Ten years is a long time in any terms, but when a company has done as well over that time as the companies outlined below, then you know you're on to a winner. Add to this that some of these companies saw their growth forged in the crucible of economic recession which dominated the end of the previous decade.
In the interest of thinking like an investor and diversifying our stocks, which is the MyWallSt way, we have spread our 5 picks over a number of sectors ranging from entertainment to restaurants.
Before we start on our list, it is important to note that the 5 companies chosen either surprised in their respective sectors or simply set the world alight. The likes of Apple (NASDAQ: AAPL), Align Technology (NASDAQ: ALGN), Google (NASDAQ: GOOGL), and many more have as much right to be on this list, but 5 is such a lovely rounded number, we thought we'd stop there.
Now, without further adieu:
When thinking of business as a whole, it is hard to look much further than Amazon (NASDAQ: AMZN). Over the past decade, Jeff Bezos' e-commerce empire has grown exponentially into the worlds of media entertainment, cloud services, music and beyond. Its trailing 10-year stock performance is a whopping 1,230%. In fact, if you had invested $1,000 in Amazon when MyWallSt suggested it in September 2015, you would have over $3,400 now. It's a great company to start your portfolio with.
Revenue from Amazon's core business of e-commerce has increased sevenfold since 2010, from an already massive base of $34.2 billion, and controls nearly half of the e-commerce market in the U.S. Amazon Web Service is now the third-largest enterprise software business in the world with $35 billion in sales in 2019, trailing only Microsoft and Oracle. Needless to say, Amazon has grown into a behemoth of modern industry and shows no signs of slowing down.
It might not be a surprise to many to see Broadcom (NASDAQ: AVGO) among the big winners of the past decade, considering that semiconductor stocks were the best-performing industry of the past 10 years. Following the recession in 2010, Broadcom stock sat at $17 per share, but now hovers around the $327 mark: an increase of just under 1,900%. Its market cap is also more than $120 billion, putting it among the top 50 most valuable companies in the world.
In recent years, the chip-manufacturing giant has turned its focus towards software, taking over CA Technologies in 2018 followed by Symantec this year. These purchases established Broadcom's authority as a one-stop-shop for businesses looking to build and manage data centers, making the company's 3.4% dividend yield possible and securing its place at the top in the coming decade.
A choice which may surprise many, and certainly one of the older companies in this list, Domino's Pizza (NYSE: DPZ) has seen a massive turnaround in fortunes over the past 10 years. The world's most well-known pizza brand has seen its stock price go from $10 per share in 2010 to around $290 today: a more than 2800% increase.
Through the appointment of CEO Patrick Doyle in 2010, the company began investing in online ordering, improved taste, and promoting the brand. It certainly paid off, as the company now controls 30% market share in U.S. pizza deliveries. The company's reinvented image can be best described in a quote by Maxim Group's senior restaurant analyst Stephen Anderson: "With close to 70% of all orders now online/mobile-based, Domino's is a tech company that just happens to sell pizza."
The undisputed champion of the market over the past decade is clearly Netflix (NASDAQ: NFLX). What CEO Reed Hastings managed to do with the streaming service is nothing short of miraculous. It is the top-performing stock of the past decade, returning a whopping 3,726%. What came through 2010 as a $7 stock, is now worth around $300.
The streaming giant disrupted the entire entertainment industry and has changed the way we watch TV forever, and boast more than 160 million global subscribers. By creating a media platform that is streamlined, adapts to the modern culture of quick and easy access, as well as cheaper than traditional cable, Netflix has managed to carve out its own sector.
However, the company has been downgraded by analysts lately and is seeing a rise in competition from the likes of Disney (NYSE: DIS). The next decade will put Netflix on the defensive, but it could well come out the other side stronger.
It might come as a bit of a surprise, but gaming developer Take-Two Interactive (NASDAQ: TTWO) is actually number 7 on the list of best performing S&P stocks of the last decade. The stock is up roughly 1,500% since 2010, with a market cap of close to $14 billion.
The company's main rivals such as Electronic Arts (NASDAQ: EA) and Activision Blizzard (NASDAQ: ATVI) don't even come close to matching Take-Two. The company grew its success on the back of the newest generation of consoles, as well as some hit series' which include 'Red Dead Redemption' and 'Grand Theft Auto'. As well as this, it has experienced a much higher return on its invested capital than its counterparts, which was nearly 18% last year.
Despite a slowdown in the past two years within the video game industry, it is certainly not game over for this video game giant.
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.
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