Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term

The technology sector has been a powerhouse in the market, and with the recent market sell-off, now is the perfect time to pick up some high-quality tech stocks at a discount. The pandemic accelerated digitalization, creating a surge in demand for cloud solutions, cybersecurity, and e-commerce. These trends are here to stay, making tech stocks a solid bet for long-term investors. Let's dive into three tech stocks that you can buy on this correction and hold for the next decade.



1. MercadoLibre (MELI)

MercadoLibre is a leading e-commerce and payments platform operating in Latin America. The company has shown impressive growth in both revenue and profitability. From 2022 to 2024, revenue surged from $10.780 billion to $20.777 billion, while operating income jumped from $1.069 billion to $2.631 billion. Net income more than quadrupled from $482 million to $1,911 million. Free cash flow also more than doubled from $2.5 billion to $7.1 billion, providing ample resources for reinvestment and expansion.

The company's user base is growing rapidly, with unique active buyers increasing by 17.6% year over year to 100 million. The number of items sold leapt 27% to 1.8 billion, and gross merchandise value (GMV) increased by 15% to $51.5 billion. The total payment value passing through the platform shot up 34% to $196.7 billion, indicating robust transaction activity.

MercadoLibre is not sitting still; it continues to invest in user experience to acquire more customers. With a team of more than 18,000 engineers, the company can quickly respond to market opportunities and stay ahead of its competition. Innovation will continue to be the company's focus this year as it comes up with new ways to engage its customers and keep them loyal. Another focus will be to build relationships with brands and agencies, and get more advertisers on board to build up its advertising platform, which is still in its infancy now. MercadoLibre has committed to investing $3.4 billion in Mexico this year as the country is now its second-largest market in Latin America. This number is a 34% jump over the amount that was invested last year and will be geared toward its technology products and financial services. With the low level of e-commerce penetration in many parts of the continent, MercadoLibre can enjoy a long runway for further growth in the years ahead.

2. Okta (OKTA)

Okta helps organizations manage their employees' identity and access privileges, providing cloud software to manage and secure user authentication. The company saw its revenue increase from $1.858 billion in 2023 to $2.610 billion in 2025, reflecting a CAGR of approximately 18% over the two-year period. Gross margin improved from 70.6% in 2023 to 76.3% in 2025, indicating better cost management and pricing power. Free cash flow soared more than 11-fold from $65 million in 2023 to $730 million in 2025, providing financial flexibility for growth initiatives.

The total customer count increased from 17,600 in fiscal 2023 to 19,650 by fiscal 2025, with a significant increase in customers spending more than $100,000 in annual contract value, from 3,930 to 4,800. The company's dollar-based net retention rate stayed strong at 107% for the latest quarter, indicating high customer satisfaction and retention. Remaining performance obligations, a measure of future subscription revenue, climbed 25% year over year to $4.2 billion for fiscal 2025, signaling a healthy pipeline of recurring revenue.

Okta's success is just the beginning, as the company has a massive TAM of $80 billion that it can tap into. There are multiple growth opportunities for Okta as it continues to innovate its platform and boost its network. The company will utilize its "land and expand" strategy to target existing customers with more use cases, thereby increasing the spend per customer to improve its annual contract value. Okta is also eyeing international expansion as another growth catalyst as many organizations require its identity management and user authentication services.

3. Fastly (FSLY)

Fastly operates an edge cloud platform that allows developers to run and deliver websites quickly, expediently, and securely. The company also provides load-balancing services and offers cloud security services to protect against threats and denial-of-service attacks. Fastly's edge cloud platform positions the company well in the growing market for edge computing and cloud services.

The company's revenue and gross profit have shown strong growth, with a significant increase in free cash flow. Fastly's focus on innovation and security makes it a compelling investment opportunity in the tech sector.

In conclusion, MercadoLibre, Okta, and Fastly are three tech stocks that offer strong growth potential and are well-positioned to benefit from the ongoing digitalization trend. With the recent market sell-off, now is an excellent time to pick up these high-quality tech stocks at a discount and hold them for the long term.