Top 2 Growth Stocks Outperforming the Market in Past 2 Years
Investors in Netflix and Amazon have seen some ups and downs over the past five years. These two streaming giants have outperformed the market in 2023 and 2024, but have fallen short in the other years. Despite this, they are still considered attractive growth stocks due to their recent business performance and future opportunities. Analysts on Wall Street are projecting solid earnings growth between 18% to 24% for both companies in the coming years.
Netflix, for example, has had a rocky road in recent years. The stock only slightly outpaced the S&P 500 in terms of growth since 2020, but has seen a significant increase of 24,000% since 2005. Despite underperforming the market in certain years, Netflix boasts over 300 million paying households worldwide, making it a dominant force in the streaming industry. Analysts expect its revenue to grow by 15% in 2025, which is seriously impressive.
On the other hand, Amazon is known for its e-commerce dominance but has been expanding into other profitable areas like cloud computing, advertising, entertainment services, and consumer devices. These ventures have been paying off, with Amazon’s net sales growing consistently over the past few years. The company’s cloud computing business has been a particularly strong performer and has bolstered Amazon’s profitability. Despite underperforming the market in recent years, Amazon’s improving profitability and growth prospects make it a solid long-term investment.
Both of these companies have had their fair share of challenges, but their fundamentals and future prospects look strong. With their track record of innovation and solid growth potential, Netflix and Amazon seem poised to continue delivering market-beating returns for investors in the years to come.
