2 Monster Stocks to Buy and Hold for a Decade

Size isn't everything on equity markets, but large-cap stocks tend to carry significantly less risk than small caps. And while smaller players as a group make up for that with higher upside potential, it's hard to pick which ones will succeed and which ones will cease to exist within a decade. For those for whom that risk isn't worth it, plenty of well-established corporations that have been delivering excellent financial results for years still have plenty of room to grow. Let's consider two that could outperform broader equities over the next 10 years: Amazon (NASDAQ: AMZN) and Adyen (OTC: ADYE.Y).

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1. Amazon

Amazon is a leader -- and in some cases the leader -- in many of the markets in which it operates. That includes video streaming, music streaming, e-commerce, digital advertising, and, of course, cloud computing. Dominating even one of these industries is no easy feat. Performing that well in several of them, as Amazon is doing, is incredibly impressive. And over the next decade, the company should hang on to growth drivers that will help it post strong financial results throughout and deliver outstanding returns.

Amazon's digital ads business has been one of its fastest-growing segments. It carries much higher margins than its e-commerce operations, and, since Amazon is one of the most visited websites in the world -- and benefits from strong network effects and a powerful brand name -- traffic to the company's main platform should remain strong, leading to increased ad demand.

In cloud computing, Amazon is making significant strides. The company's cloud division, Amazon Web Services (AWS), is already responsible for most of its operating profits and is seeing strong momentum thanks to artificial intelligence (AI). This business should be Amazon's most crucial tailwind through 2035. The company could also make progress in other areas.

Amazon's healthcare ambitions, through Amazon Pharmacy and Amazon One Medical, are gaining traction, partly thanks to the perks they offer (fast and convenient virtual appointments coupled with integrated pharmacy services and same-day delivery), as well as the company's large base of more than 200 million Prime members.

Even within its e-commerce business, Amazon should continue to make progress as it aims to boost margins in that unit. Amazon might be worth $2.5 trillion at the time of this writing, but the company still has plenty of upside for investors willing to hold the stock through the next decade.

2. Adyen

Adyen is a leading fintech specialist based in the Netherlands. The company's selling point is a service that enables corporations -- especially those operating in multiple countries -- to accept and process various payment methods across digital and in-person transactions, all on a single, integrated platform that also offers risk management and other financial solutions. Adyen serves as a payment processor, gateway, and acquiring bank.

Without it or a similar service, multinational corporations would have to deal with an inefficient, fragmented platform featuring different processors and acquirers across various regions. The value it provides to its clients is why Adyen has achieved tremendous success. The company routinely records solid revenue and earnings growth. True, the company faced some challenges in recent years, as its margins declined due to its decision to double down on hiring to plan for the future. Revenue growth also decelerated, partly due to increased competition.

Adyen's performance hasn't been that bad considering all that, and it is even turning the corner in some categories. Through the first six months of the year, the company grew its revenue by 20% year over year to 1.09 billion euros ($1.3 billion), while its EBITDA (earnings before interest, taxes, depreciation, and amortization) margin came in at a strong 50%, compared to 46% in the year-ago period.

Adyen should benefit from significant tailwinds over the next decade, including an increased push in markets where it doesn't have as big a presence -- such as the U.S. Adyen is also aggressively going after large-format retail clients as historically, many (not all) of its clients have been e-commerce players or others that sell digital products -- the list includes Spotify, eBay, Etsy, and Uber Technologies.

Adyen's new focus should provide it with ample fuel for growth. And despite the competition, the company has developed high switching costs and a strong brand name within its niche. Adyen is well positioned to perform strongly over the next decade.

Prosper Junior Bakiny has positions in Amazon. The Motley Fool has positions in and recommends Adyen, Amazon, Etsy, Spotify Technology, Uber Technologies, and eBay. The Motley Fool has a disclosure policy.