Amazon's stock may not replicate its past gains, but the company remains strong. Walmart is expected to show good progress due to its retail market dominance. Netflix, while facing competitive limitations, could see changes ahead.
Finding a stock with long-term growth potential to pass down through generations is challenging. It requires near-certain, indefinite longevity. Not every company is built to last and thrive for decades.
A few companies, however, are positioned to create lasting generational wealth as established leaders in industries the world should always support.
Amazon is a frequently suggested stock pick. The e-commerce giant holds a market-leading 40% share of the U.S. e-commerce market, according to Digital Commerce 360. Walmart is a distant second with under 11%.
Internationally, Amazon faces competitors like Alibaba and MercadoLibre. Its international retail sales grew almost 12% through the first three quarters of last year, boosting operating income by 50%. The company's overseas operations appear to have turned a profit corner.
Beyond e-commerce, Amazon Web Services, launched in 2006, now accounts for 29% of global cloud industry sales, as reported by Synergy Research Group. AWS generates about 60% of Amazon's operating income.
Other successful initiatives include Amazon Prime, advertising at Amazon.com, and Alexa and Echo devices. Amazon.com advertising produced nearly $65 billion in high-margin revenue over the past four reported quarters.
Walmart dominates brick-and-mortar retailing. Capital One data suggests Walmart accounts for 6.3% of total U.S. retail spending. Costco does about one-third of Walmart's domestic business.
Walmart remains the U.S.'s single biggest retailer based on consumer retail sales alone. The company reports 90% of the U.S. population lives within 10 miles of one of its 4,606 U.S. stores.
Nearly 70% of Walmart's business is done in these stores, where about 84% of retail spending still occurs in-store rather than online. The company is evolving its offerings, including a subscription-based delivery service akin to Amazon Prime.
In 2024, Walmart acquired smart-television brand Vizio to bolster its advertising business and access Vizio's 19 million active smart TV users. Steady, reliable growth is expected from Walmart, with no brick-and-mortar rival positioned to challenge its dominance.
Netflix is preparing to spend roughly $80 billion to acquire Warner Bros. Discovery's streaming assets, film and TV studio, and intellectual property like DC's superheroes. This price is steep relative to current revenue and profits.
The acquisition could cement Netflix's leadership in the U.S. streaming space and make a big dent in the fragmented international market. Warner Bros. studios provide another option for self-produced content.
Warner Bros.' distribution arm could distribute Netflix-made programming outside Netflix's own delivery ecosystem. The combined companies would co-control two interlinked aspects of the entertainment industry.
No single name in the streaming business has pulled away with a decisive lead, keeping profits in check. Eventually, the streaming business may become a two-horse race with one clear leader, likely Netflix.
The other key competitor may be a combination of several streaming service providers joining forces to keep up. The industry leader's stock tends to deliver the best prolonged performance, as seen with Walmart and Amazon.
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