2 Growth Stocks to Buy and Hold for a Decade

Equity markets are experiencing a healthy dose of volatility this year. Based on broader macroeconomic indicators (like rising inflation), things might not settle down anytime soon. Although many are avoiding equity markets as a result, long-term investors know that, whatever is going on, the secret to earning strong returns hasn't changed: Buy shares of top companies at reasonable prices, and hold onto them through thick and thin. In fact, there are plenty of attractive growth stocks with bright prospects to be had right now. Here are two of them: Meta Platforms (NASDAQ: META) and Dexcom (NASDAQ: DXCM).

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1. Meta Platforms

Investors are worried about Meta Platforms' runaway capex spending, which might squeeze profits and margins if it doesn't pay off, just like the company's metaverse spending was largely a flop. Also, during the company's first quarter, it posted a surprise quarter-over-quarter decline in daily active users, which was 3.56 billion for the period, down from 3.58 billion in the fourth quarter.

That's why Meta Platforms is not performing well this year. However, the tech leader has attractive opportunities that could allow it to deliver strong returns through the next 10 years. Let's consider three of them. First, Meta Platforms' core advertising business remains strong, partly thanks to its work in artificial intelligence (AI). AI-powered algorithms are increasing engagement across its websites and apps and boosting ad sales. This is ongoing work at Meta Platforms that could continue to yield results.

Second, Meta Platforms is diving into agentic AI. The company is working toward a future where it has AI assistants across its apps that help users -- whether individuals or businesses -- achieve their goals much more effectively. This could further boost Meta's engagement and make it much easier for companies on its platforms to interact with their clients and meet their needs.

Third, Meta Platforms is still ramping up its smart glasses business. The glasses themselves won't be significant profit drivers -- they will carry lower margins than Meta's ad business. However, the company could sell various subscriptions while still using the significant data it will have access to through these glasses to improve its advertising segment. So, AI glasses could be another meaningful opportunity for the company. If it can execute its strategy across this and other potential growth avenues, its spending will be more than justified. Regarding the company's recent sequential decline in daily users, Meta blamed internet issues in Iran and restrictions on WhatsApp in Russia.

My view is that these aren't problems that will plague Meta Platforms in the long run. The company's user growth should resume. And even at current levels, it has a larger user base than almost any other company on the planet, along with a strong competitive edge from the network effect. All these factors make Meta Platforms a stock worth buying on the dip and holding onto for a while.

2. Dexcom

Though Dexcom encountered some challenges -- including product recalls and slower-than-expected top-line growth -- in recent years, the company may have turned things around. The stock recently jumped significantly because Elliott Investment Management, a famous activist investment firm, took a significant stake in the company and will help add two new members to its board of directors.

Some investors view this as a strong endorsement of Dexcom's prospects. That aside, Dexcom continues to post solid financial results. In the first quarter, the company's revenue grew by a healthy 15% year over year to $1.19 billion. Dexcom's adjusted earnings per share of $0.56 jumped by 75% compared to the year-ago period.

Dexcom remains a top player in the market for continuous glucose monitoring (CGM) devices that help diabetes patients track their blood sugar levels in real time throughout the day. The company still sees a massive addressable market in this space, especially given its relatively new launch in the U.S. -- the Stelo -- that sells over-the-counter and targets even those with prediabetes, thereby significantly boosting its opportunity. In the U.S., Dexcom estimates that more than nine million patients are eligible for CGM coverage but have yet to opt for it.

Meanwhile, the company is working on newer, better products while also expanding its reach by entering new regions. Dexcom expects 10% organic revenue growth per year through 2030, and it could perform well long after, given the opportunities ahead. The stock still looks attractive at current levels, even after the recent rally.

Prosper Junior Bakiny has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool recommends DexCom and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.