2 Growth Stocks to Buy and Hold for the Next Decade

Core Insights - Focusing on high-quality businesses with durable competitive advantages can be a lucrative long-term investment strategy [1] - Global spending on information technology is projected to reach nearly $5.4 trillion in 2025, primarily driven by the adoption of artificial intelligence [2] Meta Platforms - Meta Platforms is a leading player in social media and digital advertising, accelerating investments in AI infrastructure to drive growth [5] - In Q2 2025, Meta's revenues increased by 22% year over year to $47.5 billion, with an operating margin of 43% and free cash flow of $8.5 billion [5][10] - Digital advertising remains the primary growth driver, with Meta leveraging AI technologies to enhance ad targeting and user engagement across its platforms [6] - Threads has surpassed 350 million users, and advertising is being introduced across its platforms, including WhatsApp [7] - Meta is rolling out subscriptions for WhatsApp channels, connecting businesses with over 1.5 billion daily active users [8] - The company plans capital expenditures of $66 billion to $72 billion in 2025 to expand its AI infrastructure [9] - Meta's shares trade at a valuation of nearly 28.5 times forward earnings, indicating potential for long-term growth [10] Amazon - Amazon is focusing on cloud computing, advertising, and AI to fuel its next growth chapter [11] - In Q2 2025, Amazon's revenue increased by 13.3% year over year to $167.7 billion, with operating income rising 31% to $19.2 billion [12] - Amazon Web Services (AWS) accounted for 30% of the global cloud infrastructure services market, with revenue growing 17.5% year over year to $30.9 billion [13][14] - AWS has a backlog worth $195 billion, reflecting strong demand for its infrastructure and AI services [14] - Amazon's e-commerce business is improving through automation and robotics, delivering 30% more items on the same or next day compared to the previous year [16] - Advertising revenues grew by 22% in Q2 2025 to $15.7 billion, driven by proprietary data from its platforms [17] - Amazon's shares trade at 34.6 times forward earnings, indicating a premium valuation despite growth potential [18]