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Bull Market Buys: 2 Nasdaq Stocks to Own for the Long Run

Bull Market Buys: 2 Nasdaq Stocks to Own for the Long Run

Known as the cradle of leading technology stocks, the Nasdaq Composite is up a phenomenal 263% over the past decade. Even though it was a period of low inflation and easy money policies from the Federal Reserve, things may not be the same in the future.

When it comes to stocks, even if a rising tide has lifted all boats in the past, it might be difficult to maintain the same momentum. What is more important would be to choose real companies whose prospects are amazing and which are least perturbed by changing macroeconomic conditions. I have my eye on two stocks at the forefront of their respective sectors that could deliver even higher returns in the years to come.

If you’re looking to build productive long-term portfolios, let’s see why Global Coinbase (NASDAQ:COIN) And You’re here (NASDAQ:TSLA) are part of the upper echelons of Nasdaq companies.

Bull Market Buys: 2 Nasdaq Stocks to Own for the Long Run

Image source: Getty Images.

The crypto champion

With cryptocurrencies estimated to grow at a compound annual rate of 30% over the next five years, Coinbase should be on the radar of any growing investor. Through its crypto-centric business model, Coinbase serves as a proxy for capitalizing on the booming crypto economy without having to navigate the complexities of purchasing individual cryptocurrencies.

Most importantly, Coinbase has a remarkable business model. This wasn’t always the case, especially when the crypto market collapsed in a historically ugly bear market, but a lot has changed since those times.

Before the bear market, Coinbase relied heavily on transaction fees, at one point accounting for more than 90% of its total revenue. However, when the crypto market deteriorated and the platform experienced a drop in activity, this proved to be a significant vulnerability, resulting in a net loss of over $1 billion.

Yet thanks to its recent efforts, only 53% of its revenue today comes from transaction fees, while its innovative “Subscription and Services” suite of products has gained traction. This newer segment includes staking rewards, custodial fees, and revenue from its stablecoin partnerships, and as a result, Coinbase has emerged from the bear market more resilient than ever. With expenses cut by almost a third compared to last year, Coinbase’s revamped business model only allowed it to make $2 million in profits.

More than just a leader in electric vehicles

Like cryptocurrencies, electric vehicles (EVs) are expected to grow at an exponential rate in the coming years. Analysts estimate that two out of three cars sold worldwide will be electric vehicles by 2030. And Tesla may be best positioned to benefit from this market opportunity.

Becoming the world’s most valuable automaker, much of Tesla’s recent success can be traced to the perfection of the electric vehicle supply chain. With planned production of more than 1.8 million vehicles in 2023, Tesla’s manufacturing capabilities are virtually unmatched. Better yet, with more factories planned in various countries around the world, Tesla is in the driver’s seat to benefit from electric vehicle adoption.

However, electric vehicles may not be the most profitable long-term prospect for the company. With a cash reserve of $26 billion, Tesla is investing heavily in futuristic technologies, including artificial intelligence, autonomous driving and robotics. These innovations not only have the potential to transform society, but they also have the potential to become profitable sources of revenue.

Tesla’s promise of future success in the electric vehicle market clearly makes it an attractive stock to hold for the long term. But when you factor in the opportunities its other tech efforts could bring, Tesla could prove to be the most productive part of a portfolio for decades to come.

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RJ Fulton holds positions in Coinbase Global and Tesla. The Motley Fool holds positions and recommends Coinbase Global and Tesla. The Motley Fool has a disclosure policy.

Bull Market Buying: 2 Nasdaq Stocks to Hold for the Long Term was originally published by The Motley Fool

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