Got $3,000? 2 Tech Stocks to Buy and Hold for the Long Term

Growth investors have had trouble finding deals while tech companies have surged in the previous year. The Nasdaq Composite Index, up 10% in 2024 after surging last year, has several popular stocks.  

Longer time frames reduce the danger of overpaying for stocks in this scenario. With a decade-long investment horizon, you can ignore short-term volatility and market returns. With that long-term view, let's look at two tech stocks that, while expensive, could enhance your portfolio results.  

1. Garmin If you're passing on Apple (NASDAQ: AAPL) stock due to poor growth, consider Garmin (NYSE: GRMN). The electronic device specialist increased revenue 13% last quarter, compared to Apple's 2%. Fitness watches and GPS-enabled smartwatches from Garmin were popular. Press release: "We are entering 2024 with strong momentum," CEO Cliff Pemble stated.  

It's true that Garmin sells more hardware, which is less profitable than software. That's why its operational profit margin is 21%, compared to Apple's 31%.  

Garmin still generates strong profitability and cash flow. Last year, it generated $1.2 billion in free cash flow, approximately 25% of revenues. It's also cheap despite shares rising in the past year. Garmin trades at 5.5 times sales, compared to Apple's 6.9 times.  

2. Meta-platforms Meta Platforms (NASDAQ: META) stock likely fluctuate around its April 24 earnings report, but investors may buy this great company now. Meta's basic engagement numbers are strong before that announcement. Through late 2023, Facebook reported 3.2 billion daily users. Instagram and Facebook are the foundation of its family of apps, which 80% of monthly users use daily.  

Meta now monetizes that usage better. Due to more feed adverts, average revenue per user crossed $10 last quarter. In the next earnings report, Meta should enhance average advertising rates to boost earnings growth. Its momentum is high now. Operating income rose 62% to $46 billion, or 35% of revenues, last year.  

Meta's heavy investment in data centers, AI capability, and virtual reality technology may hurt its performance next year. However, CEO Mark Zuckerberg and his team will emphasize the spectacular returns this spending might generate over the next decade or longer. That's the best strategy to weather Meta's likely volatility after its enormous run over the previous year, so investors should focus on this company long-term.  

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