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If we look at the stock market over the past decade, we’ll find that many of the best-performing stocks are those of generation companies. Recent developments have made generation stocks very hot and have raised their valuations, to the point that seven of the top ten valuable corporations globally belong to the generation sector.
Although the gains of many tech stocks have been impressive, it’s vital not to forget the price of patience when investing. The focus deserves to be on the long term.
While the last decade has been lucrative for many tech investors, the next decade may be just as promising. The following three corporations are the ones that investors deserve to consider to buy and hold for the next decade. There will definitely be some obstacles along the way. the way, but chances are you’ll look back and be glad you invested in those projects now.
Snowflake (SNOW 0. 03%) operates a cloud-based data platform that allows users to aggregate, analyze, and share data across platforms. Investors expected a lot from the company at the time of its initial public offering (IPO), but since then, it’s been a story of ups and downs.
In its fiscal first quarter of 2025 (which ended April 30), Snowflake generated a profit of $829 million, which beat the consensus estimate. However, the company failed to achieve the estimated profits and the stock continued with the decline that began in March.
Yes, Snowflake’s year-over-year profit expansion has slowed, however, its remaining functionality legal liability (the profit that can be expected under existing contracts) is up 46% from last year to $5 billion, and the control noted that after an era when some were hesitant to do so, and more and more consumers are starting to make longer-term commitments.
Snowflake indicated in its latest earnings call that it expects its margins to shrink over the next year as it spends a lot of cash on new graphics processing sets (GPUs) for its AI initiatives, but this turns out to be a mandatory infrastructure investment to achieve that goal. It requires “significant profit generation” in the coming years.
Like many other tech companies, Snowflake is betting big on AI and hopes to drive expansion and its offerings through emerging technology. Add to this the projected expansion of the Big Data sector and Snowflake’s long-term price proposition, and it becomes intriguing, especially since its valuation is now near the lowest point since its IPO.
CrowdStrike was one of the pioneers in AI-native cybersecurity solutions and has temporarily been a go-to vendor for many of the world’s leading corporations, totaling 62 Fortune 100 members. Although AI has gained widespread attention in recent years, CrowdStrike has been using it since the beginning for its security solutions, giving it a merit of knowledge over other cybersecurity companies that have joined the AI group.
The effectiveness of CrowdStrike’s platforms lies in the expansion and retention of its visitor base. Approximately 65% of its consumers use five or more modules (software designed for an express function), 44% use six or more, 28% use seven or more. and the number of transactions involving 8 or more modules increased by 95% year-over-year in the last quarter. This has also boosted CrowdStrike’s monetary results.
Cybersecurity is now a non-negotiable expense for many businesses around the world and that figure is expected to rise. With a price-to-sales ratio of around 23. 5, CrowdStrike trades at a premium to its peers, but for investors who have time on their side, its expansion rate and expansion opportunities make it a justifiable premium to pay.
Microsoft (MSFT 1. 46%) has been around for decades, being outside of the other two companies on this list, but even as the world’s most valuable public company, it still has plenty of room to grow.
One of the main reasons to hold onto Microsoft’s inventory over the next decade is the way the company is strongly connected to the global business world.
Think of all the products introduced through Microsoft that many corporations rely on in their day-to-day operations: Office products (Excel, Word, Outlook, Teams, etc. ), Azure, Windows, and dozens of other business solutions.
Its position as a leading provider of services for the global enterprise network protects Microsoft from the effects of economic downturns compared to many of its peers and provides it with long-term stability. When economic situations are ideal, it’s much less difficult to keep up. Canceling your cloud service, avoiding the use of critical productivity tools, or dispensing with IT infrastructure support.
Microsoft’s prominence in the global business ensures that it will remain a dominant player in technology for some time to come.
Stefon Walters holds positions at Microsoft. The Motley Fool holds positions and recommends CrowdStrike, Microsoft, and Snowflake. The Motley Fool has a disclosure policy.
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