The Ultimate Growth Stock to Buy With $1,000 Right Now
Key Takeaways
Plenty of great growth stocks are available to investors across all sectors, and many of them will end up being fantastic places to put your money over the long term. But...
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July 11, 2025
07:40 AM
The Motley Fool
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Plenty of great growth stocks are available to investors across all sectors, and many of them will end up being fantastic places to put your money over the long term
But if you have $1,000 to work with and can only buy one growth stock right now, there's a case to be made for Amazon (AMZN 1
The company is known for its dominance in e-commerce, but there's far more to Amazon's growth potential than just its online marketplace
Artificial intelligence and advertising are both huge opportunities for Amazon, and the company's superb cash stockpile puts it in a perfect position to adapt to an ever-changing environment
Here's why it's a top growth stock to buy now
Image source: Getty Images
It's tapping into the AI boom Amazon is a key player in the AI space, thanks to its early lead in cloud computing
Amazon Web Services (AWS) holds 30% of the cloud market, outpacing Microsoft's Azure with 21%, and as more companies look to the cloud for their artificial intelligence needs, Amazon should benefit
AWS generated more than $29 billion in sales in the most recent quarter and generated $11. 5 billion in operating income
That's a strong showing from this segment, and Amazon is ly to continue tapping further into cloud computing, with global AI cloud revenue estimated to reach $2 trillion by 2030
AWS is still one of Amazon's fastest-growing segments and one of its most fitable as well
With the AI race well underway, Amazon could see many more years of growth as it benefits from its leasing position in this market
Advertising sales are on a tear It's easy to skip over Amazon's advertising because, for years, it wasn't a huge part of the company's growth strategy
But things have changed over the past few years, and now advertising is Amazon's fastest-growing, with sales rising by 18% in the first quarter to $13
Amazon has a unique position in the advertising market not just because it owns the platforms it sells ads on, its Amazon Prime ing service and its e-commerce platform, but because sellers on its marketplace pay for ads
This means that Amazon makes money both from sellers placing ads on its e-commerce site and when people sell ducts on the site
This helps insulate Amazon from the ups and downs that other ad companies experience
EMarketer estimates that Amazon's growth in the U
Digital ad market will give the company a 17% market by next year
Amazon is in a strong financial position for more growth One thing you should always be on the lookout for in any growth stock is whether the company has enough money to seize new opportunities
This could be through acquisitions, launching a new duct, or re funds into what's already working
With Amazon, there's no doubt the company can handle all three -- and then some
Amazon the first quarter with $66 billion in cash and cash equivalents, which means the company is well-positioned to invest in its future, no matter what new trends emerge
Amazon hasn't been afraid to take big bets in the past -- including moving into healthcare, grocery stores, and ing -- so you can bet the company is on the lookout for the best way to deploy its cash
One bonus reason to buy Amazon stock right now In addition to all of the reasons above, buying Amazon stock right now looks a smart choice because the company's s are well-priced
Amazon stock has a price-to-earnings ratio of 34, far below its P/E high of 300, which its s reached a couple of years ago
With this growth stock trading at one of its lowest P/E multiples in years, now looks a fantastic time to put $1,000 toward Amazon
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors
Chris Neiger has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Amazon and Microsoft
The Motley Fool recommends the ing options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft
The Motley Fool has a disclosure policy.
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