My 2 Favorite Stocks to Buy Right Now

Two of my favorite growth stocks right now are Amazon (NASDAQ: AMZN) and Dutch Bros (NYSE: BROS). I've recently started positions in both. Let's look what makes them attractive right now.

Amazon

Amazon's stock has been a laggard over the past few years, as investors have started to question the company's large capital expenditures (capex) and the slower growth of Amazon Web Services (AWS) compared to its cloud computing peers. The company is best known for its e-commerce business, but AWS is its most profitable and fastest-growing segment.

AWS revenue climbed 17.5% last quarter, but that trailed the more than 30% growth of Microsoft's Azure, which grew 39%, and Alphabet's Google Cloud, at 32%. Nonetheless, AWS is still well positioned.

Image source: Getty Images.

It's seeing strong demand as companies look to build their own AI models and apps, and what is unique about it is that Amazon offers several popular third-party large language models (LLMs) that customers can build upon from its Bedrock service. And its SageMaker can help customers make even more customized models.

AWS is also getting in on AI agents with its Strands and AgentCore, which let users build AI agents and then deploy them in a secure, serverless environment. It has also developed its own custom AI chips through its Annapurna Labs subsidiary, which enables it to reduce costs.

These chips are being used by the likes of AI model company Anthropic, which is one of Amazon's biggest AI customers. What also might be overlooked is that Anthropic recently raised $13 billion, much of which will likely go to AWS, helping drive growth as Amazon adds more data center capacity to meet its needs. That's an attractive setup.

Management is using AI and robotics to create the world's most efficient logistics and fulfillment networks. It now operates more than 1 million robots in its warehouses, all of which are orchestrated by its DeepFleet AI model.

It's also using AI to optimize routes, determine which warehouses to store items in, and help drivers find difficult drop-off locations. This is creating huge operating leverage in its e-commerce business, with its North America operating income jumping 47% on just an 11% increase in sales last quarter.

Amazon's stock is trading down, but it is far from out. The company remains an AI and robotics leader, and with shares trading at a forward price-to-earnings ratio (P/E) of roughly 28 times next year's analyst estimates, it's at one of its lowest valuations ever. The stocks of tech giants like Meta Platforms and Alphabet have also been written off in recent years before roaring back, and Amazon looks like the next candidate to follow this path.

Dutch Bros

Dutch Bros is one of the most exciting growth stories in the restaurant space. The coffee chain is seeing strong growth in same-store sales (comps) and expansion, and both appear to be in the early innings.

An innovative drink menu and the launch of mobile ordering have been helping to drive comps growth. This included last quarter, when its comps climbed 6.1%, with company-owned stores performing even better. But the real opportunity on this front for Dutch Bros is the introduction of hot food items.

Management has admitted that it likely has been missing out on some customers getting their morning coffee drinks from its shops due to a lack of hot breakfast items. And food makes up less than 2% of its sales, compared to around 20% for rival Starbucks. The company is testing out a food menu at select locations, which should be a big growth driver, because it would not only drive up ticket sizes but also draw in customers who are looking to get both food and coffee at a single location.

At the same time, the company has a huge expansion opportunity. It recently passed 1,000 locations, and management expects to double that footprint by 2029, with a long-term goal of 7,000 stores nationwide.

What makes Dutch Bros' expansion story even more attractive is the structure of its stores. Instead of large fancy coffeehouses like Starbucks' locations, its shops are typically around 800 to 1,000 square feet with drive-thru windows and walk-up service. That keeps construction costs low and store-level returns high.

Its average unit volumes are over $2 million, which is impressive given its stores' smaller footprint. This allows the company to grow quickly while living within its free cash flow.

Dutch Bros is still a young brand in the early innings of expansion, but it's doing all the right things. Between its opportunity with food and long expansion runway, it is one of my favorite stocks to own for the long term.

Geoffrey Seiler has positions in Alphabet, Amazon, and Dutch Bros. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, and Starbucks. The Motley Fool recommends Dutch Bros and 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.