Stocks are a great way to expand portfolios and enhance long-term returns. With the U.S. Federal Reserve recently raising the benchmark interest rate by 25 basis points, the stock market took a dip, bringing fears of slower growth and a possible recession. But even in times of uncertainty, investors can benefit from the opportunities the stock market presents. Two stocks to consider for long-term growth are cloud-based data-warehousing company Snowflake and digital information services pioneer Alphabet.
Snowflake, a cloud-data platform provider, offers customers data storage and analytics services to break data silos and create a single, unified view to share with partners. With a projected 118 zettabytes of data estimated to be generated and consumed by 2026, the demand for data-warehousing services has increased dramatically, making Snowflake a prime player in the industry. The company reported a 69% year-over-year increase in revenues to $2.06 billion, and further expects its target addressable market (TAM) to be worth $248 billion by 2026. Snowflake’s platform has a number of catalysts to recommend it, including the company’s seamless compatibility with any cloud provider like Amazon’s AWS and Microsoft’s Azure, a usage-based pricing model, and a data marketplace.
Alphabet is another tech giant to consider for the long term. The search engine behemoth holds an impressive 83.84% of the global search-engine market share, and its Google Cloud segment accounted for an 11% share of the $217 billion cloud-infrastructure services market at the end of September 2022. Fears of Microsoft’s ChatGPT-powered Bing engine overthrowing Google’s throne are unfounded, considering the additional challenges of computational costs and monetization needed to make the new Bing a viable alternative. The segment reported a 37% year-over-year jump in revenues to $26.3 billion despite the slowdown in ad spending, demonstrating the company’s resilience.
Snowflake and Alphabet are two well-established, high-performing giants in their respective industries. Both of these supercharged stocks have the potential to benefit from the upcoming bull rally, making them smart buys for long-term gains.
