Title: Two Stocks with Potential to Fuel Generational Wealth
Investing in the stock market opens up a world of possibilities for growing your savings with some of the best businesses out there. If you're already a fan of shopping online, you might want to consider investing in Amazon (AMZN 0.01%) or Roku (ROKU 6.42%).
1. Amazon
Smart money often lies in familiar brands, and Amazon fits the bill perfectly. Millions of shoppers worldwide, including Prime members, know all too well why it's such a fantastic business. Its extensive selection, competitive prices, and lightning-fast shipping have helped it secure a sizeable stake in the $6 trillion global e-commerce market. As the market continues to expand, Amazon has the potential to grow for several more years.
Amazon's shares have more than doubled over the last five years, despite already hitting new highs. The key driver of this growth is its cloud-services business, Amazon Web Services (AWS). AWS continues to attract organizations looking to leverage artificial intelligence (AI) and optimize their processes. This shift to cloud services is fueling the company's profits, as AWS accounts for most of Amazon's operating income.
Analysts project the public cloud market to reach a staggering $1.8 trillion by 2029, suggesting that Amazon's growth is far from over. If you believe in Amazon's long-term potential, investing now could reward you with double-digit annualized returns.
2. Roku
Roku is another brand with a dedicated following, with over 85 million households using its streaming platform. Its stock might have struggled in 2022 due to the ad market's challenges, but it presents a compelling opportunity for investors now. With the stock's price to sales ratio of 2.8, you could be buying shares for a solid discount.
Amazingly, the total advertising market is forecasted to grow by 8% this year, with a significant portion shifting to digital media platforms. Roku is poised to benefit from this trend, as the connected TV advertising market is projected to reach $38 billion in 2024 – a market Roku is growing in line with.
Despite the ad market's recovery, Roku's stock remains down 64% over the last three years. However, its strong Q3 performance, with EBITDA over 9%, indicates that the company is slowly but surely optimizing its operations for better profitability.
With more households migrating to streaming platforms like Roku, the stock could deliver exceptional returns over the next decade and beyond. Investors should closely monitor the rapid growth in the connected TV sector and consider Roku as a valuable addition to their portfolios.
Enrichment Data Insights
Amazon's dominance in the e-commerce market is evident with a share of 37.8% of the US market and $554.02 billion in net revenue in 2023. The company's strong growth prospects in the e-commerce sector and AWS contribute to its compelling investment case.
Roku, meanwhile, boasts a 37% market share in the connected-TV market in North America and continues to add users as traditional TV declines. Its open platform also allows access to numerous streaming services, making it an attractive alternative for consumers.
Both Amazon and Roku offer unique investment opportunities. Wise investors can leverage these growth potentials to construct a well-diversified, long-term investment strategy.
- If you're interested in finance and looking for promising investments, Amazon's stock (AMZN 0.01%) could be an excellent choice due to its dominance in the e-commerce market and the potential growth of its cloud services business, Amazon Web Services (AWS).
- Roku, another brand with a strong following, presents an attractive investment opportunity in the finance sector, especially considering its significant market share in the connected TV market and the projected growth of the digital ad market.
