<p>Growth stocks are a reliable path for investors to build lasting wealth for retirement. Patiently holding shares of outstanding companies is the closest thing to putting your money on autopilot for long-term capital appreciation.</p>
<p>To support you on your wealth-building journey, here are two outstanding businesses that dominate their respective industries and remain solid stocks to buy in the new year and hold for a lifetime of compounding returns.</p>
<div><img alt="An ascending bar chart with a small toy-like rocket indicating upward growth." width="880" height="528" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NDg4NTQvcm9ja2V0LWdyb3d0aC5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NDg4NTQvcm9ja2V0LWdyb3d0aC5qcGcmdz0zODQw"/>
<p>Image source: Getty Images.</p>
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<h2>Netflix</h2>
<p><strong>Netflix</strong> <span class="ticker-mention inline-flex items-center font-bold">(NFLX <span class="ml-1 text-red-900">1.64%</span>)</span> has been one of the best-performing growth stocks of the past few decades, and it enters 2026 stronger than ever. Following the idea that winners tend to continue winning, Netflix remains a solid choice. It's growing revenue and profits at a healthy clip, as the streaming leader achieved record viewership in the United States and United Kingdom in the third quarter.</p>
<p>The pending deal to acquire <strong>Warner Bros</strong> is a bold move that could cement Netflix's competitive position in the entertainment industry. It will add iconic film and TV content going back a century, along with HBO and HBO Max. That means Netflix could soon own the rights to <em>Game of Thrones</em>, the <em>DC Universe</em>, and <em>Friends</em>, which is just a small sample of the value this deal brings to Netflix.</p><div><div id="foolcom_sidebar_top_container"></div></div>
<p>The $82 billion offer is a good deal for Netflix, considering it spent $17 billion last year on content production. Netflix is buying a century's worth of content for what it spends in five years. This additional content will make Netflix's service more appealing to current and new subscribers.</p><div><div><div>Advertisement</div><div><div></div></div></div></div>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Netflix Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05GTFgucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05GTFgucG5nJnc9MTI4"/></div><div><h2>NASDAQ: NFLX</h2><div>Netflix</div></div></div><div><div><div>Today's Change</div><div>(-1.64%) $-1.54</div><div>Current Price</div><div>$92.22</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$428B</div><div>Day's Range</div><div>$91.80 - $94.10</div><div>52wk Range</div><div>$82.11 - $134.12</div><div>Volume</div><div>540K</div><div>Avg Vol</div><div>43M</div><div>Gross Margin</div><div>48.02%</div></div></div></div></section>
<p>It's also a good deal for Warner Bros, as the film studio can leverage Netflix's extensive financial resources and talent to better monetize its film library. Despite a competing bid from <strong>Paramount</strong>, Netflix is confident in closing the deal, given the potential to create a truly unstoppable entertainment juggernaut over the long term.</p><div><div id="in_line_article_pitch_container"></div></div>
<p>Even without the acquisition, Netflix would still be an excellent investment. Analysts were already expecting the company's earnings per share to grow at an annualized rate of 23% over the next several years. However, the addition of Warner Bros will enhance Netflix's long-term earnings growth prospects, as the company expects to realize approximately $2.5 billion in cost savings following the full integration of Warner Bros' business.</p>
<p>With more than 300 million subscribers and growing, Netflix has a promising future ahead, making the stock a solid investment for 2026.</p>
<h2>Microsoft</h2>
<p>With artificial intelligence (AI) poised to transform businesses and entire industries, <strong>Microsoft</strong> <span class="ticker-mention inline-flex items-center font-bold">(MSFT <span class="ml-1 text-red-900">1.72%</span>)</span> is well-positioned to lead the way. It all starts with its robust cloud computing infrastructure, with Microsoft Azure being one of the fastest-growing cloud platforms for enterprises.</p>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Microsoft Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL01TRlQucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL01TRlQucG5nJnc9MTI4"/></div><div><h2>NASDAQ: MSFT</h2><div>Microsoft</div></div></div><div><div><div>Today's Change</div><div>(-1.72%) $-8.34</div><div>Current Price</div><div>$475.28</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$3.6T</div><div>Day's Range</div><div>$474.75 - $484.67</div><div>52wk Range</div><div>$344.79 - $555.45</div><div>Volume</div><div>420K</div><div>Avg Vol</div><div>23M</div><div>Gross Margin</div><div>68.76%</div><div>Dividend Yield</div><div>0.70%</div></div></div></div></section>
<p>The software leader continues to see robust demand for AI cloud services. Revenue from Microsoft Cloud, which includes Azure and other cloud services, hit $49 billion last quarter, up a solid 26% over the year-ago quarter. It also reported nearly $400 billion in remaining performance obligations -- a year-over-year increase of 50% -- signaling substantial and growing commitments from major enterprise customers.</p>
<p>The enormous number of commitments implies that Microsoft is seeing more demand for AI services than its available compute capacity can handle in its data centers. This is driving significant investment in hiring talent and securing more data center infrastructure. Microsoft has consistently earned high returns on invested capital, indicating that these investments should drive further earnings growth and increase the value of the stock over the long term.</p>
<p>CEO Satya Nadella said on the last earnings call that Microsoft is building a &#34;planet-scale cloud and AI factory.&#34; Its Azure AI Foundry is serving 80,000 customers. Companies are using Azure to develop their own AI software applications with their proprietary data. This helped drive a 40% year-over-year increase in Azure revenue last quarter, indicating a significant market opportunity.</p>
<p>Microsoft is fully committed to capitalizing on AI. With $147 billion in trailing 12-month operating cash flow, the company has the financial resources to invest aggressively in this transformative technology and widen its competitive moat.</p>
<p>Microsoft is one of the strongest companies you can invest in for the long term. It can make significant investments in AI infrastructure while continuing to pay regular dividends to enhance shareholder returns.</p><div id="article_pitch_container"></div><div id="promobox_container"></div>

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<p>The article highlights two growth stocks to consider for long-term investment: Netflix and Microsoft. Netflix is set to strengthen its market position with a $82 billion acquisition of Warner Bros, enhancing its content library and expected earnings growth. Meanwhile, Microsoft is positioned to lead in AI and cloud computing, with significant revenue growth from its Azure platform and a commitment to investing in AI infrastructure. Both companies are seen as solid investments for 2026 and beyond, promising substantial returns for investors.</p>

- Growth stocks like Netflix and Microsoft are highlighted as reliable investments for building long-term wealth.  
- Netflix is making a bold $82 billion acquisition of Warner Bros, which will bolster its content offerings and potentially enhance its earnings growth, while Microsoft is well-positioned in the AI sector with strong demand for its cloud services.  
- Both companies are expected to provide substantial long-term capital appreciation for investors in 2026 and beyond.

2 Unstoppable Stocks to Buy in 2026 and Hold Forever