Title: Investing Wisely: Three Top Tech Stocks to Hang On To for the Long Haul
Title: Investing Wisely: Three Top Tech Stocks to Hang On To for the Long Haul
Embracing technology has become an integral part of our lives, opening up opportunities for connections and innovations. The digital revolution has led to widespread adoption of cloud computing, while cutting-edge artificial intelligence (AI) has expanded the uses of technology. Given the fundamental role of technology in our daily lives, investing in tech stocks could prove rewarding in the long run.
However, prudence is vital in selecting stocks. Preferably, companies should dominate their respective markets, exhibit a proven track record of revenue and free cash flow growth, and have sustainable catalysts to foster continuous growth. To help you make informed decisions, I have handpicked three promising technology stocks.
Zscaler
Known for its Zero Trust Exchange platform, Zscaler (ZS 0.55%) is a cybersecurity company. The shift towards cloud operations has boosted the demand for Zscaler's services, leading to a near-doubling of revenues from $1.1 billion (FY 2022) to $2.2 billion (FY 2024), accompanied by a significant increase in free cash flow.
In the first quarter of FY 2025, revenues climbed 26.4% year-over-year, and the company reported a 30% rise in bookings. Notably, FCF tripled compared to the prior quarter, reaching $291.9 million. Zscaler also boasts a rapidly growing clientele, with an 17% year-over-year surge in high revenue-earning clients.
Computational power and AI have been instrumental in bolstering Zscaler's cyber and data protection services, as well as promoting secure usage of public and private AI applications. In addition, AI tools are used to enhance threat prediction and detection, analyzing more than 500 billion transactions and 500 trillion signals daily.
Zscaler's management forecasts a $96 billion addressable market, though the untapped potential of incremental markets with millions of Internet of Things devices and users could double these figures.
Veeva Systems
As a vertically oriented software-as-a-service provider in the life sciences industry, Veeva Systems (VEEV 0.61%) boasts an impressive customer base, serving large pharmaceutical companies and biotechnology firms. In FY 2022, revenues totaled $1.85 billion, skyrocketing to $2.36 billion in FY 2024.
Net income flourished in this period as well, increasing from $427.4 million to $525.7 million. Free cash flow also saw an uptick, rising from $750.2 million in FY 2022 to $885.1 million in FY 2024.
The business continued to expand in the first nine months of FY 2025, with revenue soaring nearly 17% year-over-year to $2 billion, and net income growing 37.1% year-over-year to $518.5 million. The company also achieved positive free cash flow of $1 billion, outpacing the previous year's figure.
Veeva continually enhances its platform, recently launching two AI capabilities for its Vault CRM software. These innovations will allow customers to develop AI applications and boost productivity among customer representatives.
The life sciences market is estimated to be worth $2 trillion with a 6% compound annual growth rate. Veeva Systems' total addressable market stands at $20 billion, presenting an excellent growth opportunity for the company.
Roblox
Roblox is a platform that enables users to design and participate in virtual games, interacting with their creations and others in a virtual world. Revenues have risen steadily, surging from $1.9 billion in 2021 to $2.8 billion in 2023, demonstrating an impressive growth trajectory that includes a strong FCF of $124 million for 2023.
The third quarter of 2025 witnessed robust growth as well, with revenue jumping 29% year-over-year, bookings increasing 34%, and FCF more than tripling. Daily active users (DAUs) on Roblox's platform also grew, climbing 27% year-over-year, while hours engaged soared 29%.
Roblox is positioning itself for further growth by partnering with British advertising and PR agency WPP to welcome brands into its virtual world and develop immersive media standards. This collaboration also involves piloting a Roblox certification program for marketers to attract prominent clients such as Church & Dwight and Danone.
As the company continues to build engaging virtual worlds, growth prospects seem promising, with the potential of drawing more users through increasing DAUs and engagement time.
In the realm of finance and investing, the profitable growth of tech companies like Zscaler and Veeva Systems has caught the attention of investors. The demand for Zscaler's cybersecurity services, driven by the shift towards cloud operations, has led to a significant increase in the company's revenue and free cash flow. On the other hand, Veeva Systems, a software-as-a-service provider in the life sciences industry, has witnessed a surge in revenue and net income, thanks to its impressive customer base and continuous platform enhancements.
With the ever-growing digital economy, investing in technology stocks can be a smart move. Companies with a dominant market position, consistent revenue growth, and sustainable catalysts for future growth, such as Zscaler and Veeva Systems, can potentially yield significant returns in the long run.