The S&P 500 has increased by more than 3,500% in the past 50 years. Investors who bought and owned stocks over the past five decades – who have seen six recessions and several market crashes – have been well rewarded for their patience.
Past growth never guarantees future gains, but we have to assume that the market will overcome its short-term challenges and increase further over the next 50 years. Here are three high-growth stocks that are part of your long-term portfolios: Amazon (NASDAQ: AMZN), Veeva systems (NYSE: VEEV), and Tencent (OTC: TCEHY).
Amazon has one of the largest e-commerce markets in the world and Amazon Web Services (AWS) is the largest cloud infrastructure platform in the world. Amazon subsidizes the growth of its low-margin markets through its higher-margin cloud revenue, which makes it easy to crush small retailers with loss strategies.
Amazon also has the third largest online advertising platform in the United States, and its Prime Video and Amazon Music services are gradually gaining ground compared to Netflix and Spotify, respectively. In addition, it is the largest manufacturer of smart speakers in the world, and it is expanding its physical presence with Whole Foods stores and Amazon Go stores without a cashier.
Amazon connects all of these points to its Prime ecosystem, which exceeded 150 million global subscribers at the end of 2019. These subscriptions – which give members exclusive discounts, free delivery options, access to its services streaming and other digital benefits – widen its gap against retailers and rivals in the tech ecosystem.
In other words, Amazon stocks still have a lot of room for maneuver despite an increase of almost 1,800% over the past 10 years. Amazon’s business will grow and evolve over the next few decades, but its grip on the retail and cloud markets is expected to remain strong as it expands its advertising and media ecosystems.
2. Veeva systems
Veeva is not a household name like Amazon, but it is probably just as resilient. Cloud services company tools help healthcare giants like GSK, AstraZeneca, and Novartis maintain customer relationships and follow industry regulations, clinical trials, prescription patterns and other data in real time.
These services keep clients on the same wavelength and prevent them from wasting time on redundant or failed treatments. The main platform of Veeva is a customer relationship management (CRM) service that operates on SalesforceMicrosoft’s application development platform, and it locks customers in with additional services, including a data warehouse, employee training tools, and an artificial intelligence (AI) assistant.
Veeva has an advantage as the first driver in this niche market, and it is not yet facing significant competitors. The global CRM market for healthcare could grow from $ 7.3 billion to $ 28.9 billion between 2017 and 2026, according to Research and Markets, and that growth could continue for decades as competition is intensifying between the major pharmaceutical and biotechnology companies.
Veeva went public at $ 20 per share in late 2013, and its shares are currently trading just below $ 200. This almost tenfold gain is impressive, but the title could still accumulate larger gains in the long term.
Tencent owns WeChat, the most popular messaging app in China with more than 1.16 billion monthly active users. In the past three years, Tencent has expanded WeChat into an ecosystem with over 300 million mini programs to access e-commerce markets, carpools, payments and other services without ever leaving the app . It also has a virtual duopoly on the Chinese digital payments market with AliPay, supported by Alibaba.
Tencent is also the world’s largest video game publisher, the second-largest cloud platform provider in China after Ali Baba (NYSE: BABA)and the country’s fourth digital advertising platform. He also owns Tencent Video, a growing list of other mobile apps and investments, and a controlling stake in the streaming giant Tencent Music.
This sprawling ecosystem – which is linked by WeChat, its old QQ messaging network and payment service WeChat Pay – strengthens Tencent’s defenses against potential rivals like Alibaba and Baidu. Its diversification also guarantees that it will be the spearhead of the growing Chinese technology sector over the next 50 years.
Tencent’s shares have risen almost 1,300% over the past decade, but its three main growth engines – games, advertising, fintech and business services – are expected to continue to grow and generate fresh money so that l company can develop in new markets. This ongoing expansion could further increase the stock in the long term.