Key Points
-
Amazon has been actively building its business to be more than just e-commerce and cloud services.
-
Amazon Web Services revenue has grown at a slower pace than rivals Azure and Google Cloud.
-
CrowdStrike estimates its total addressable market for AI-native security solutions to grow from $116 billion this year to $250 billion by 2029.
-
These 10 stocks could mint the next wave of millionaires ›
Growth stocks can be great investments, but I worry that recent examples of a handful of stocks experiencing rapid growth in a relatively short period have made investors less impatient than they should be. Regardless of stock type, the key to building wealth is patience and a long-term mindset.
As Warren Buffett once said: “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.” It’s often easier said than done with the stock market’s volatility, but it should be on your mind anytime you’re buying stocks.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
If you’re looking for growth stocks that are poised to be great investments over the next decade, look no further than the following two.
Image source: Getty Images.
1. Amazon
Amazon (NASDAQ: AMZN) is a company that doesn’t need much of an introduction. The online bookstore-turned-Swiss Army knife of businesses has long been one of the top growth stocks in the stock market — and it still has room to go.
Amazon’s e-commerce continues to be a cash cow, with its North America and international segments (which also include advertising, subscriptions, and third-party sellers) bringing in $100.1 billion (up 11% year over year) and $36.8 billion (up 16% year over year) in the second quarter, respectively.
E-commerce will continue to be Amazon’s foundation, but the microscope has been and will continue to be on its cloud business, Amazon Web Services (AWS). Let’s start with the positives of AWS. Although it was only 18% of Amazon’s Q2 revenue, it continues to be the bulk of its profits (53% of its operating income).
AMZN Revenue (Quarterly) data by YCharts.
The could-be-better news is that AWS is beginning to grow at a slower pace than smaller rivals like Microsoft’s Azure and Alphabet’s Google Cloud. AWS revenue grew 17.5% year over year to $30.9 billion, while Azure and Google Cloud increased revenue by 34% and 32% in their latest quarters, respectively.
AWS’ modest growth seemed to disappoint investors, causing the stock to drop by over 8% in a single day. However, this dramatic reaction seems overdone, in my opinion. Although AWS is still the market leader, its size meant a slowdown was always likely.
If you’re looking for a growth stock to hold on to for the long term, this recent drop in Amazon’s stock gives it a much more attractive entry point, trading at 32.6 times forward earnings versus the 35.6 it was pre-drop. AWS is undoubtedly an important business for Amazon, but it has been actively (and effectively) expanding its business ventures.
2. CrowdStrike
Cybersecurity company CrowdStrike (NASDAQ: CRWD) was in the news for all the wrong reasons last year after it was responsible for the worst IT outage in modern history. However, the company has remained resilient, and in July, the U.S. District Court of Western Texas dismissed a class action lawsuit against the company regarding the incident.
The reason to be excited about CrowdStrike over the next decade is twofold. First, CrowdStrike’s cybersecurity solutions have proven they’re some of the best in the industry. At the end of its fiscal first quarter, 48% of its customers used at least six of its modules (tools), 32% used at least seven, and 22% used at least eight.
This not only shows strong engagement, but it also helps CrowdStrike with retention because it’s not easy for corporations to switch cybersecurity providers due to the logistical and financial costs involved in doing so. CrowdStrike ended the quarter with $4.4 billion in annual recurring revenue, up from $3.6 billion in the previous fiscal year’s Q1.
Its operating income declined by $12 million year over year, but that can be attributed to higher sales and marketing costs to recover from the impact of the July 2024 IT outage. I don’t see this as a continuing trend for the company.
The other reason is the overall growth and importance of the cybersecurity industry. Cybersecurity has become a necessity for virtually any business connected to the internet. CrowdStrike estimates its total addressable market for AI-native security solutions at $116 billion this year and reaching $250 billion in 2029.
CrowdStrike is fairly expensive, trading at 23.6 times its forward sales, but if you’re planning to hold it for at least a decade, this alone shouldn’t be a deterrent. If anything, I recommend taking the dollar-cost averaging approach, slowly but surely buying shares.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,026%* — a market-crushing outperformance compared to 180% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
See the stocks »
*Stock Advisor returns as of August 4, 2025
Stefon Walters has positions in CrowdStrike. The Motley Fool has positions in and recommends Amazon and CrowdStrike. The Motley Fool has a disclosure policy.
