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Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term | The Motley Fool

Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term | The Motley Fool

By Leo SunThe Motley Fool

It might seem like a risky time to buy high-growth tech stocks. The S&P 500 appears historically expensive at 31 times earnings, and unpredictable headwinds, such as tariffs, trade wars, and geopolitical conflicts, could trigger a market pullback next year. However, investors who plan to buy and hold their stocks for the next decade shouldn't fret too much over those near-term headwinds. If you can tune out that noise, these three resilient tech stocks could turn a modest $5,000 investment into a substantial amount of money: Oracle ( ORCL 2.35%), Reddit ( RDDT 2.38%), and Netflix ( NFLX 0.21%). Image source: Getty Images. The cloud play: Oracle Oracle, the world's leading provider of database software, was once considered a slow-growth tech stock. Yet over the past decade, it transformed its on-premise software into cloud-based services , expanded its ecosystem with more enterprise resource planning (ERP) tools, and upgraded its own Oracle Cloud Infrastructure (OCI) platform to capitalize on the growing demand for remote storage, computing, and artificial intelligence ( AI ) services. NYSE: ORCL Key Data Points Much of Oracle's recent growth has been driven by the expansion of the AI market. It's an underdog in the cloud infrastructure market compared to Amazon , Microsoft , and Alphabet 's Google, but it's attracting a lot of companies that don't want to tether themselves to those tech giants. It also leverages the strength of its database services -- which already collect, clean up, and analyze massive amounts of data -- to launch more AI tools across its cloud platform. From fiscal 2025 (which ended in May) to fiscal 2028, analysts expect Oracle's revenue and earnings per share ( EPS ) to grow at a CAGR of 30% and 26%, respectively. It might not appear cheap at 31 times next year's earnings , but its accelerating growth, exposure to the booming cloud and AI markets, and sticky ecosystem justify that higher valuation. The social media play: Reddit Reddit isn't a pure-play social media company like Meta Platforms . Instead, it allows its users to aggregate news stories and other topics across its discussion forums. It also became a top source for finding human-driven responses, and it shares that data with generative AI platforms such as OpenAI's ChatGPT and Google's Gemini. It also uses all of that data to craft the targeted ads, which generate most of its revenue. NYSE: RDDT Key Data Points At the end of the third quarter of 2025, Reddit hosted 116 million daily active unique (DAUq) visits and 50.2 million logged-in DAUq visitors. That's up from 101.7 million DAUq visitors and 46.1 million logged-in DAUq visitors at the end of 2024. That robust growth was driven by major events -- including elections, geopolitical conflicts, big movie releases, and meme stock trading. ChatGPT, Gemini, and other chatbots are also driving more traffic to Reddit's platform. It's also locking in more users with its paid Reddit Premium tier, which offers ad-free browsing and other perks. From 2024 to 2027, Wall...

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Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term | The Motley Fool | Read on Kindle | LibSpace