4 Monster Stocks to Buy Right Now and Hold for 20 Years
Amazon and Shopify are two different kinds of e-commerce businesses that both have incredible models and tons of opportunity.
MercadoLibre is a tech disruptor in Latin America, an underpenetrated region.
SoFi represents the future of banking in the U.S.
10 stocks we like better than Amazon ›
Market volatility over the past few months could lead investors to sell and take their winnings home before things get worse. But investing success means riding out the short-term waves and holding on to long-term winners. The S&P 500 (SNPINDEX: ^GSPC) has already made up whatever it lost in value earlier this year, and it would have been a shame to have sold at a low and missed out on the quick rebound.
If you can hold on for at least 20 years, you can choose excellent stocks and let them work their magic on your investments. Amazon (NASDAQ: AMZN), Shopify (NASDAQ: SHOP), MercadoLibre (NASDAQ: MELI), and SoFi Technologies (NASDAQ: SOFI) are four monster stocks that should reward you well over the next 20 years.
Amazon is the leader in e-commerce and cloud computing, two massive growth industries. It has about 40% of the U.S. market share in e-commerce and about 30% of the global market for cloud computing. Both of these industries are growing organically, and Amazon is benefiting from these organic tailwinds.
Shoppers know Amazon as the king of e-commerce, and the company is heavily investing in keeping its lead there. But management has identified generative artificial intelligence (AI), primarily through the Amazon Web Services (AWS) cloud-computing business, as its main growth driver over the next few years.
Amazon said it would invest upwards of $100 billion in 2025 alone to keep building out this business, and it offers a huge assortment of features and tools to every size and stripe of client. AWS itself generated a 17% year-over-year increase in sales in the first quarter and has a $117 billion annualized revenue run rate. Management expects that with generative AI, that rate will increase.
"We thought AWS had the chance to ultimately be a multihundred-billion-dollar revenue run rate business," CEO Andy Jassy recently said of the pre-generative AI opportunity. "We now think it could be even larger."
Advertising and streaming continue to grow and add value to the business, and Amazon is investing in new concepts like Zoox autonomous vehicles and Project Kuiper broadband. It has a huge growth runway, and its stock should keep rewarding investors over many years.
You won't see Shopify on any list of highest e-commerce sales because it doesn't sell products, it sells e-commerce services, like websites and payment processing. But its gross merchandise volume (GMV) is similar to Amazon's e-commerce sales, giving you a picture of Shopify's important and dominant position in the e-commerce space.
Shopify is also benefiting from the organic tailwinds of e-commerce growing as a percentage of retail sales. According to eMarketer, e-commerce accounted for 20.3% of retail sales in 2024, and that's expected to increase to 23% by 2027. Even that's still a small percentage, and with each percentage point translating into trillions of dollars, Shopify has a long growth runway.
It also continues to identify new ways to expand its market share and help its clients increase their sales. It has gone from a platform helping small businesses get online to targeting large businesses with individual e-commerce components. It offers a full-service omnichannel platform combining physical and digital retail, and it's making a bigger move into international, where there are several bigger players. International sales only accounted for 30% of the total in Q1, and that could be a huge growth driver in the coming years.
Patient investors should expect Shopify to be a top stock as it keeps growing and innovating for the foreseeable future.
MercadoLibre is similar to Amazon in that its core business is e-commerce, but it has dipped its toes into several other businesses that are driving fantastic growth. It operates in Latin America and offers a host of digital services in both e-commerce and financial technology. It consistently reports strong growth across metrics, such as a 40% increase in GMV year over year and a 72% increase in total payment volume in the 2025 first quarter.
The opportunity here is enormous because Latin America lags many other global regions in both e-commerce and digital penetration. In fact, 85% of sales are still offline, and some of its regions are underbanked, leading to a greater necessity for digital financial services.
Because its regions are still in their early innings in its industries, there are so many levers MercadoLibre can pull to move growth. It's doing so step by step, bringing in new, unique visitors to its ecosystem and generating higher purchase frequency. It's launching all sorts of innovative services, such as a new, free streaming initiative powered by its growing ad business.
MercadoLibre has a wide-open runway and tons of opportunities to grow its business and stock gains.
SoFi is a digital financial disruptor offering all banking services online. It targets the young professional who's just starting their financial journey and appreciates SoFi's tech focus and easy-to-use interface.
