The Ultimate Growth Stock to Buy With $1,000 Right Now

The great Warren Buffett might have popularized value investing. But a lot of investors out there want to own businesses that are increasing revenue at a solid clip. The hope is that this type of performance can lead to strong share-price gains over time.

If this sounds like the investment mentality you adopt, continue reading. Here's the ultimate growth stock to buy with $1,000 right now.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Betting on tech trends

With a market cap of $2.4 trillion and 2024 revenue of $638 billion, you might be wondering how much growth Amazon (NASDAQ: AMZN) has left in the tank. I believe it's still easy to be optimistic, given that this company is positioned to benefit from some major ongoing tech trends.

Investors are definitely familiar with Amazon Web Services (AWS), the world's leading cloud computing platform. In 2024, AWS reported 19% revenue growth, more than the overall company. It remains a critical profit driver, posting an operating margin of 37%.

With AWS, Amazon has a platform it can continue aggressively investing in, particularly when launching new artificial intelligence (AI) tools and features. Management forecasted about $100 billion in capital investments in 2025.

"This primarily relates to AWS, including to support demand for our AI services," CFO Brian T. Olsavsky said on the Q4 2024 earnings call when talking about the huge cash outlays.

Online shopping remains key to the Amazon machine. The company deserves credit for bringing e-commerce to the masses. Today, almost 40% of all online spending in the U.S. happens on Amazon, well ahead of second-place Walmart. As e-commerce continues to steadily take share from brick-and-mortar retail, Amazon is in an enviable position to gain.

It might come as a shock to learn that Amazon has another budding revenue generator. In recent years, the business has rapidly grown its digital ad sales, which totaled $56.2 billion in 2024. The online marketplace's popularity and its engagement on Prime Video provide valuable channels to show ads.

Amazon's digital ad market share is behind only Alphabet and Meta Platforms. Seeing how profitable these two dominant tech firms are, Amazon likely has lots of earnings power within this segment as we look toward the future.

According to Wall Street consensus analyst estimates, Amazon's revenue is slated to increase at a compound annual rate of 10.3% over the next three years. That's a slower pace than when the company was smaller. However, the growth is durable, given Amazon's dominance and the expansion potential of the industries it operates in.

Not a pricey valuation

Just in the last two years, shares of Amazon have catapulted 124% higher. Cost-cutting efforts have helped drive improved profitability, with operating income soaring fivefold between 2022 and 2024. I'm sure this had a major impact on boosting investor sentiment.

Consensus analyst estimates predict that operating income will rise at an annualized pace of 21.4% between 2024 and 2027. This outlook is extremely encouraging.

But it's important that investors understand the valuation they are being asked to pay. As of this writing, the stock trades at a forward price-to-earnings ratio of 36.9. In my opinion, this is a compelling entry point, even after the shares climbed rapidly in the past couple of years.

Investors have always known Amazon to be able to grow its sales base with ease. However, the business is now exhibiting financial discipline that is directly benefiting the bottom line. Should earnings continue rising at a similar trajectory, investors are in a good position to generate strong returns.

Should you invest $1,000 in Amazon right now?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $795,728!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

Learn more »

*Stock Advisor returns as of February 7, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Walmart. The Motley Fool has a disclosure policy.