2 Growth Stocks to Buy and Hold for the Next Decade

Over the past decade, growth stocks have stood out as a favorite choice for many investors. Factors such as low interest rates, positive investor sentiment, and a thriving technology sector made these stocks some of the top performers in the market.

If you are a long-term investor in search of reliable growth stocks to hold for the next ten years, consider the following two companies.

1. CrowdStrike

CrowdStrike Holdings (CRWD) has earned its place as a leading growth stock. However, an unexpected outage in July 2024 placed its reputation under scrutiny, leading to a decline in investor confidence. By early March, CrowdStrike shares had dropped by 4% over the past three months, which included a notable 26% drop from their record high in February.

Many investors are losing interest due to a less optimistic outlook for fiscal year 2026, but this reaction seems premature. CrowdStrike has many attributes that suggest it is a strong candidate for long-term investment.

One undeniable aspect of CrowdStrike is the effectiveness of its cybersecurity solutions. The company consistently ranks among the best in the cybersecurity field. Their impressive financial performance, along with consistent customer growth and retention, reinforces this reputation.

In the fourth quarter of fiscal 2024, CrowdStrike secured over 20 deals worth more than $10 million each, along with 350 deals exceeding $1 million. This achievement highlights the importance of cybersecurity and reflects strong support from its clientele.

The company reported a dollar-based net retention rate of 112%, indicating that existing customers are spending 12% more than they did the year prior. This metric is crucial for sustained revenue growth, allowing CrowdStrike to surpass $1 billion in subscription revenue for the first time in its history.

Growth prospects for CrowdStrike are robust, with management suggesting that the total addressable market (TAM) for its AI-native solutions could reach $250 billion by 2029, up from an estimated $116 billion this year. As the demand for cybersecurity solutions continues to accelerate, CrowdStrike is likely to remain a key player in this sector.

2. Amazon

Currently valued at over $2 trillion, Amazon (AMZN) might not immediately come to mind as a traditional growth stock, yet it possesses all the characteristics of one.

Amazon's rise can primarily be attributed to its flourishing e-commerce business, but my optimism for its future primarily hinges on its cloud computing service, Amazon Web Services (AWS).

AWS holds the top position in the cloud marketplace and has emerged as a significant revenue generator. In 2024, AWS revenues rose by 19% year-over-year, amounting to $107 billion, which surpasses the total revenue of major competitors like Target over the same timeframe. Additionally, its operating income climbed to $40 billion, up from $24.6 billion.

While AWS revenue represented about 17% of Amazon's overall revenue for 2024, it accounted for an impressive 58% of the total operating income. The e-commerce sector provides necessary cash flow, while AWS is crucial for Amazon's long-term profitability.

With the rapid growth of artificial intelligence (AI), every major cloud service is set to benefit, and AWS is uniquely positioned to sustain its lead by providing essential AI infrastructure. Its platforms, Bedrock and SageMaker, enable clients to create their own AI applications and machine learning models.

In 2024 alone, Amazon invested nearly $83 billion, a majority of which was allocated toward AWS growth, including enhancements in data centers and AI capabilities. With future spending plans of around $100 billion in 2025, Amazon clearly recognizes the value of e-commerce revenues in supporting its wider ambitions, while AWS remains critical for sustained growth.

Amazon is a stock that holds promise for long-term investment, despite the usual market fluctuations.

Growth, Stocks, Investment