Although its core business is lending, it has successfully expanded into a large array of financial services like bank accounts and investing tools. These are fee-based products that have low costs and are becoming incredibly profitable.
Even the lending business is bouncing back as interest rates go lower, and lending revenue increased 25% year over year in Q1. Financial services, though, more than doubled, and contribution profit increased 299%.
It's adding members at a high rate and generating higher engagement through cross-selling and upselling, and SoFi has a massive growth opportunity over the next 20 years as it gets closer to its ambition of becoming a top-10 U.S. bank.
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!*
Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of May 19, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jennifer Saibil has positions in MercadoLibre and SoFi Technologies. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and Shopify. The Motley Fool has a disclosure policy.
4 Monster Stocks to Buy Right Now and Hold for 20 Years was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Journals
30 minutes ago
- Business Journals
The last-mile entrepreneur: How a Bay Area business owner turned Amazon deliveries into success
In August 2020, a customer came into Ronald Dubon's mechanic shop and asked him to repair an Amazon delivery truck. After completing the job, the customer mentioned that he had many more trucks needing service if Dubon could handle them. 'My eyes went big,' Dubon remembers. 'I thought I was coming up on an Amazon contract to fix vehicles.' But soon, Dubon discovered a different opportunity. The customer explained that Amazon doesn't operate the ubiquitous vans that take packages from its warehouses and deliver them to customers' homes. Instead, it contracts with more than 4,400 independent logistics companies to handle last-mile delivery. Dubon, who owned a delivery company of his own, was intrigued. He completed an online application for Amazon's Delivery Service Partner program the next day. He moved quickly through Amazon's interview process and, by October, was taking delivery of a fleet of 20 vehicles to launch his business. 'My life changed in that moment,' he said. expand Inside Amazon's DSP program Turning his Inner City Logistics business into an Amazon DSP was relatively simple, Dubon said. Amazon negotiates with vendors that supply most of the equipment DSPs need to purchase for their businesses, such as Amazon-branded vans, uniforms and handheld devices. The company also offers access to various optional business services, such as insurance, accounting and payroll software. Amazon's commitment to its DSPs is growing, too. In September 2024, the company announced it plans to incrementally invest more than $2.1 billion in the DSP program. It plans to spend the money on safety programs, rate cards, training, value-added services, incentives and other areas to support the businesses that handle its last-mile deliveries. 'I was awarded contracts with other logistics companies in the past, but it was like, 'Do you want a contract? Do you have a truck? OK, bring the truck and start running loads the next day,' Dubon said. 'The vetting process with Amazon is just a different world. When I started seeing all of these things and the level of the structure, I knew I was onto something that was going to be the future.' Today, Inner City Logistics ranks among Amazon's top-performing DSPs. Dubon's team of more than 100 employees operates 38 Amazon routes across San Francisco, Milpitas, San Jose and Fremont, scaling to as many as 100 routes during peak periods. Discovering the recipe for business success Amazon's training, structure and support to its DSPs has benefitted Dubon's other entrepreneurial efforts, including L'Roco Grill, a Salvadoran restaurant in San Jose. Dubon's wife, Lady Ruiz, runs the restaurant and handles backend responsibilities for Inner City Logistics. 'I used to operate businesses with a fear that came from not knowing if what we were doing was right or wrong because we didn't have that guidance,' he said. 'We learned a lot about how to run a good business. It's been a big change.' Amazon's training also underscored the importance of intentionally building your company culture to serve two types of customers: external customers who purchase goods and services and internal customers who work for your business, Dubon said. 'That concept alone makes a huge difference on how you walk into your building and how you treat people,' he said. 'Not only the people who come in to spend money at your business but also your employees because, ultimately, they are your clients. You need to make them both happy.' Elevating entrepreneurship Dubon's passion for entrepreneurship and professional development extends beyond his businesses. He's helped one employee go on to open his own DSP business, and two more are on their way to doing the same. Dubon has become a champion for Road to Ownership, an accelerated training program Amazon offers to help high-performing DSP employees become DSP owners. The 16-week program includes classroom-style training and mentorship by a successful DSP owner. People who graduate from Road to Ownership receive a $30,000 grant to help them launch their businesses. 'I pride myself on developing the best people and taking them up to the next level,' Dubon said. 'We've done that in the restaurant business, too, my wife and I. This is what I love doing.' The first person Dubon mentored through the Road to Ownership program was Jose Mejia, who started working for Inner City Logistics as a helper supporting the company's drivers. He moved up through the company quickly, serving as a driver, then a trainer, dispatcher and operations manager. 'This is probably the guy with the best work ethic that I've ever met,' Dubon said. 'He is an extremely amazing guy, and I thought he deserved an opportunity for something even better.' Mejia has continued his professional growth. He received a Rising Star award from Amazon for having the best DSP launch in 2023. Today, he has close to 100 employees in the Sacramento region. It is a success story Dubon said he hopes to help repeat by supporting more entrepreneurs. 'I have a motto in my company,' Dubon said. 'I want you to come to my company as a driver, but if you leave, I want you to leave as a business owner.'
