If you're looking for monster stocks to own for the next five years, you don't have to scour far and wide to find great investments. In fact, some of the best may be right under your nose. These include the stocks of companies whose products or services you use all the time.
Let's look at two growth stocks you can buy today and hold at least for the next five years.
Amazon: An e-commerce and cloud leader
If your household is anything like mine, you probably have packages arriving from Amazon (AMZN +3.23%) on a pretty consistent basis. The ease of the company's website and fast delivery make it an e-commerce juggernaut. However, it is what the company has been doing behind the scenes with its e-commerce business that is exciting.
What many people may not realize is that Amazon is the largest developer, manufacturer, and operator of robots in the world. Because the company uses the robots it makes for internal applications, it doesn't get the same fanfare as Tesla when it talks about its big robot opportunity. However, the e-commerce company has more than 1 million robots in its fulfillment centers, which are all coordinated by its DeepFleet AI model.
NASDAQ: AMZN
Key Data Points
Meanwhile, management has made two robotic acquisitions this year. Rivr makes wheeled robots that will be able to help with last-mile delivery, while Fauna Robotics gets it into the field of humanoid robots.
The company is also set to significantly increase its use of drones this year to help speed up delivery. And it's using AI to help determine which fulfillment centers to use to store items, optimize delivery routes, and help drivers find hard-to-find drop-off locations in places like large apartment complexes.
It remains at the forefront of technology to help speed up delivery. This not only drives sales, but it also makes the company's e-commerce operations more efficient, which is driving strong operating leverage. Last quarter, the company North American segment saw its operating income surge 43% on a 12% increase in sales.
Amazon is also the world's largest cloud computing company. In fact, Amazon Web Services (AWS) is its largest segment in terms of profitability. AWS has been seeing accelerating revenue increases, up 28% in the first quarter, with demand for computing power and AI services driving strong growth.
With demand exceeding capacity, Amazon is spending $200 billion this year to capture this opportunity and has large commitments from anchor customers Anthropic and OpenAI. Amazon also has a large custom chip business, which helps give it a cost advantage.
Between its e-commerce and cloud computing opportunities, Amazon is a stock to own for at least the next five years.
Image source: The Motley Fool
Apple: The great compounder
Another product many people use every day is the iPhone, with Apple (AAPL 0.76%) having around a 60% market share in the U.S. If you're an iPhone user, you probably like the smartphone for its sleek design and that it tends to work pretty seamlessly with other Apple devices.
You may also realize that once you've owned an iPhone for awhile, it's hard to switch to an Android phone without a lot of hassle and the potential loss of a lot of important photos and apps.
NASDAQ: AAPL
Key Data Points
And that is actually the beauty of Apple's business model. Once locked into its ecosystem, most people stay. They also tend to buy more of its high-margin subscriptions and services, such as cloud storage or apps.
Apple also gets a small cut anytime someone uses Apple Pay to make a purchase, and it has a revenue-sharing deal with Alphabet for search. These are huge under-the-radar profit drivers for the company.
Apple also tends to have a fairly predictable replacement cycle for its devices. Combined with the strong growth of its service segment, this makes the company an extraordinary business that just compounds over time. That's why it's a stock you want to own for the next five years or longer.
