Please ensure Javascript is enabled for purposes of website accessibility

Investing in These Stocks Now Could Make You a Millionaire Retiree

By Adria Cimino – Updated May 12, 2020 at 8:46AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

These companies have a history of revenue growth -- and a lot more may be on the horizon.

Can these two stocks make you a millionaire? If you hold on to them long enough, it's possible. Sure, they aren't cheap, but these companies have steadily increased revenue and offer the promise of more in the coming years.

If retirement is years down the road for you, you will have plenty of time to watch sales -- and share prices -- multiply.

A man holds a laptop in front of a wall of computerized data.

Image source: Getty Images. (AMZN -1.57%) is trading at a record high, but the shares have further to go well into the future. Even as the coronavirus pandemic has hurt revenue at most companies, the online retail giant said first-quarter net sales increased 26% to $75.5 billion. The company has hired more than 175,000 workers over the past few weeks to handle the increase in demand.

Though the outbreak will be temporary, Amazon's sales growth won't stop when customers stop stockpiling essential goods. The retailer has a history of strong sales growth, with more than a decade of steady gains. Amazon predicts net sales will climb between 18% and 28% in the second quarter.

The diversity of Amazon's businesses also makes me confident about its future, from cloud computing to grocery. Amazon Web Services (AWS) is a significant part of the picture. The cloud computing business is a strong profit driver for Amazon, with AWS' first-quarter operating income making up 76% of the company's $4 billion in total operating income. And AWS posted a 33% increase in quarterly sales.

Amazon's leadership in grocery is a plus as more and more consumers turn to online shopping. Online grocery sales grew 15% last year, according to a Brick Meets Click analysis. Last year, Amazon began offering free two-hour grocery delivery to Prime members in certain regions. In other areas, same-day or one-day delivery is available. In the recent earnings call, Amazon said online grocery is growing, and the company increased delivery order capacity by more than 60% to handle demand due to the COVID-19 outbreak.

Amazon shares aren't cheap. They are trading at 113 times trailing-12-month earnings, close to their highest ever by that measure. But that doesn't mean gains are over, especially if you have the ability to sit back and wait a few years.


As we might have expected, Netflix (NFLX -1.78%) saw a huge boost in subscribers as people around the world stayed home these past several weeks. The company reported a gain of nearly 23% to 15.77 million net additions in the first quarter as more and more viewers had more time for entertainment.

It's possible that some of those newer members will end their subscriptions after returning to their normal routines, and it's unlikely that Netflix will see gains of the same extent on a regular basis. That said, if history is any guide, we still can be optimistic about Netflix attracting more and more subscribers into the future. Netflix has steadily increased subscriber numbers since 2015. Now, the company predicts an increase of more than 25% in the second quarter, with the addition of 7.5 million new subscribers.

With competition such as Apple TV or Disney+, how can Netflix keep up this kind of pace? Through its original content. The company said in December that its original content was the most popular of all new releases offered through the service last year.

Netflix said it intends to release shows and films as planned in the second quarter. The coronavirus outbreak led to a production halt, but Netflix is compensating through the acquisition of titles to assure the continuity of fresh content.

Some say Netflix shares have gotten too expensive; they are trading close to an all-time high. And Wall Street only expects 3.6% upside from here this year. But for an investor looking for growth over a period of years, the Netflix story is far from over.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Apple, Netflix, and Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and short July 2020 $115 calls on Walt Disney. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Netflix, Inc. Stock Quote
Netflix, Inc.
$235.44 (-1.78%) $-4.27, Inc. Stock Quote, Inc.
$113.00 (-1.57%) $-1.80
Apple Inc. Stock Quote
Apple Inc.
$138.20 (-3.00%) $-4.28
The Walt Disney Company Stock Quote
The Walt Disney Company
$94.33 (-3.20%) $-3.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.