10 Best Stocks to Invest in for the Next 10 Years

2. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 262

Morningstar has given Meta Platforms, Inc. (NASDAQ:META) a wide economic moat rating because of its intangible assets and the potent network effect around the family of apps. As per the firm, the FoA’s strong competitive advantages are expected to enable the company to garner returns over its cost of capital over the next 2 decades. Notably, Meta Platforms, Inc. (NASDAQ:META)’s FoA segment consists of revenue from its social media applications such as Facebook, Instagram, WhatsApp, and Messenger. Morningstar believes that the company has been carefully using its investments in AI to improve its content recommendation and ad-monetization models, with its strong ad sales supporting the argument.

Meta Platforms, Inc. (NASDAQ:META)’s significant investments in AI are expected to help it achieve significant revenue growth throughout its platforms for at least the next decade. The company expects its full year 2025 capital expenses of between $60 billion – $65 billion and its capex growth in 2025 is expected to be driven by higher investment to support both its generative AI efforts and core business. Meta Platforms, Inc. (NASDAQ:META)’s investments are expected to cement its leadership position in digital advertising, social media, and metaverse.

Rowan Street Capital, an investment management company, released its Q4 2024 investor letter. Here is what the firm said:

“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.

For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.

Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)