3 Breakout Growth Stocks You Can Buy and Hold for the Next Decade
Many growth stocks sputtered out this year as the Trump administration’s tariffs raised concerns about a potential recession and drove investors back toward more conservative investments. That caution is warranted, since unpredictable tariffs can easily disrupt global supply chains, drive up labor and component costs, and throttle the market’s demand for those tech products and services.
However, investors who can tune out that near-term noise might still find some good growth stocks to hold for the next decade. Here are three stocks that can break out of this rut and head a lot higher in the next 10 years: AppLovin (NASDAQ: APP), Datadog (NASDAQ: DDOG), and ServiceNow (NYSE: NOW).
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1. AppLovin
AppLovin publishes mobile games and provides its own app monetization tools. Most of its recent growth was driven by its advertising business, which it expanded through its acquisitions of the ad tech company MoPub and the connected TV advertising firm Wurl in 2022. It’s also locking in more customers with its AI-powered AXON ad discovery services, which help advertisers predict which ads will generate the highest returns. It’s in the process of divesting its slower-growth gaming segment as it tries to buy ByteDance’s TikTok — but it could still be outbid by some other aggressive suitors.
In 2024, AppLovin’s revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) — which smooths out its recent acquisitions — rose 43% and 81%, respectively. From 2024 to 2027, analysts expect its revenue and adjusted EBITDA to increase at a compound annual growth rate (CAGR) of 20% and 31%, respectively. With an enterprise value of $105 billion, it still looks reasonably valued at 28 times this year’s adjusted EBITDA.
AppLovin is a promising long-term play on the AI-driven mobile advertising market, and its bid for TikTok indicates it isn’t shying away from daring acquisitions. Its stock will remain volatile in this choppy market, but it has a shot at evolving into a much bigger digital advertising giant over the next decade.
2. Datadog
Datadog’s unified observability platform helps IT professionals monitor real-time data across a wide range of computing platforms and software. Instead of checking all of those systems individually — which can be an inefficient, time-consuming, and error-prone process — they can aggregate all of that data onto Datadog’s unified dashboards. They can also use its generative AI copilot, BitsAI, to streamline their tasks to resolve their IT issues more efficiently.
In 2024, Datadog’s revenue rose 26%, its number of customers that generated more than $100,000 in annual recurring revenue grew 13% to 3,610, and its net income nearly quadrupled.
From 2024 to 2027, analysts expect Datadog’s revenue and EPS to both increase at a CAGR of 20%. Its business is gradually maturing, but it has plenty of room to grow as more companies wisely break down the silos between their fragmented computing platforms. It also isn’t too exposed to the intensifying trade war because it doesn’t have a meaningful presence in China.
With an enterprise value of $33 billion, Datadog’s stock isn’t cheap at 10 times this year’s sales. But it could still be a great play on the growth of the observability tools and platforms market, which Market Research Future predicts will expand at a CAGR of 19.3% from 2025 to 2034.
3. ServiceNow
ServiceNow is a cloud-based company that helps large companies streamline their unstructured tasks into digital workflows. By organizing those workflows on its cloud-based platform, it helps companies eliminate redundant tasks, cut costs, and provide better support for their hybrid and remote workers. Its Now Assist AI platform further accelerates that process with integrated chatbots and automation tools.
ServiceNow’s platform can help business expand more efficiently, but it can also help them weather economic downturns. That flexibility makes it a reliable stock to hold in both bull and bear markets. It’s also well-insulated from the trade war because it doesn’t directly sell its services in China.
In 2024, ServiceNow’s revenue rose 22.5%, its number of customers with an annual contract value (ACV) exceeding $5 million increased 21%, and its adjusted EPS rose 29%. From 2024 to 2027, analysts expect its revenue and EPS to grow at a CAGR of 19% and 27%, respectively.
ServiceNow’s stock might seem pricey at 59 times its forward adjusted earnings, but I believe it deserves to trade at a premium because it’s better shielded from the macro headwinds than many of its peers. That makes it one of the best tech stocks to buy and hold for the next decade.
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AppLovin, Datadog, and ServiceNow. The Motley Fool has a disclosure policy.