce market, which is poised for growth. continuing.

Analysts expect the company’s earnings per share to grow at an annual rate of 23% over the next few years.in the same way walmart Amazon is still making money for investors after 50 years as a publicly traded company, but it’s quite possible that it’s been amplifying shareholder investments for decades.

2. Roblox

Considering the video game industry is expected to grow from $211 billion to more than $600 billion by 2029, according to Statista, it’s a good idea to invest in the growth of interactive entertainment. Consistent with that estimate, Roblox has already reached 77 million daily active users and is still growing.

Stocks are trading well off their highs. The cause can be traced to high valuations after direct listings several years ago and slowing revenue growth in 2022. It’s clear that Roblox is not immune to broader economic pressures on consumer spending, but the discounted stock price is a value for growth that may look like a bargain in another decade.

Roblox offers a variety of games and experiences, such as virtual music concerts, to attract people to the platform. And they seek to earn money by offering virtual currency that is used to unlock premium content. It’s also working on other ways to monetize its players, such as welcoming brands to advertise on the platform.

Roblox’s revenue has accelerated more than 20% in recent quarters, and management expects revenue to grow at least 20% annually through at least 2027. There is a growing selection of experiences available, including house building and other content that appeals to older players. , has helped Roblox continue to attract more users, which is why this stock is a long-term winner.

John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. John Ballard has no position in any stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, Roblox, and Walmart. The Motley Fool recommends the following options: His January 2026 $395 long call on Microsoft and his January 2026 $405 short call on Microsoft. The Motley Fool has a disclosure policy.

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