41 minutes ago
Asian shares slide as Russia-Ukraine conflict, OPEC+ output plan push oil prices higher
HONG KONG -- Asian shares sank on Monday and oil prices jumped as trade tensions and the Russian-Ukraine conflict ratcheted up geopolitical uncertainty. Hong Kong's Hang Seng plunged more than 2% as Beijing and Washington traded harsh words over trade. U.S. President Donald Trump's announcement that he will double tariffs on steel and aluminum to 50% layered on still more worries for investors. A report over the weekend that China's factory activity contracted in May, although the decline slowed from April as the country reached a deal with the U.S. to slash President Donald Trump's sky-high tariffs, further undermined market sentiment. Markets in mainland China were closed for a holiday. Oil prices rallied after OPEC+ decided on a modest increase in output beginning in July. It was the third monthly increase in a row. U.S. benchmark crude oil gained $1.60 to $62.39 per barrel, while Brent crude, the international standard, was up $1.41 at $64.19 per barrel. Moscow pounded Ukraine with missiles and drones just hours before a new round of direct peace talks in Istanbul and a Ukrainian drone attack destroyed more than 40 Russian planes deep in Russia's territory, Ukraine's Security Service said on Sunday. Hong Kong's Hang Seng dropped 2.2% to 22,778.45 as China and the U.S. accused each other of breaching their tariff agreement reached in Geneva last month. Tokyo's Nikkei 225 lost 1.6% to 37,356.97, while the Kospi in Seoul fell 0.4% to 2,686.17. Australia's S&P/ASX 200 retreated 0.2% to 8,416.00. On Friday, Wall Street closed its best month since 2023. The S&P 500 retreated less than 0.1% to end at 5,911.69 and the Dow industrials Jones Industrial Average edged 0.1% higher to 42,270.07. The Nasdaq composite fell 0.3% to 19,113.77. Gap weighed on the market even though the retailer reported stronger profit and revenue for the latest quarter than analysts expected. The company behind Banana Republic and Old Navy fell 20.2% after saying tariffs on imports from China and other countries could add up to $300 million to its costs this fiscal year. It has strategies set to mitigate up to half of that before it hits its profits. Hopes had largely been rising that the worst of such worries had passed, which in turn sent stocks rallying, after Trump paused his tariffs on both China and the European Union. A U.S. court then on Wednesday blocked many of Trump's sweeping tariffs. That all sent the S&P 500 in May to its first winning month in four and its best since November. But the tariffs remain in place while the White House appeals the ruling by the U.S. Court of International Trade, and the ultimate outcome is still uncertain. Friday's most influential losses came from several Big Tech stocks. Nvidia fell 2.9% to give back some of its gain from earlier in the week after it topped analysts' expectations for profit in the latest quarter. It was the single heaviest weight by far on the S&P 500. On the winning side of Wall Street was Ulta Beauty, which rose 11.8% after the retailer reported stronger sales and profit than analysts forecast. It also raised the top end of its forecasted range for revenue this fiscal year even though CEO Kecia Steelman called the operating environment 'fluid.' Costco climbed 3.1% after the retailer's results and revenue for the latest quarter edged past analysts' expectations. In the bond market, Treasury yields eased after a report showed that the measure of inflation that the Federal Reserve likes to use was slightly lower in April than economists expected. A separate report from the University of Michigan said that sentiment among U.S. consumers was better in May than economists expected. Sentiment improved in the back half of the month after Trump paused many of his tariffs on China. In currency trading early Monday, the U.S. dollar fell to 143.55 Japanese yen from 143.87 yen. The euro inched up to $1.1364 from $1.1351.
