Can these two shares make you a millionaire? If you keep them long enough, it is possible. Sure, they are not cheap, but these companies have steadily increased revenue and promise more over the coming years.
If retirement is many years for you, you will have plenty of time to look at sales – and stock prices – multiply.
Amazon.com (NASDAQ: AMZN) traded high, but the shares must continue to go far into the future. Even when the coronavirus pandemic has hurt the revenues of most companies, the online commerce giant said net sales for the first quarter increased by 26% to $ 75.5 billion. The company has hired more than 175,000 workers in recent weeks to cope with the increase in demand.
Although the outbreak will be temporary, Amazon’s sales growth will not stop when customers stop storing important goods. The dealer has a history of strong sales growth with more than a decade of steady profits. Amazon predicts net sales to rise between 18% and 28% in the second quarter.
The diversity of Amazon’s businesses also makes me confident about its future, from cloud services to grocery stores. Amazon Web Services (AWS) is an important part of the picture. The cloud computing business is a strong profit driver for Amazon, with AWS operating profit for the first quarter accounting for 76% of the company’s total operating revenue. And AWS booked an increase of 33% of quarterly sales.
Amazon’s leadership in grocery shopping is a plus as more and more consumers are turning to online shopping. Online grocery sales increased 15% last year, according to an analysis by Brick Meets Click. Last year, Amazon began offering free two-hour food delivery to Prime members in some regions. In other areas, delivery is the same day or one day. In the latest revenue call, Amazon said online commerce is growing and the company increased delivery orders by more than 60% to handle demand due to the COVID-19 outbreak.
Amazon shares are not cheap. They trade 113 times after 12-month earnings, near the highest ever with that measure. But that doesn’t mean the winnings are over, especially if you have the ability to sit back and wait a few years.
As we might have expected Netflix (NASDAQ: NFLX) saw a huge upsurge in subscribers as people around the world stayed home for the past few weeks. The company reported a gain of almost 23% to 15.77 million net additions in the first quarter as more and more viewers had more time for entertainment.
It is possible that some of these newer members will unsubscribe after returning to their normal routines, and it is unlikely that Netflix will see profits to the same extent on a regular basis. That said, if history is any guide, we can still be optimistic about Netflix attracting more and more subscribers to the future. Netflix has steadily increased the number of subscribers since 2015. The company now forecasts an increase of more than 25% in the second quarter, with the addition of 7.5 million new subscribers.
How can Netflix keep this kind of pace with competition like Apple TV or Disney +? 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 programs and films as planned during the second quarter. The coronavirus outbreak led to a production halt, but Netflix compensates by acquiring titles to ensure continuity of fresh content.
Some say Netflix shares have become too expensive. they trade near a maximum time. And Wall Street expects only 3.6% upward this year. But for an investor looking for growth over a period of years, the Netflix story is far from over.