2 Tech Stocks With More Potential Than Any Cryptocurrency

7 hours ago 3

Cryptocurrencies can be exciting investments, but they're also extremely volatile. It's not uncommon for them to lose half their value or more during bear markets.

If you're looking for high-growth opportunities that aren't quite so risky, the tech sector is where you'll find them. Over the last 10 years, the tech-heavy Nasdaq-100 has gained 428%, compared to 183% for the S&P 500. Here are two tech stocks that could outperform the stock market and the crypto market over the next decade.

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Image source: Getty Images.

1. Reddit

Social media platform Reddit (RDDT 4.89%) has been around since 2005, but it went public much more recently on March 21, 2024. Anyone who bought shares at its initial public offering (IPO) price is very happy, as it has gone up 309% since then.

Reddit is a platform with over 100,000 communities, called subreddits. Each subreddit is dedicated to a specific topic. Some of the largest communities are r/funny, r/worldnews, r/movies, and r/books, each of which currently have over 25 million members. Reddit is free to use, and unlike on other social media sites, you can remain anonymous.

The massive number of communities on Reddit does a great job of attracting visitors and building engagement. Reddit's one of the top 10 most visited websites in the world, and in the first quarter of 2025, it averaged 108.1 million daily active users. That was a 31% year-over-year increase. Revenue growth was even better, up 61% to $392.4 million, with over 90% of revenue ($358.6 million) coming from advertising. Reddit keeps most of that money, too, as its gross margin is 90.5%.

But how is Reddit going to keep growing? It's prioritizing international expansion by building new communities in target geographies, with recent examples being France, Spain, and Brazil. It has also invested in machine translation to help international users discover and join communities. The company's international playbook is working well so far. In the first quarter of 2021, it had 27.5 million daily active users in the U.S. and 27.3 million in the rest of the world. This year, that flipped to 50.1 million in the U.S. and 58 million internationally.

Artificial intelligence (AI) could also be a growth catalyst. Reddit launched an AI-powered conversational search tool, Reddit Answers, at the end of last year. It launched two AI ad tools earlier this month, and it has a partnership with ChatGPT founder OpenAI, which is also a Reddit advertising partner.

Reddit stock is volatile, and like any company that relies heavily on advertising, it could suffer during an economic downturn. But it won't be as volatile as most cryptocurrencies, and with how popular it is, Reddit should be a long-term winner.

2. Netflix

Netflix (NFLX 2.05%) is another company that has plenty of satisfied investors. Over the last five years, it's up 171%, and that period includes a 2022 stretch when Netflix stock was battered due to slowing subscriber growth.

Those concerns are now firmly in the rearview mirror. Netflix has over 300 million subscribers, more than any other streaming service by a wide margin (second-place Amazon Prime is estimated to have 200 million, and Disney's Disney+ has 126 million). The addition of an ad-supported membership tier has been an extremely successful move. In May, Netflix reported that it had 94 million monthly active users in its ad-supported tier globally, up from 70 million in November 2024. This tier is especially popular with younger demographics, reaching more 18- to 34-year-olds than any U.S. broadcast or cable network.

Through its ad-supported tier, Netflix has grown its subscriber revenue and its ad revenue, two factors that contributed to a successful first quarter of the year. Revenue increased 13% year over year to $10.5 billion, and operating income was up 27% to $3.3 billion.

Streaming keeps getting more popular. It accounted for a record 44.8% of TV usage last month, according to Nielsen, more than broadcast and cable TV combined. Netflix accounted for 7.5% of TV usage, making it the second-most-watched streaming service behind YouTube, which isn't in quite the same niche.

Netflix is already one of the largest companies in the world with a market cap of $524 billion, but management is hoping to reach $1 trillion by 2030. That wouldn't be surprising. It's the top streamer, it consistently releases hit content, and it's even able to get mileage out of other companies' old shows through what's known as the "Netflix effect." There's still more growth potential than a cryptocurrency here -- plus much more financial security.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Netflix, and Walt Disney. The Motley Fool has a disclosure policy.

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