Top Growth Stocks for Long-Term Investment Success
Market fluctuations are a part of investing, but building a substantial nest egg in the Stock market is achievable by consistently adding shares of quality companies and holding them over time. Here are two promising growth stocks that are trading well below their recent highs and could offer solid returns in the coming decade.
1. Meta Platforms
Meta Platforms (NASDAQ: META) boasts a strong competitive position, with over 3.4 billion people engaging with its social media apps daily. This extensive user base generates significant revenue, resulting in a profit of $66 billion last year. The Stock currently trades at a fair valuation and the company is actively investing in new technologies that will drive future growth.
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Meta’s focus on artificial intelligence (AI) is enhancing user engagement through better content recommendations and improved ad targeting. In the first quarter, revenue grew by 16% year over year, while net profit increased by 35%.
CEO Mark Zuckerberg has identified five key growth areas: advertising improvements, enhanced user experiences, Meta AI, AI-powered devices, and business messaging. The company plans to allocate at least $64 billion for capital expenditures this year, an increase from $37 billion in 2024, to support its growth strategy.
Meta has a strong history of converting capital investments into shareholder value. The Stock has consistently provided market-beating returns, primarily due to its strong investment returns. Zuckerberg believes that even if not all investments succeed, the company can still reward its shareholders.
Business messaging represents a significant revenue opportunity, especially in countries like Thailand with low labor costs. Zuckerberg sees AI as a tool that can make messaging operations more cost-effective in larger economies, including the U.S., thus opening up substantial revenue pathways.
Thailand ranks among Meta’s top 11 markets by revenue, driven by the popularity of its messaging apps. The Stock trades at a reasonable 23 times this year’s expected earnings. Given its growth potential, Meta is well-positioned for double-digit annual earnings growth, which could lead to even greater returns for investors.
2. Reddit
Reddit (NYSE: RDDT) is another advertising-based platform experiencing robust growth. At the end of the first quarter, it reported 108 million unique daily users, a 31% year-over-year increase.
Following its initial public offering in March 2024, Reddit’s Stock experienced a surge but subsequently fell by over 50% from its peak since February. The strong first-quarter results released on May 1 suggest that this decline presents a valuable buying opportunity.
Reddit’s web presence and user engagement are attracting advertisers. The latest quarter saw a 61% revenue increase year over year, accompanied by a healthy operating cash flow margin of 33%. This reflects its potential as a strong growth investment.
International ad revenue growth was significant, rising by 82% year over year in Q1, marking the highest rate of growth in three years. With over half of its user base located outside the U.S., Reddit has considerable room for expansion, particularly since international markets only contribute 20% of its revenue.
Reddit is becoming a preferred destination for users seeking product information, making its platform especially appealing to advertisers. The visibility of Reddit’s discussion threads on the web enhances its discoverability through search engines, further supporting growth.
While short-term uncertainties may introduce volatility for advertising-based stocks, long-term investors in Meta Platforms and Reddit can expect value appreciation over the next decade.
Should You Invest $1,000 in Meta Platforms?
Before making any investments in Stock in Meta Platforms, consider the following:
The Motley Fool Stock Advisor analyst team recently curated a list of the 10 best stocks for investors. Notably, Meta Platforms did not make this list, indicating alternatives that may yield significant returns in future years.
Historically, stocks like Netflix from December 17, 2004, saw a $1,000 investment grow into $617,181! Similarly, if you had invested $1,000 in Nvidia on April 15, 2005, it would have turned into $719,371!
Currently, Stock Advisor boasts an average return of 909%, significantly exceeding the S&P 500’s 163%.
*Stock Advisor returns as of May 5, 2025
Randi Zuckerberg, a former director at Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board. John Ballard does not hold positions in any of the mentioned stocks. The Motley Fool recommends Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
