2 Growth Stocks to Buy and Hold Forever

Identifying stocks that you can buy now and forget about is ideal. These companies have long-term sustainable advantages, aren't subject to fleeting trends, and can be bought for a reasonable price today. Few companies qualify to be on this list, but I think Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN) are at the top.

Both Alphabet and Amazon have proven they can weather many storms and maintain their dominance. I think each is worth buying right now and can be placed in a portfolio without much concern about them underperforming the market.

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Alphabet

Alphabet is better known as the parent company of Google, although it owns several other properties. Alphabet is part of the backbone of the entire internet, and its platforms are adapting to the new age of generative artificial intelligence (AI).

A few months back, most people were convinced that generative AI would replace Google. Now, that future seems less likely, especially because Google has integrated its generative AI model, Gemini, into its search function via AI Search Overviews. This has helped Google stay relevant and showcased its strength during Q3 with revenue growth of 15% year over year. Considering how mature Google's business is supposed to be, this result encourages investors that Alphabet will be just fine in the new age of generative AI.

Alphabet is also heavily investing in its cloud computing platform, Google Cloud. Google Cloud is the third-largest cloud computing provider right now, and its profitability is rapidly increasing alongside its growth. During Q3, Google Cloud's revenue rose 34% year over year, and its operating margin rose from 17% last year to 24% this year.

Cloud computing demand is expanding from a general migration to all of the new AI workloads, and this is a sustainable growth trend that should persist for years to come.

Alphabet is far from done growing, and it's not a loser in the AI arms race; it's a leader. This position will allow Alphabet to continue producing strong results for years to come, making it an excellent stock to buy now and hold on to forever.

Amazon

Amazon is well known for building the world's most dominant e-commerce ecosystem. In the U.S., you'd be hard-pressed to find consumers who aren't Amazon Prime members or haven't purchased something from Amazon. However, that's not a top reason to invest in Amazon.

While Amazon's commerce platform has become nearly unstoppable, it isn't delivering the growth like it used to in the past. However, Amazon has found growth in two ancillary businesses: advertising and cloud computing. Amazon is the largest cloud computing provider, but its growth has trailed competition like Google Cloud and Azure over the past few quarters.

Those fortunes may be changing, as Amazon Web Services (AWS) posted 20% revenue growth during the third quarter. While that's still not as fast as its competitors' growth rates, it's an important reacceleration of growth, showcasing that the competition isn't leaving AWS behind.

Another area where Amazon is seeing strong growth is in its advertising wing. It ad services division grew revenue 24% year over year to $17.7 billion. Considering that advertising tends to have much higher margins than commerce sales, this is a key factor for Amazon's growing profitability.

Although Amazon's commerce divisions are fairly mature, it still managed to post a 10% growth rate during Q3. This goes to show that even though Amazon is an established company, it can deliver excellent growth across all business units.

I think this makes Amazon an excellent growth stock to buy now and hold forever, and the stock could still have plenty of room to run between now and 2026, especially if AWS and ad services continue their impressive growth.

Keithen Drury has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool has a disclosure policy.