CNBC
an hour ago
- CNBC
CNBC Daily Open: It's a dicey matter to play 'chicken' in markets
When threatened, birds puff up their feathers to appear larger than they actually are, and squawk to signal aggression. On Friday, U.S. President Donald Trump suggested he would no longer be "Mr. NICE GUY" to China after the country "totally violated" its trade agreement with America. The same day, Trump said he would raise tariffs on steel imports to 50% from 25%. The escalations follow a détente in May, during which Trump reached a trade deal with the U.K., agreed with Beijing to sharply reduce reciprocal import duties and delayed for more than a month a tariff of 50% on the European Union — two days after announcing it. Those glad tidings lifted stocks. For May, the S&P 500 rose 6.2% and the Nasdaq Composite jumped 9.6%, with both indexes enjoying their best month since November 2023. The Dow Jones Industrial Average gained 3.9% for the month. But the mood among investors might change quickly, depending on communication coming from the White House. The word "chicken" is used as a metaphor for cowardice. In reality, they can be dangerous — there have been reports of humans being killed by Colonel Sanders' favorite bird. Asia markets start June in the redU.S. markets traded mixed Friday. The S&P 500 was flat, the Dow Jones Industrial Average rose 0.13% and the Nasdaq Composite fell 0.32%. Futures tied to the three indexes ticked down Sunday evening stateside. Asia-Pacific stocks fell Monday. Hong Kong's Hang Seng index dropped 1.9% and Japan's Nikkei 225 lost 1.32% at 1:30 p.m. Singapore time. Expected Trump-Xi talkTrade tensions between China and the U.S. are escalating. On Monday, Beijing claimed that the White House's "export control measures" breach the two countries' agreement reached in Geneva, Switzerland, refuting Trump's claim on Friday that China has "TOTALLY VIOLATED" it. That said, reconciliation could happen as Trump and Chinese President Xi Jinping are expected to discuss trade negotiations "this week," U.S. National Economic Council director Kevin Hassett said on Sunday. Trump says he'll double steel tariffsTrump on Friday told steelworkers at U.S. Steel that he will raise import duties on steel to 50% from 25%. The new import duties will start June 4, the president posted on Truth Social. On Saturday, the European Union said it is "prepared to impose countermeasures, including in response to the latest U.S. tariff increase." Even so, "tariffs are not going away," U.S. Commerce Secretary Howard Lutnick said on "Fox News Sunday." Musk cuts himself from DOGEElon Musk bid farewell to his role at the U.S. Department of Government Efficiency Friday. Musk said on Sunday that he doesn't want to "take responsibility for everything the administration's doing," expressing disappointment at the White House's "massive spending bill." Tesla shares lost 14% this year amid Musk's involvement in politics, but gained 22% in May following Musk's April statement he would spend less time at DOGE. Australia's Soul Patts and Brickworks to mergeShares of Australian investment firm Washington H. Soul Pattinson, also known as Soul Patts, spiked more than 15%, and its affiliate Brickworks rocketed over 25% after both companies announced a merger of 14 billion Australian dollars ($9 billion). As part of the deal, a new company listed in Sydney will acquire all outstanding shares of Soul Patts and Brickworks. The merged entity will have holdings across real estate, private equity and credit totaling A$13.1 billion. [PRO] May jobs report in focusThe U.S. nonfarm payrolls report for May, out Friday, will provide more information on how the economy is holding up amid Trump's multiple tariffs —and play a big role in determining whether the May rally in stocks still has legs. Economists expect the number of jobs added in May to dip from April. It misses the forecast, markets could take a downturn as the White House appears to ratchet up its tariff rhetoric. Investors are piling into big, short Treasury bets alongside Warren Buffett Investors always pay close attention to bonds, and what the latest movement in prices and yields is saying about the economy. Right now, the action is telling investors to stick to the shorter-end of the fixed-income market with their maturities. Long-term treasuries and long-term corporate bonds have posted negative performance since September, which is very rare, said Todd Sohn, senior ETF and technical strategist at Strategas Securities, on "ETF Edge." The only other time that's happened in modern times was during the Financial Crisis," he added. "It is hard to argue against short-term duration bonds right now." It would seem that Warren Buffett agrees, with Berkshire Hathaway doubling its ownership of T-bills and now owning 5% of all short-term Treasuries, according to a recent JPMorgan report.
