2 Game-Changing Stocks That Could Build Generational Wealth

There’s no shortage of investment ideas in the market. But every once in a while, a few names emerge that offer something bigger—an opportunity to build lasting wealth over time. The key isn’t in flashy trades or trying to time the market. It’s about identifying strong companies with sustainable growth paths and sticking with them.

Two such names—Alibaba and Toast—have been gaining attention for all the right reasons. Their current positioning and future potential suggest they could reward patient investors well beyond the next few quarters.

1. Alibaba

Alibaba (NYSE: BABA) might not be the first name that comes to mind for U.S. investors looking for tech exposure, but it deserves a serious second look. This Chinese heavyweight plays in multiple high-value arenas—e-commerce, cloud computing, and AI—all while trading at a valuation that doesn’t reflect its full potential.

The company’s recent earnings paint a picture of recovery. Despite broader economic pressures, Alibaba posted a 23% increase in earnings year over year. That kind of performance typically demands a premium, but the stock still trades at just 14 times trailing 12-month earnings—well below where many peers sit.

AI Is Fueling the Next Chapter

Instagram | alibaba.cloud | Alibaba’s cloud intelligence revenue grew 18% last quarter, largely due to triple-digit growth in its core AI services.

AI isn’t just a buzzword for Alibaba—it’s becoming a core growth driver. The company reports triple-digit growth in AI services within its cloud division, and overall, cloud intelligence revenue rose 18% last quarter. As demand for enterprise cloud services rises, Alibaba stands to benefit from being an early and capable player in this space.

E-commerce Still Holds Strong

Alibaba’s domestic platforms like Taobao and Tmall remain revenue machines, with customer management revenue up 12% last quarter. The margins here are impressive, largely because this segment earns from merchant fees rather than product sales. International business is showing promise, too. Its AliExpress arm saw a 22% year-over-year revenue lift, suggesting strong traction in global markets.

Market Confidence is Building

One important detail: Alibaba’s leadership has been actively buying back shares. That’s often a strong indicator that management believes the stock is undervalued. With a forward P/E around 12 based on Wall Street’s projections, the pricing seems low for a company of this scale. For long-term investors, this could represent a strategic buying window for one of the most influential tech firms globally.

2. Toast

In a space as competitive as restaurant tech, it takes more than just good software to stand out. Toast (NYSE: TOST) has done just that, building a loyal user base by solving real-world problems for food businesses of all sizes. The company offers a robust platform covering everything from payments and ordering to marketing tools—designed specifically with hospitality in mind.

Rapid User Adoption Signals Trust

linkedin.com | Solving real-world problems for food businesses of all sizes, Toast has built a loyal user base.

Toast continues to grow fast. In Q1, the company added around 6,000 new restaurant locations, pushing its total to approximately 140,000. These aren’t just small chains either—names like Applebee’s and Topgolf recently came on board. That kind of customer growth points to strong product-market fit and a brand reputation that resonates.

Profitability Is Around the Corner

For years, Toast focused on growth over profit. That’s changing. In Q1 alone, net income reached $43 million, a big swing from the $56 million loss recorded in the same quarter a year ago. On a trailing 12-month basis, Toast has generated $158 million in net income, which has added momentum to the stock price and built more confidence in the company’s path forward.

Room to Expand in a Huge Market

The U.S. restaurant industry employs over 14 million people and contributes roughly $3.5 trillion to the economy. With a market cap of around $25 billion, Toast still has room to grow. Its platform is designed to scale, and as more restaurants shift to cloud-based systems, Toast is well-positioned to serve them.

Why These Stocks Deserve a Spot in Your Portfolio

Building long-term wealth through stocks isn’t about hype—it’s about owning companies with durable advantages, proven leadership, and strong growth paths. Alibaba and Toast each offer something rare: real traction in large markets, compelling financial progress, and valuation levels that leave plenty of upside.

Alibaba has the infrastructure, AI integration, and earnings growth to reassert itself as a global tech leader. Toast is making a strong case for leadership in restaurant tech, with rapid user adoption and improving profitability.

For investors looking beyond short-term moves and toward meaningful, long-term portfolio gains, these two names could be worth a closer look. When held with patience and confidence, they might just be the type of stocks that leave a financial legacy.