2 Growth Stocks Worth Holding for the Next Decade

In recent years, growth stocks have attracted many investors looking for promising opportunities. The combination of low interest rates, positive investor sentiment, and a surge in technology advancements has pushed growth stocks to perform well in the market.

If you're a long-term investor seeking growth stocks that you can hold for the next decade, here are two excellent choices.

CrowdStrike

CrowdStrike Holdings (CRWD) has been a leading growth stock, but a significant outage in July 2024 raised concerns, causing some investors to rethink their positions. As of March 6, CrowdStrike’s shares dipped by 4% over the last three months, which included a notable 26% drop from its high on February 14.

Despite a cautious outlook for fiscal year 2026 announced in early March, abandoning CrowdStrike may be a hasty decision. For long-term growth investors, this stock holds several favorable attributes.

CrowdStrike is well-regarded for its effective cybersecurity solutions, consistently recognized among the best in the field. Its impressive financial performance, along with customer acquisition and retention rates, lends credence to its status.

In the fourth quarter of fiscal year (ending January 31), CrowdStrike secured over 20 deals exceeding $10 million and more than 350 deals worth over $1 million. Given the critical importance of cybersecurity, such metrics reflect substantial support from clients.

The company's dollar-based net retention rate stood at 112% in the fourth quarter, indicating that existing customers spent 12% more than the previous year. This growth is a crucial driver for revenue, as reflected by CrowdStrike surpassing $1 billion in subscription revenue for the first time in its history.

For identifying solid long-term investments, factors like large customer deals, strong retention rates, and extensive total addressable market (TAM) are essential. Management anticipates CrowdStrike’s TAM could grow to $250 billion by 2029 for its AI-native platform, increasing from an estimated $116 billion now. As cybersecurity's significance escalates, CrowdStrike is well-positioned for sustained growth.

Amazon

With a market capitalization exceeding $2 trillion, Amazon (AMZN) might not appear to be a typical growth stock; however, it exhibits many growth stock characteristics.

While Amazon gained fame through its thriving e-commerce operations, my optimism for the upcoming decade centers on its cloud computing division, Amazon Web Services (AWS).

AWS leads the market in cloud services and has emerged as a substantial source of income. In 2024, AWS revenue increased by 19% year-over-year, reaching $107 billion, surpassing the total revenue generated by Target over the past four quarters combined. Notably, AWS’s operating income rose to $40 billion from $24.6 billion.

Though AWS represented only about 17% of Amazon’s total revenue in 2024, it accounted for nearly 58% of the company’s operating income. E-commerce primarily fuels revenue, but AWS significantly bolsters profitability.

As artificial intelligence (AI) technology advances, major cloud platforms are poised for improvement. AWS has adopted a slightly different strategy to maintain its leading position in the market, focusing on creating foundational AI infrastructure that allows customers to develop their own AI tools. Examples include the Bedrock and SageMaker platforms, which facilitate building and deploying generative AI applications and machine learning models, respectively.

In 2024, Amazon's capital expenditures reached nearly $83 billion, with most investments aimed at supporting AWS's growth through data centers and AI capabilities. The company recognizes the role of e-commerce revenue in funding its initiatives, but AWS is crucial for its long-term growth. Plans are in place to allocate around $100 billion in 2025.

Amazon is a stock I am confident in holding for the long term, despite the inevitable market fluctuations.

Note: Stefon Walters has positions in CrowdStrike, while The Motley Fool has investments in and recommends Amazon, CrowdStrike, and Target.

stocks, growth, investment