It’s been another great year for the stock market. As of this writing, the benchmark index, Standard & Poor’s 500It rose by about 18%.
However, if you know where to look, there are better opportunities to buy and hold for the long term. Let’s take a look at two tech stocks that are each up more than 50% year-to-date.
Spotify Techniques
Spotify Technologies (NYSE: SPOT) Leading existing Tech Stocks You Can Buy and Hold for the Next Decade. The company that runs the world’s largest marketangry The podcast platform continues to impress.
since Early 2023Spotify shares surge 339%making it one of the best performing stocks during that period. What’s the secret to its stock market success? Spotify has successfully combined revenue growth with cost reduction. When done right, it’s a powerful combination.
Spotify’s trailing 12-month revenue rose to $15.7 billion, up from $13.6 billion a year ago. Similarly, trailing 12-month revenue rose to $15.7 billion, up from $13.6 billion a year ago. net income He has more To $500 million compared to a loss of about $800 million the previous year.
In terms of revenue, the company relies on its premium users to generate about 90% of its sales. These users pay a subscription fee to access ad-free music, podcasts, and audiobooks. Meanwhile, the company derives about 10% of its revenue. the total Revenue from ad-based listening.
As for its expenses, Spotify has embarked on a series of cost-cutting measures over the past few years, including cutting staff levels, slashing marketing budgets, and canceling some content projects.
In turn, the company is operating at full capacity. Spotify certainly operates in a competitive space, with apple, Amazonand alphabet They all offer king A form of podcasting.
However, Spotify has proven itself. With over 600 million listeners and nearly 250 million subscribers, Spotify has cemented its place in the audio streaming market. Investors looking for a strong growth stock should consider Spotify.
Meta platforms
Next is Meta Platforms (NASDAQ: META)Facebook and Instagram player.
It’s true that I’ve been concerned about Meta, and especially the tens of billions of dollars the company has chosen to spend on the Metaverse. But there’s one undeniable fact: Meta is generating cash at an almost unbelievable level. And it’s a company that can afford to take some pretty hefty risks. And I’m sure that’s one of the reasons Meta CEO Mark Zuckerberg felt comfortable pumping $46 billion into the company’s Reality Labs division. — money who yet He has Not generated Any return.
Anyway, let’s Look closely Meta cash flow. In the past 12 months, the company has achieved 50 billion dollars In free cash flow.
META’s Free Cash Flow Data by Way Charts
It’s an astonishing amount, and it puts Mita in a coma. $50 billion in free cash flowFor example, It is comparable to the total free cash flow of energy giants. ExxonMobile and Chevron — total.
It’s no wonder the company started paying its first-ever regular dividend this year. After all, finding the money to pay it isn’t a problem. And the new payout policy shows that Facebook has plenty of resources. surplus Available cash dividends, looking for a shareholder-friendly cash management policy.
Furthermore, as long as Meta Platforms remains disciplined in its spending, there will be plenty of cash flow. in the way. Analysts expect the company to record 20% sales growth this year, and another 13% in 2025. The growing revenue numbers should support more free cash flow and maybe Higher dividends at some point. All of this should make investors happy to own Meta platforms for the next decade.
Should you invest $1000 in Meta Platforms now?
Before you buy shares in Meta Platforms, keep this in mind:
the Motley Fool Stock Advisor The team of analysts has just identified what they believe to be Top 10 Stocks There are 10 stocks available for investors to buy right now… and Meta Platforms isn’t one of them. The 10 stocks that make it could deliver massive returns in the years to come.
Think about when Nvidia I made this list on April 15, 2005… If you invested $1,000 at the time of our recommendation, You will have $792,725.!*
Stock Advisor It provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. Stock Advisor The service has More than four times S&P 500 Index Return Since 2002*.
*Stock Advisor returns as of August 22, 2024
Susan Frey, CEO of Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former chief market development officer and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jake Lersh The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Chevron, Meta Platforms, and Spotify Technology. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Chevron, Meta Platforms, and Spotify Technology. Disclosure Policy.
2 Tech Stocks You Can Buy and Hold for the Next Decade Originally posted by The Motley Fool
Comments are closed, but trackbacks and pingbacks are open.