Two Growth Stocks for Long-Term Investors Seeking Futures

In the landscape of capitalism, where many toil under the shadow of giants, lies the promise of growth—a slow-burning ember that, if carefully nurtured, can erupt into a fierce blaze of wealth creation for the tenacious investor. It beckons those who understand not only the services they cherish but also the many souls who use them. Herein, two companies rise like green shoots through cracked earth—ready for a decade of financial tending.

So without further ado, let us wander down this path of possible prosperity.

1. Spotify Technology

In a world often deafened by the clamor of brutal competition, Spotify Technology (SPOT) emerges as a melodic survivor. The echoes of its stock have soared over the years, climbing a staggering 700% from the desolate low it met in 2022 alongside the broader market malaise. As with a seasoned farmer, it is not merely the past that counts, but the fertile soil ahead. Spotify’s horizon gleams with potential for revenue and earnings, promising a melodic harvest for the coming decade.

Wall Street, once skeptical, now stirs with awareness of Spotify’s latent power, particularly its pricing strategy. At a modest $11.99 for its premium subscription, it sits in stark contrast to the $17.99 demanded by Netflix. The company has seen its paying subscribers swell to 268 million, a significant leap from the 210 million of yesteryear, as if each note of music played beckons another listener to join the symphony.

As history shows, the price of melody has diminished; where once $81 per capita supported the music industry in 1999, the figure plaintively droops to $37 in 2020, according to J.P. Morgan. This suggests that Spotify’s well of monetization lies yet untouched. The chords of opportunity reverberate in the digital air—waiting for the right moment to harmonize.

Within Spotify’s garden, the bulk of revenue springs from those premium subscription plans, swelling 16% over the previous year to a robust $3.7 billion in the first quarter. Advertising revenue, like the gentle rains of spring, is also rising, albeit more modestly at 8%. With the recent introduction of automated tools facilitating ad purchases, Spotify could very well harvest a richer bounty from advertisers hungry for visibility.

And in the realm of podcasts, Spotify nurtures its growth, enriching the soil for its creators through the Spotify Partner Program. As this initiative sweeps through new markets, it bears the promise of deeper roots, reaching a wider audience, and increasing engagement.

Yet, lurking beneath the surface are the roots of dependency; Spotify relies on a network of record labels for streaming rights, unlike video purveyors who possess the luxury of original content. Nevertheless, with a staggering 678 million monthly users, the company’s sway within the music industry strengthens. Record labels, eager for exposure, will find it difficult to ignore this formidable platform.

As free cash flow and operating margins blossom, analysts predict Spotify’s free cash flow could expand at an annualized rate of 22% by the year 2029. Thus, the sun continues to rise for dedicated investors expecting robust returns on their faithful stewardship.

2. Robinhood Markets

Robinhood Markets (HOOD), a young scion of financial disruption, found its wings amidst the turbulence of a global pandemic, spreading its free-trading ethos like wildflowers across a sun-kissed field. After facing the inevitable downturn of 2022, it finds itself ready to seize a multitrillion-dollar opportunity—a beguiling vision of future growth.

While the old guard of brick-and-mortar brokers, adorned in their plush suits and glimmering accolades, dominate the field, Robinhood has captured the attention of a new generation with a simple, user-friendly mobile experience. It is crafting loyalty as deftly as a skilled artisan shapes clay into vessels of beauty and purpose.

One initiative of note, the enticing IRA match offer, invites customers into its fold, offering a 1% match on deposits—for the lucky Robinhood Gold subscribers, that figure swells to 3%. This seemingly extravagant gift, akin to a farmer giving a taste of his harvest, has drawn even the affluent into the embrace of Robinhood’s offerings, yielding a generous 50% increase in revenue year on year for the first quarter and doubling its earnings.

In the first quarter of 2023, customers entrusted Robinhood with $78 million. But the winds of change see new net deposits and the acquisition of TradePMR propel Robinhood’s platform assets to unprecedented heights—$221 billion as of Q1 2025—an accumulation that promises to accumulate toward the trillions in decades ahead.

Estimates from Cerulli Associates whisper of an $84 trillion wealth transfer by 2045—a bounty mostly held by baby boomers, ready to flow into the channels of new investments. Robinhood, recognizing its place as a budding platform for the upcoming generation of investors, positions itself to capture a share of this impending windfall.

The company has announced a range of new wealth management services, like Robinhood Strategies, alongside the imminent launch of Robinhood Banking. These offerings promise to provide high-yield savings, estate planning, and even the glitz of attending events like the Masters and Met Gala—a delicate blend of opportunity and allure designed to enrich life’s fabric.

In time, Robinhood is destined to embrace the entirety of services offered by its more established counterparts. Yet, driven by the vigor of necessity, it seeks ways to deliver added value, cultivating a loyal customer base in the process. If the company can traverse this path with diligence, it could attract trillions in assets over the years—a horizon blooming with potential.

For instance, envision if it cultivates its platform assets to $1 trillion, converting 2% into revenue—this could possibly yield an annual revenue of about $20 billion, eclipsing the $3 billion reported in 2024. As the sun rises on its current market cap of approximately $90 billion, a quiet optimism whispers that this valuation may very well undervalue the vast streams of assets soon to flow in.

With a resurgence on the horizon, it is wise to brace for a momentary retreat in the stock’s ascent. Yet as the tides of fortune shift, the seeds of this narrative have been sown, offering a legacy worth considering as investors ponder the landscapes ahead. 🌱

2025-07-26 12:00

1. Spotify Technology

2. Robinhood Markets

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