Two Promising Growth Stocks for Long-Term Portfolio Building

The Case for Extended Investment Horizons

Successful wealth building through equity markets requires a fundamental shift in mindset. Rather than reacting to quarterly earnings or short-term price volatility, investors who think in terms of decades—whether for retirement or major financial milestones—naturally benefit from market resilience and compounding returns. This approach has historically helped investors navigate through various market cycles without emotional decision-making. For those seeking growth opportunities with multi-year runway, we examine two companies that demonstrate both operational scale and expansion potential.

Shopify: The E-Commerce Infrastructure Leader

Business Model and Competitive Advantages

Shopify operates as the predominant software infrastructure for online retail in North America, offering an integrated platform where merchants of varying sizes can conduct transactions across channels (online storefronts, physical retail, social commerce). The company has constructed significant switching costs through deep customer investment in their digital storefronts, creating a high-retention ecosystem difficult for competitors to penetrate.

Financial Performance and Operational Improvements

Recent quarters reveal impressive momentum. Q3 2025 showed revenue climbing 32% year-over-year to $2.84 billion, with gross merchandise volume reaching $92 billion. Operating income surged 53%, while free cash flow margins maintained strength at 18%—the ninth consecutive quarter of double-digit margins. The company achieved profitability and improved bottom-line performance after spinning off its logistics division, demonstrating disciplined capital allocation.

Strategic Developments and Global Expansion

International markets remain substantially underdeveloped for the platform. Q3 data revealed international GMV jumped 41% year-over-year, underscoring successful market share capture outside North America. The Winter 2026 release introduced over 150 enhancements emphasizing artificial intelligence capabilities, including intelligent assistant tools and AI-powered storefront automation. Strategic partnerships—including Temu integration and carrier logistics partnerships—expand merchant flexibility and reach. During the 2025 holiday shopping season, platform merchants processed $14.6 billion in Black Friday and Cyber Monday sales, up 27% from the prior year.

Market Reception and Valuation

Market participants have responded positively to the company’s execution, with shares rising approximately 60% since the beginning of 2025. For investors seeking exposure to the e-commerce growth opportunity with a dominant platform operator, the risk-reward profile appears favorable over extended timeframes.

SoFi Technologies: Digital Banking and Financial Services Diversification

Ecosystem Strategy and Customer Cross-Selling

SoFi’s business approach centers on acquiring customers through one product (typically lending) while encouraging adoption of additional services (deposit accounts, investment products, insurance) to increase lifetime value and reduce acquisition costs. This cross-product strategy has accelerated, with 40% of new products in the latest quarter opened by existing customers—the highest rate since 2022.

Growth Metrics and Scale Expansion

Membership reached 12.6 million in Q3 2025, growing 35% year-over-year, while total products nearly doubled to 18.6 million (36% YoY growth). These metrics underscore successful customer acquisition and increased product penetration among the existing base.

Revenue Diversification Away from Interest-Rate Dependent Lending

A key strategic shift involves building stable, recurring revenue streams beyond traditional lending. Fee-based income—including loan platform services, payment processing interchange, and brokerage commissions—grew 50% to $409 million, now representing over 40% of total revenue. Through acquisitions of Galileo and Technisys, SoFi provides backend infrastructure and payment processing to financial and non-financial institutions, creating scalable recurring revenue with minimal legacy system constraints. This segment generated $950 million in Q3 revenue, expanding 38% year-over-year.

Profitability Achievement and Financial Trajectory

The company transitioned to consistent profitability through 2025, with Q3 net income reaching $139 million—a 129% year-over-year increase. Revenue across the platform grew 38% annually to $950 million. Market participants rewarded this progression with share appreciation exceeding 90% since the start of 2025.

Long-Term Investment Considerations

Both companies demonstrate rapid growth, improving unit economics, and strategic positioning within attractive secular trends. Shopify’s dominance in e-commerce infrastructure and SoFi’s ecosystem expansion in digital financial services suggest meaningful expansion opportunities over the coming decade.