2 Mega-Cap Stocks to Own for Decades and 1 We Question

Megacap stocks are behemoths that set the tone for their industries, and their massive scale typically leads to wide moats. However, the downside is that most have already exploited their existing market opportunities and must invest heavily to expand further, a risky proposition.

These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you find high-quality companies that can grow their earnings no matter what. Keeping that in mind, here are two industry titans that still have big upside potential and one whose momentum may slow.

One Mega-Cap Stock to Sell:

Qualcomm (QCOM)

Market Cap: $253.8 billion

Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.

Why Are We Hesitant About QCOM?

1. Estimated sales decline of 8.8% for the next 12 months implies a challenging demand environment
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 7.2 percentage points

At $239 per share, Qualcomm trades at 23.5x forward P/E. Check out our free in-depth research report to learn more about why QCOM doesn’t pass our bar.

Two Mega-Cap Stocks to Buy:

Meta (META)

Market Cap: $1.52 trillion

Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.

Why Will META Outperform?

1. Customer spending is rising as the company has focused on monetization over the last two years, leading to 29.6% annual growth in its average revenue per user
2. Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 61.8%, and it turbocharged its profits by achieving some fixed cost leverage
3. Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Meta’s stock price of $600.17 implies a valuation ratio of 10.2x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

AppLovin (APP)

Market Cap: $203.5 billion

Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.

Why Should You Buy APP?

1. Impressive 30.4% annual revenue growth over the last two years indicates it’s winning market share
2. Software platform has product-market fit given the rapid recovery of its customer acquisition costs
3. Robust free cash flow margin of 71.9% gives it many options for capital deployment

AppLovin is trading at $600 per share, or 23.4x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.