2 Tech Stocks You Can Buy and Hold for the Next Decade

It was another great year for the stock market. At the time of writing, the benchmark, the S&P 500is up nearly 18%.

However, if you know where to look, there are even better opportunities to buy and hold for the long term. Let’s cover two tech stocks that are each up more than 50% year to date.

Image source: Getty Images.

Spotify Technologies

Spotify TECHNOLOGY (PLACE 0.09%) PEAK list of tech stocks you can buy and hold for the next decade. The company, which operates largues audio streaming platform, continues to impress.

Since early 2023Spotify shares surge 339%making it one of the best performing stocks during that period. The secret to his stock market success? Spotify combined revenue growth with cost reduction. When done right, this is a powerful combination.

Spotify’s trailing 12-month revenue rose to $15.7 billion from $13.6 billion a year ago. Similarly, trailing 12-month net income has grew up to $500 million, compared with a loss of nearly $800 million a year earlier.

In terms of revenue, the company relies on its premium users to provide around 90% of its sales. Those users pay a subscription fee for ad-free access to music, podcasts and audiobooks. Meanwhile, the company gets about 10% of them total ad-based listening revenue.

As for his expenses, Spotify has engaged in a number of cost-cutting measures in recent years, including cutting staff levels, cutting its marketing budget and canceling some content projects.

For its part, the company is firing on all cylinders. Of course, Spotify operates in a competitive field, with Apple, Amazonand Alphabet all offering them own form of audio streaming.

However, Spotify has more than held its own. With more than 600 million listeners and almost 250 million subscribers, Spotify has established itself in the audio streaming market. Investors looking for a growth stock with legs should consider Spotify.

Meta platforms

The next one is Meta platform (META -0.74%)the operator of Facebook and Instagram.

Of course, I had my concerns with Meta, particularly around the tens of billions of dollars the company chose to spend on the Metaverse. However, one fact is undeniable: Meta generates cash at an almost unbelievable level. This company can afford to take some expensive risks. And I’m sure that’s one of the reasons Meta CEO Mark Zuckerberg felt comfortable investing $46 billion in the company’s Reality Labs segment. — money that yet has ungenerated any return.

Anyway, come on take a closer look at Meta’s cash flow. In the last 12 months, the company generated 50 billion dollars in free cash flow.

META Free Cash Flow Data by YCharts

That’s a staggering amount and puts the Meta in rarefied air. Its free cash flow of $50 billionfor example, is comparable to the total free cash flows from the energy giants ExxonMobile and Chevron — mix.

No wonder the company initiated its first regular dividend payment this year. After all, finding the cash to pay those dividends isn’t a problem. The new payment policy shows that Facebook has had enough surplus cash profits on hand in pursuit of a shareholder-friendly cash management policy.

Additionally, as long as Meta Platforms remains disciplined in spending, there is much more cash flow on the road. Analysts expect the company to grow sales by 20% this year and another 13% in 2025. These growing revenue numbers should support even more free cash flow and maybe even higher dividend payments at a given time. All of this should make investors happy to own Meta platforms for the next decade.