3 Breakthrough Growth Stocks You Can Buy and Hold for the Next Decade

The year is coming to an end and what a year it has been for the stock market. At the time of this writing, the S&P 500, Nasdaq ComposedAnd Dow Jones Industrial Average have increased by 26%, 28% and 19% respectively.

However, there are many growth stocks that have far outperformed benchmark indices and could be worth considering over the long term. Here are three investors you should know.

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1. Spotify technology

First high is a streaming giant Spotify (PUT 1.84%).

The company, which operates the world’s most popular music streaming app, continues to impress markets with its growth. In its most recent quarter (the three months ended September 30), Spotify reported 640 million monthly active users (MAUs), an 11% increase from 574 million MAUs a year ago.

Additionally, the company’s number of paid subscribers increased 12% to 252 million. Paid subscribers are arguably even more important figure to Spotify, as subscription fees account for 88% of the company’s total revenue.

At the same time Time As the company has accelerated the conversion of total MAUs into paying subscribers, management has also reduced costs. Accordingly, Spotify’s profitability has skyrocketed. The company reported an operating result of 454 million euros, compared to just 32 million euros a year earlier.

In summary, Spotify offers growth-oriented investors what they want to see. The company’s user base, revenue and profits are growing as Spotify continues to expand into new markets and increase its subscriber base. That’s a recipe for continued success, which is why investors should consider it as a long-term stock buy and hold.

2. Reddit

Next there is Reddit (RDDT 2.94%).

Reddit launched in an initial public offering (IPO) less than a year ago. But as of this writing, the stock is up a remarkable 180%.

This is all thanks to Reddit large three financial indicators:

• Robust sales growth
• Strong user growth
• Huge gross margin

Starting with revenue, Reddit grew its quarterly revenue (for the three months ended September 30) to $348 million – a 68% increase year-over-year. Likewise, the company’s daily active uniques (DAUqs) increased by 47% to 97 million.

That’s rapid growth, and the best thing is that the company is benefiting from it growth by increasing profitability. The gross profit margin increased to 90% in the last quarter – the best value always for the company and more than 200 basis points higher than the same period a year ago.

Admittedly, Reddit remains a newcomer to the stock market, but its first year as a public company has been remarkable. Growth-oriented investors may want to consider this high-flyer as a long-term buy-and-hold candidate given its solid growth and potential for strong profitability down the road.

3. Nvidia

Lastly there is Nvidia (NVDA 3.48%).

Clearly, Nvidia has had a good run; With a market cap of $3.3 trillion, it is already the second-largest company in the world (as of this writing).

That means, There are reasons to believe Nvidia stock can continue to rise.

FirstConsider the company’s most recent earnings report (for the three months ended October 27). Nvidia reported really great Pay; Revenue rose 94% year over year to $35 billion. Remember thatThat’s $35 billion quarterly Sales – but it roughly corresponds to annual sales revenue for iconic companies like visa, NetflixAnd Starbucks.

Furthermore, Nvidia’s sales have skyrocketed to these incredible heights in just a few years. For example, in the same period Two years ago, Nvidia reported revenue of less than $6 billion.

In other words, the growth in demand for artificial intelligence (AI) chips is staggering. Over and beyond, It is not expected To end soon. In addition to the fantastic results reported by NvidiaThe company’s leadership also provided guidance that exceeded expectations. In short, management expects sales of the company’s Blackwell AI chips to be even stronger going forward than previously forecast.

In conclusion, Nvidia’s prominent role in the AI ​​ecosystem makes it a compelling choice for investors seeking a buy-and-hold stock in the AI ​​sector.