The Motley Fool·2025-12-03 15:39Core Insights - The article highlights two growth stocks, Netflix and Shopify, that are expected to deliver significant returns by 2030, emphasizing their strong market positions and growth potential. Netflix - Netflix has shown exceptional investment returns, with a $1,000 investment 10 years ago now worth $8,600, showcasing its compounding growth [2] - The company has over 300 million members but captures only about 7% of global entertainment spending and 10% of TV viewing time, indicating room for growth [3] - Netflix spent $17 billion on content production last year, funded by operating cash flow, providing a competitive edge over less profitable companies [3] - The company is focusing on maximizing long-term revenue rather than just member growth, with consistent double-digit revenue growth [5] - Netflix's advertising strategy is expected to double ad revenue by fiscal year 2025, contributing to profit growth [5] - Analysts project free cash flow to increase from $9 billion in 2025 to over $20 billion by 2029, representing a 22% annualized growth rate [6] Shopify - Shopify transformed a $1,000 investment into $59,000 over the past decade, establishing itself as the go-to platform for online merchants [7] - The company is integrating AI tools to enhance online business operations, positioning itself to capitalize on a $6 trillion global e-commerce market [7] - Shopify is experiencing strong growth with a 32% year-over-year revenue increase in the last quarter, indicating significant future opportunities [9] - Free cash flow surged 20% year-over-year, reaching $1.9 billion on a trailing 12-month basis, allowing for further investment in AI technologies [10] - Analysts expect Shopify's free cash flow to grow at a 28% annualized rate through 2029, potentially reaching $5.5 billion in four years [11]