If you aim to grow your wealth, there is no better method than buying solid growth stocks and holding them over the long term. As these companies grow their revenue, profits, and free cash flows, investors will also bid up their share prices, providing their shareholders with capital gains. The key is to find businesses with strong growth track records that possess catalysts that can propel them to the next level.
Here are three attractive growth stocks that you can consider buying and holding for the long haul.
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The Trade Desk
The Trade Desk (TTD 3.55%) operates a cloud platform for brands and advertising agencies to manage and optimize their digital advertising campaigns. Demand for the company's services has risen steadily over the years, allowing it to post healthy increases in revenue, net income, and free cash flow.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue (in billions) | $1.58 | $1.95 | $2.45 |
| Operating income (in millions) | $114 | $200 | $427 |
| Net income (in millions) | $53 | $179 | $393 |
| Free cash flow (in millions) | $457 | $543 | $634 |
Data Source: The Trade Desk.
This strong growth momentum continued in the first quarter of 2025. The Trade Desk's revenue jumped 25% year over year to $616 million while operating income soared 90% to $54.5 million. Net income shot up 60% to $50.7 million, and free cash flow amounted to $229.7 million, 30% higher than the previous corresponding period.
There could be more to come for The Trade Desk as management has identified several growth drivers. The first is connected TV, where the company reaches more than 90 million households owning over 120 million devices. The Trade Desk's platform helps advertisers to measure and analyze the impact of their campaigns to form better future strategies. Another potential driver is international expansion: Two-thirds of global advertising spending occurs outside of the U.S.
NASDAQ: TTD
Key Data Points
The Trade Desk is also improving its service offerings to capture and retain more customers. Following its acquisition in Q1 of Sincera, a leading digital advertising company, The Trade Desk launched OpenSincera to deliver greater visibility into the health and performance of the digital advertising supply chain. In addition, the company launched Deal Desk to enable advertisers to manage their one-on-one deals and commitments with publishers. These moves should stand the company in good stead as it seeks to capture a larger slice of the $935 billion global advertising market.
Grab Holdings
Singapore-based Grab Holdings (GRAB 3.09%) offers users in eight Southeast Asian nations a super-app that allows them to hail rides, order food, and conduct financial transactions. The business has invested significant sums to attract users and scale up over the years, with revenue nearly doubling from 2022 to 2024. The company's gross margin has also increased significantly, in line with positive operating leverage. Last year marked its first full year of positive free cash flow.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue (in billions) | $1.43 | $2.36 | $2.80 |
| Gross profit (in millions) | $77 | $860 | $1,170 |
| Gross profit margin | 5.4% | 36.5% | 42% |
| Free cash flow (in millions) | ($872) | ($6) | $739 |
Data source: Grab Holdings.
Grab's financial strength continued in the first quarter of 2025 as its revenue climbed 18.4% year over year to $773 million. The super-app managed to eke out a small net profit of $10 million for the quarter, a notable improvement from the prior-year period's loss of $115 million. It was encouraging to see the business continue to churn out positive free cash flow of $47 million for the quarter. Management expects to log a 19% to 22% year-over-year increase in revenue for 2025.
NASDAQ: GRAB
Key Data Points
Several months ago, Grab unveiled new AI agent solutions to help both merchants and ride-share drivers gain actionable insights and help them with day-to-day tasks. These agents serve as merchants' go-to business advisors and provide AI-powered solutions to help drivers be more efficient and productive. Together, these tools can help Grab's delivery partners and drivers improve their performance and generate higher revenue for the business.
The total addressable market for Grab's mobility and delivery services is around $375 billion, of which Grab has captured just a 4%-plus share. With the market in Southeast Asia poised to continue growing, the company should be able to boost its revenues and net income significantly.
Coupang
Coupang (CPNG 5.11%) is the leading e-commerce player in South Korea, and provides a range of other services, including video streaming and fintech tools. The company's revenue has been rising for years, and it broke even in 2023, when it also turned free-cash-flow positive. However, investors should note that in 2023, Coupang booked a tax credit that inflated its net income.
In 2024, it sustained its profitability and continued to grow its top line.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue (in billions) | $20.6 | $24.4 | $30.3 |
| Operating income (in millions) | ($112) | $473 | $436 |
| Net income (in millions) | ($92) | $1,360 | $154 |
| Free cash flow (in millions) | ($824) | $1,760 | $1,010 |
Data source: Coupang.
The first quarter of 2025 saw the business making healthy strides in growing its top line and free cash flow. Net revenue grew 11% year over year to $7.9 billion and it churned out a net income of $107 million, significantly higher than the $5 million in the prior year. Free cash flow also stayed healthy, rising 8% year over year to $116 million. The number of active customers on Coupang's product commerce platform rose 9% to 23.4 million.
Coupang has plans to expand the reach of its Rocket Delivery service, which provides same-day and next-day delivery options. CEO Bom Kim says this service creates a virtuous cycle: As customers reward the company for its convenience and speed with higher spending, that helps attract more brands to its platform.
NYSE: CPNG
Key Data Points
He also sees significant potential for the company to grow its footprint in Taiwan, and is expanding the platform's product selection while sealing agreements with suppliers such as Coca-Cola and Procter & Gamble along with local brands.
After it acquired Farfetch, a British luxury fashion platform, Coupang is now pushing out a greater assortment of products to capture more customers while streamlining operations to achieve greater efficiency. Investors can expect these initiatives to yield positive results and pave the way for further growth for Coupang.
