2 Stocks to Buy With $5,000 and Hold for a Decade

The former was an early investor in the latter

They both dominate their respective niches in the ing industry and have duced market-beating returns over the long term

Here's one more thing Netflix and Roku have in common: excellent long-term spects that could lead to substantial gains over the next decade

Here's the bull thesis for these market leaders

Netflix Netflix has been firing on all cylinders thanks to its excellent financial results

Image source: Getty Images

Netflix is posting strong financials despite mounting competition in the ing industry, which some thought would eventually erode its market

But as evidence of the strength of its brand power, the company recently increased its prices once again

Netflix's ability to thrive even as new ing services keep popping up says a lot its spects

Ing still has significant room to grow as the switch from cable continues

Over the next decade, it could make significant headway into this enormous, untapped potential

The company's strategy to achieve that feat should remain the same: Create content that viewers love to watch and that spreads through word of mouth, leading to more paid rs on its platform, more data to help guide content duction, and even better content

A wonderful network effect has powered Netflix's success for a while now

There will be some challenges, including more competition and economic issues that might make people hesitant to put up with its price hikes, among others

However, Netflix has consistently demonstrated its ability to perform well despite these challenges, and I expect the company to continue doing so over the next decade

The stock is still worth buying after the impressive run it has had over the past year

Roku Roku's platform enables people to access most of the major ing services, making the company's ecosystem an attractive hub for advertisers to target consumers

That's how Roku makes the lion's of its revenue

Although it has encountered some headwinds in recent years -- including a slowdown in ad spending and declining average revenue per user (ARPU) -- Roku has somewhat recovered over the trailing-12-month period

However, Roku remains unfitable, although it is also making gress on the bottom line

The ing leader's net loss per in the period came in at $0. 19, much better than the $0. 35 reported in the prior-year quarter

Although long-term investors may be concerned the persistent red ink on the bottom line, recent developments show why Roku is a mising stock to hold onto

The company signed a partnership with Amazon, another leader in the connected TV (CTV) space

This initiative will give advertisers far more bang for their buck, as early tests of the integration show

It also highlights the value of Roku's ecosystem, the leading one in the CTV space in North America

Over time, the company's platform will attract more advertising dollars, especially as ing viewing time continues to increase

That's why investors should look past the red ink, for now

Roku's long-term spects remain intact

Even its ARPU decline in recent quarters was due to its focus on expanding its audience in certain international ; it is still early in its monetization efforts in those regions

As Roku's initiatives in these places ramp up, while the company continues to make headway in more mature, Roku should eventually become fitable and der strong returns along the way

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors

Sper Junior Bakiny has positions in Amazon

The Motley Fool has positions in and recommends Amazon, Netflix, and Roku

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