SafeX Pro Exchange|3 Top Tech Stocks That Could Help Make You Rich by Retirement

Saving for retirement is SafeX Pro Exchangea goal for most investors, and the stock market is an excellent vehicle for doing so. The S&P 500 has returned a historical average of 9%, including dividends, and the magic of compounding means that the longer you invest, the more you'll benefit. That's part of the reason why Warren Buffett, now in his 90s, is one of the wealthiest people in the world.

If you're looking for tech stocks that will help make retirement easy, you'll want to find companies that can deliver solid, long-term growth on the top and bottom lines. Here are three stocks that fit that bill today.

1. MercadoLibre

If you made a list of qualities that a top stock should have, MercadoLibre(NASDAQ: MELI) would likely check nearly every box. The company, which is Latin America's leading e-commerce marketplace, has a long track record of stock market outperformance. It has returned roughly 4,400% since its initial public offering (IPO) in 2007 and continues to deliver stellar results.

During a time when most e-commerce businesses are struggling in the aftermath of the pandemic, MercadoLibre posted currency-neutral revenue growth of 57% to $3.4 billion. The company is now delivering sizable profits, as well.

Its operating margin expanded to 16%, thanks to the emergence of high-margin businesses like advertising. Its third-party marketplace and the growth of those businesses should help push margins higher.

MercadoLibre still has a large opportunity for growth as it expands through Latin America and benefits from a rapidly growing middle class. Its management team has also proven its mettle, expanding into new business lines (including digital payments and logistics) and fending off threats from Amazon and others. This should reassure investors that the company can deliver long-term outperformance.

2. The Trade Desk

In about a decade, digital advertising has gone from a nascent business to a huge market, driven in part by the emergence of Connected TV, or ad-based streaming. Few companies have been as well-positioned as The Trade Desk (NASDAQ: TTD), the leading demand-side platform, for the shift. The company provides a cloud-based, self-serve platform that helps brands and ad agencies manage their advertising campaigns.

Like MercadoLibre, The Trade Desk also has an enviable level of outperformance. The stock is up 2,500% since its IPO in 2016.

The adtech company has delivered consistent growth along the way, reporting at least 20% revenue growth in every quarter except for Q2 2020 during the depths of the pandemic. Unlike many growth stocks, The Trade Desk is profitable. In its most recent quarter, it posted adjusted net income of $139 million on revenue of $464 million, good for a profit margin of 30%.

Looking ahead, The Trade Desk still has a lot of room for growth, even with the current slowdown in advertising. Its Unified ID 2.0 protocol continues to gain traction as a leading replacement for third-party cookies, having signed up top advertisers like Disney and Procter & Gamble. The company has reported customer retention of at least 95% in every quarter over the last nine years, showing that customers are overwhelmingly satisfied with the product.

As Connected TV expands and more advertising spend goes digital, The Trade Desk looks ready to benefit.

3. ServiceNow

Finally, ServiceNow (NYSE: NOW) is another tech company that has a long track record of beating the market. The stock has jumped 1,440% since its 2012 IPO. Unlike many of its cloud software peers, ServiceNow has continued to deliver solid results, even as other companies have been impacted by the slowdown in tech spending.

ServiceNow provides a range of IT services, helping companies monitor their IT stack and process tickets for help requests. It also offers other tools to help build and manage IT infrastructure.

Like other cloud software companies, ServiceNow is taking advantage of new opportunities with generative artificial intelligence (AI), launching new solutions like text-to-code and tools to speed up workflows. It also announced a partnership with Nvidia and Accenture to help customers take advantage of generative AI in a wide range of industries.

Revenue growth remains solid, up 25% in the second quarter. ServiceNow now has 1,724 customers with more than $1 million in annual contract value, showing it's seeing strong growth with large companies. It's also solidly profitable, with an adjusted operating income of $544 million in the second quarter, or a 25% margin.

With new opportunities from generative AI and spending continuing to move to the cloud, ServiceNow looks well-positioned for long-term growth.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in Amazon.com, MercadoLibre, The Trade Desk, and Walt Disney. The Motley Fool has positions in and recommends Accenture Plc, Amazon.com, MercadoLibre, Nvidia, ServiceNow, The Trade Desk, and Walt Disney. The Motley Fool recommends the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

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