In the ever-evolving realm of stock investments, achieving a portfolio teeming with high-performing stocks is a coveted but challenging goal. Nevertheless, certain stocks have solidified their reputations as “monster stocks,” consistently delivering impressive returns and demonstrating promising growth prospects. Notably, two giants in the tech sector—Microsoft and Netflix—have showcased significant performance over the past decade and continue to exhibit substantial potential.
Microsoft, a behemoth in the tech industry, encompasses a wide array of products and services, including the widely used Office 365 suite, the Azure cloud computing platform, the Xbox gaming ecosystem, and the Windows operating system. Over the past decade, Microsoft has averaged annual returns of about 25%, with the company recently reporting a year-over-year revenue increase of 18% and a net income rise of 12% in the first quarter of fiscal 2026. Currently valued at approximately $429.91 per share, Microsoft boasts a market capitalization of about $3.2 trillion. Its decision to invest heavily in artificial intelligence has positioned the company at the forefront of innovation in the tech sector. CEO Satya Nadella highlighted the significance of their investments in AI, stating, “Our planet-scale cloud and AI factory… is driving broad diffusion and real-world impact.” Microsoft has also established a robust dividend, yielding around 0.79%, which has seen steady growth—up from $2.09 per share in 2020 to $3.40 recently. Furthermore, its forward-looking price-to-earnings (P/E) ratio of 29 is slightly below its five-year average, indicating a reasonably priced stock with strong growth prospects, particularly in its Azure platform, which reported a remarkable year-over-year revenue increase of 40%.
On the other hand, Netflix has also emerged as a compelling option for investors, averaging annual gains of 24% over the past decade. The company reported revenues of $12 billion in the fourth quarter of 2025, reflecting an 18% increase year over year, with net income soaring by 29%. Netflix’s foray into advertising has been a key factor in its financial success, with ad revenue more than doubling compared to the previous year. Despite facing some turbulence, including a 12% downturn over the past year due to uncertainties around its proposed acquisition of Warner Bros. Discovery—a bid that exceeds $70 billion—the stock remains appealingly valued. With a recent forward P/E ratio of 27, Netflix’s valuation is well below its five-year average of 33, presenting an opportunity for prospective investors.
Both Microsoft and Netflix exemplify the potential for substantial growth in the stock market. Their impressive trajectories and ongoing investments in innovation warrant close attention from investors aiming to build a portfolio that includes high-growth stocks. While these two companies lead the way, they are just a glimpse into the broader landscape of growth stocks that investors can explore.
