Investing in businesses that increase revenues and profits over the long term is a smart way to put money to work in the stock market. While a lot of attention goes to earlier-stage companies that are posting monster gains that might not be so durable, it's worth looking at mature enterprises that have dominant industry positions.
Here's the ultimate growth stock to buy with $1,000 right now.
Image source: Amazon.
The sky is the limit
In the past five years, Amazon's (AMZN 1.52%) net sales rose at a compound annual rate of 21%. Between 2025 and 2028, the top line is projected to increase at a yearly clip of 11.3%, according to consensus analyst estimates. The company is on track to exceed $1 trillion in annual revenue before this decade comes to an end. This is absolutely mind-boggling.
These revenue jumps aren't turning any heads. However, it's the durability that stands out. Amazon isn't some one-hit wonder. Its growth is long-lasting thanks to many tailwinds.
Online shopping continues to take share from physical retail, benefiting Amazon's e-commerce marketplace. Digital advertising, perhaps an overlooked segment, saw sales surge 23% year over year in the fourth quarter. The rise of streaming entertainment boosts the value proposition of a Prime membership, supporting the Amazon flywheel.
Then there's artificial intelligence (AI) and cloud computing. Companies are moving their IT infrastructure off-premises. What's more, there is heightened interest to leverage the latest AI tools. This propels Amazon Web Services, which collected $129 billion in revenue and $46 billion in operating income in 2025.
NASDAQ: AMZN
Key Data Points
Spend money to make money
Like its big tech peers, Amazon's spending is surging. Its capital expenditures are expected to total $200 billion in 2026. That's up more than 50% from $131 billion last year.
When a company announces a plan to spend a massive sum like this, investors have every right to be concerned. The ultimate payoff from all of these AI-related cash outlays is yet to be determined. That uncertainty sparks uneasiness from the market.
However, management is doing what it believes is the best move. It sees robust demand for AI, so it makes sense to make the necessary investments to bolster computing infrastructure.
"What we are continuing to see is as fast as we install this capacity, this AI capacity, we are monetizing it," CFO Brian Olsavsky said on the Q4 2025 earnings call. That's an encouraging sign. The leadership team has no intention of missing out on revenue opportunities.
Investors can add one of the most impressive businesses in the world to their portfolios by paying an enterprise-value-to-earnings-before-interest-and-taxes multiple of 30.5, which is near a 10-year low. That's a very reasonable valuation.
