Amazon and Meta: Two Trillion-Dollar Stocks That May Deliver Long-Term Gains

Amazon and Meta are two trillion-dollar companies that have consistently delivered high returns for their investors. Since its inception in 1957, the S&P 500 has returned an average of 10.7% annually, but Amazon and Meta have significantly outperformed this benchmark.

Amazon's stock has surged by 349,326% since its IPO in 1997, with a compound annual return of 32%. Meta's stock has soared by 1,371% since its IPO in 2012, with a compound annual return of 21%. While past performance is not a guarantee of future results, these companies' underlying businesses are deeply embedded in the global digital economy.

The key to Amazon's success lies in its cloud computing division, Amazon Web Services (AWS), which offers hundreds of tools for businesses navigating the digital age. AWS accounted for $79.8 billion of Amazon's $382.1 billion revenue in the first half of 2026, and generated a staggering 39.4% operating margin.

However, investors are increasingly focused on the costs associated with Amazon's AI buildout, which has led to a reversal of free cash flow from an inflow of $18.2 billion to an outflow of $7.6 billion. This represents a brutal $25.8 billion reversal, and raises concerns about whether the spending will outpace returns for years to come.

Despite these challenges, Amazon's history suggests a pattern of heavy investment followed by long periods of monetization. Young investors who can stomach volatility may find that Amazon offers a compelling combination of established dominance and future growth potential.