Two Monster Stocks That Will Hold Up for the Next 20 Years, Including Microsoft Stock (MSFT)

Two Monster Stocks That Will Hold Up for the Next 20 Years, Including Microsoft Stock (MSFT)
Two Monster Stocks That Will Hold Up for the Next 20 Years, Including Microsoft Stock (MSFT)

We all want our stock portfolios to be full of monster stocks, but that’s not an easy goal to achieve. If we’re lucky, we’ll own some and their huge gains will help offset some inevitable losses.

Here are some stocks that have been monster stocks and are likely to continue to be monster stocks for the foreseeable future.

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microsoft (NASDAQ:MSFT) It’s huge, encompassing the dominant Office 365 suite, the Azure cloud computing platform, the Xbox gaming platform, the Windows operating system, and even LinkedIn, among many other things. It’s also been a monster stock, with average annual returns of 25% over the last decade, and still growing. In its first quarter of fiscal 2026, revenue increased 18% year over year, while net income increased 12%.

The company has been investing heavily in artificial intelligence (AI), with CEO Satya Nadella saying: “Our planetary-scale cloud and AI factory, along with co-pilots in high-value domains, are driving broad diffusion and real-world impact… That’s why we continue to increase our AI investments in both capital and talent to address the enormous opportunity ahead.”

Microsoft is generating more cash than it needs to spend on growth, so it’s paying shareholders a dividend, which recently yielded 0.77%. (It may not seem like much, but it’s also growing quickly: from $2.09 per share in 2020 to $3.40 per share recently.)

Its stock is also reasonably priced, with a recent price-to-earnings (P/E) ratio of 29, which is a bit below its five-year average of 30. It is highly rated by many Wall Street analysts and is likely to continue growing, in part because much of its business is conducted with other companies, which use its services to stay productive and safe. (Its Azure cloud platform, for example, saw a 40% year-over-year revenue increase in the first quarter.)

netflix (NASDAQ: NFLX) It is another monster stock and has more growth potential. Over the past decade, it has averaged annual gains of 24% and continues to grow as well. Its fourth quarter of 2025 reported revenue of $12 billion, up nearly 18% year-over-year, with net income up 29% and projected to rise around 35% for the next quarter. Its advertising revenue is the key to its recent success. As the company noted, “In 2025, which was just our third year selling advertising, advertising revenue grew more than 2.5 times compared to 2024, to more than $1.5 billion.”

The stock is actually down about 12% over the past year (as of January 26), partly due to uncertainty over its takeover bid. Warner Bros. Discoveryhome of HBO and more. That offer was recently more than $70 billion, but others are also vying to make the acquisition. And some worry that Netflix will end up paying too much.

Netflix stock also appears to be attractively valued, which is not usually the case. Its recent Forward P/E of 27 is well below its five-year average of 33.

Take a closer look at one or both companies, if they interest you. And if not, know that there are plenty of other compelling growth stocks out there.

Before you buy Microsoft stock, consider this:

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Consider when netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you would have $450,256!* Or when NVIDIA made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you would have $1,171,666!*

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*Stock Advisor returns from February 1, 2026.

Selena Maranjian has positions at Microsoft, Netflix and Warner Bros. Discovery. The Motley Fool ranks and recommends Microsoft, Netflix, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.

Two Monster Stocks That Will Hold Up Over the Next 20 Years, Including Microsoft Stock (MSFT) Originally Posted by The Motley Fool

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