This top tech enterprise generated $691 billion in trailing-12-month revenue, but it benefits from multiple secular trends.
Companies shifting their IT spending to the cloud, while also leveraging AI tools more, will provide a growth lever.
Investors can register solid stock gains from the combination of higher earnings and valuation expansion.
10 stocks we like better than Amazon ›
Adding companies to your portfolio that are rapidly growing revenue or earnings can be a smart way to see your money compound. The challenge, of course, is to identify the businesses that can perform well over long periods. Fundamental gains can be short lived, so it makes sense to figure out the right opportunities that are durable. Thankfully, there’s something hiding in plain sight.
Investors looking for a top growth stock to buy with $1,000 should seriously consider this dominant tech business. Continue reading to learn more.
Image source: Amazon.
The company in question is Amazon(NASDAQ: AMZN), which has become one of the world’s most valuable enterprises. Its market cap is just under $2.5 trillion (as of Dec. 30). And over the last 12 months, it has collected $691 billion in revenue. That’s a massive sum, but there’s one obvious reason to believe Amazon’s top line will keep expanding, eventually crossing the $1 trillion mark with ease. The business is positioned to gain from multiple secular trends.
We all know Amazon as the dominant player in the e-commerce market. Consumers can find almost anything they desire on the online marketplace, even cars. While this segment is more mature these days, it still has expansion potential. In the U.S., 84% of the retail sector is still represented by in-person shopping. There’s no business better positioned to continue benefiting from this trend.
Amazon also holds a long-held leadership position in cloud computing. There is pressure from rivals like Microsoft Azure and Alphabet‘s Google Cloud, but Amazon Web Services (AWS) is the top player in the market. Grand View Research estimates the global cloud industry’s revenue will triple to $2.4 trillion in 2030. What’s more, CEO Andy Jassy believes that 85% of IT spending has yet to transition to the cloud, so there’s plenty of opportunity to grow meaningfully for a long time.
When it comes to artificial intelligence (AI), AWS is Amazon’s golden goose. Businesses in virtually all industries want to harness the power of this technology to improve their operations and stay competitive. Leaning on AWS and its various AI products and services is a no-brainer decision.
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“Customers want to be running their core and AI workloads in AWS given its stronger functionality, security and operational performance,” Jassy said on the third-quarter 2025 earnings call.
Another powerful tailwind driving Amazon is Prime Video, one of the leaders in streaming entertainment. It brings households into the Amazon ecosystem while boosting viewer engagement. This supports the company’s booming digital ad operations, which introduce another potent sales driver. Digital ad revenue soared 22% year over year in Q3 (ended Sept. 30) to $17.7 billion.
In the past decade, Amazon shares have climbed 567%. Even so, the current valuation doesn’t look too demanding. It might actually signal that the stock is cheap. Investors can buy shares today at an enterprise-value-to-earnings-before-interest-and-taxes (EV-to-EBIT) multiple of 31.8. In the past decade, the metric has rarely been cheaper. This favorable setup introduces the possibility that investors will benefit from valuation expansion, which can be a critical component of portfolio returns.
The EV-to-EBIT ratio will expand if market sentiment improves over time. For this to happen, Amazon must continue to perform well from a fundamental perspective, which goes without saying. Besides the prospect of higher revenue, profit growth is one area that investors should continue to focus on. Between 2021 and 2024, Amazon’s net income increased at a compound annual rate of 21%. And from 2024 to 2027, consensus analyst estimates call for earnings per share (EPS) to rise at a yearly clip of 20%.
Combining the prospects of revenue and profit gains with a higher valuation multiple makes Amazon a fantastic growth stock to buy with $1,000 right now.
Before you buy stock in Amazon, consider this:
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The Ultimate Growth Stock to Buy With $1,000 Right Now was originally published by The Motley Fool
