These competitively positioned businesses may reward patient investors.
Growth stocks are powerful wealth-building tools, but the market doesn’t give them to you for free. Volatility is the price you pay for significant gains over the long term. It gives you the chance to buy outstanding businesses at more reasonable prices — and potentially boost returns over time.
The best opportunities often come from companies with durable competitive advantages. If you’re ready to put $1,000 to work right now, here are two growth stocks to buy.
Image source: Getty Images.
1. Netflix
Netflix (NFLX 3.08%) has fallen sharply from its recent highs, creating a compelling entry point for investors. This is a resilient business with over 300 million paying households, generating consistent revenue and cash flow.
Netflix investors can look forward to continued growth. It still captures a small share of TV viewing time in key markets, leaving room to attract millions more subscribers worldwide. This is where Netflix’s profitability is turning into a real competitive advantage. In 2025, Netflix generated $9 billion in free cash flow. It is investing those resources in expanding the variety of content available on its platform, including games. While competing services may burn a hole in their financial statements to spend billions on content every year, Netflix can do so while growing profits.
Today’s Change
(-3.08%) $-2.53
Current Price
$79.68
Key Data Points
Market Cap
$336B
Day’s Range
$79.45 – $82.46
52wk Range
$79.22 – $134.12
Volume
1.3M
Avg Vol
47M
Gross Margin
48.59%
The company’s consistent financial results, along with its content expansion strategy, make it a solid investment. Investors can buy shares at a forward price-to-earnings ratio of 27. Assuming it meets analysts’ expectations for 20% annualized earnings growth and trades at the same earnings multiple, the stock could double in value within the next five years.
2. