2 Growth Stocks to Hold for the Next Decade

When looking for stocks to hold for the next decade, you want market leaders with strong growth opportunities ahead that trade at reasonable valuations.

Let's look at two growth stocks to buy and hold for the next decade.

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1. Amazon

Amazon (NASDAQ: AMZN) is the market share leader in both e-commerce and cloud computing. The company became the dominant player in e-commerce by aggressively building out its logistics network to become the largest in the world.

Today, the company is leveraging robotics and artificial intelligence (AI) to help further speed up delivery times and make its retail operations more efficient. This is leading to tremendous operating leverage, which could be seen last quarter as its North American operating income jumped 24% on a 10% increase in revenue.

At the same time, the company is seeing tremendous growth at its cloud computing unit, Amazon Web Services (AWS). Amazon created the entire infrastructure-as-a-service industry, and AWS is now its largest segment by profitability. It's also its fastest-growing, with revenue accelerating last quarter to 24% growth, its highest in more than three years.

The company continues to see huge growth for compute and AI services and, as such, has ramped up its capital expenditures (capex) to a whopping $200 billion this year to capture this opportunity. This should help AWS continue to see strong, accelerating revenue growth in the coming years.

At the same time, Amazon's stock is attractively valued, trading at a forward price-to-earnings ratio of below 27 times 2026 analyst estimates. That's a stark contrast to brick-and-mortar peers Walmart and Costco, which trade at forward P/Es above 40.

2. Meta Platforms

Another top growth stock to buy and hold for the long term is Meta Platforms (NASDAQ: META). The company has been one of the best at applying AI to its business to drive growth. Meanwhile, the stock is cheap, trading at a forward P/E of just 21 times.

Last quarter, Meta accelerated its revenue growth to 24%, while projecting its Q1 revenue growth would further accelerate to between 26% and 34%.

AI is powering Meta's growth, as it has used the technology to improve its recommendation engine to feed users more of the content they are interested in, leading them to spend more time on its sites. This is resulting in more ad impressions, which grew by 18% year over year last quarter. If you've ever found yourself going down the rabbit hole of one of Meta's apps, that's AI at work.

At the same time, Meta has also introduced AI-powered tools to help advertisers easily create better campaigns and to improve ad targeting and conversions. This is leading to better pricing. Meta is also just starting to gradually serve ads on its popular WhatsApp messaging platform, as well as its newest site, Threads, which should help drive growth in the coming years.

Geoffrey Seiler has positions in Amazon and Meta Platforms. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, Meta Platforms, and Walmart. The Motley Fool has a disclosure policy.