In the world of modern investing, stock market volatility requires investors to maintain a sharp eye for opportunities. While some companies may experience short-term fluctuations, their long-term growth potential is undeniable. Today, we'll discuss two stocks that could yield substantial returns over the next 20 years: Roblox and Shopify.
Roblox has undoubtedly been one of the hottest stocks of 2025. As of now, Roblox’s stock price has surged by 85%, significantly outperforming the S&P 500's 6% return. Roblox’s success can be attributed to its massive appeal to the younger generation. As a virtual platform, Roblox not only offers a wide range of games but also provides users with a space to socialize, create content, and even run businesses. The platform boasts over 97 million daily active users, and this number continues to rise.
The company’s revenue model is coming together nicely. Users purchase the platform's virtual currency—Robux—to buy virtual items such as clothes and accessories to enhance their avatars. Over the past year, Roblox generated $876 million in free cash flow on $3.8 billion in revenue. At the same time, Roblox is exploring additional revenue streams. For instance, major brands like Nike have already established virtual worlds on Roblox, opening the door to advertising revenue. A study released by Roblox found that 78% of users have a positive reception to brands advertising on the platform. Although this sector is still in its early stages, the success of digital ads on other platforms like Netflix suggests Roblox could tap into a massive advertising revenue opportunity in the future.
However, despite Roblox’s impressive stock performance, investors should remain cautious before making a purchase. The stock’s volatility may increase in the short term, particularly as the company prepares to release its earnings report. Nevertheless, from a long-term perspective, Roblox, with its strong user base and potential in both virtual entertainment and advertising, remains a promising investment.
On the other hand, Shopify is a company that provides an e-commerce platform for millions of businesses around the world. Over the past decade, Shopify’s stock price has skyrocketed by 3,700%, yet it still only holds a small slice of the global e-commerce market. The global e-commerce market is valued at over $6 trillion and continues to grow rapidly. According to eMarketer, in the U.S., only about 16% of retail sales are conducted online, meaning Shopify still has plenty of room for growth.
Shopify’s business model is driven by recurring subscription revenue from businesses that use its platform to run online stores. In addition, Shopify offers a range of other services, including payment processing, shipping tools, and financing. Over the past year, Shopify generated $1.7 billion in free cash flow on $9.4 billion in revenue. This steady income stream makes Shopify an attractive investment opportunity.
The future of e-commerce also offers Shopify a significant growth runway. As social media platforms like Instagram become new shopping channels, Shopify merchants can reach a broader customer base. The social commerce market is projected to reach $1.6 trillion by 2025 and grow at a 30% annual rate through 2030, according to Mordor Intelligence. Shopify is already adapting to this shift, providing solutions for merchants to engage in social commerce, further solidifying its position in the market.
That said, like any high-growth company, Shopify faces risks, particularly from increasing competition in the e-commerce space. But, in the long term, as the global e-commerce market expands, Shopify is well-positioned to benefit, making it a stock worth holding for the future.
Both Roblox and Shopify have strong growth potential. Looking ahead, both stocks are poised to deliver substantial returns over the next 20 years. Roblox, with its focus on attracting younger users and expanding into advertising, may see continued success in virtual entertainment and digital ads. Meanwhile, Shopify’s leadership in the e-commerce sector will allow it to continue benefiting from the ongoing growth of the global e-commerce market.
However, every investment comes with risk. Before making any investment, it's important to carefully assess a company’s long-term growth potential and market conditions. Whether investing in Roblox or Shopify, the key is maintaining a sharp understanding of market trends and sticking to a long-term investment strategy. This approach will likely help you achieve steady returns in the evolving financial landscape.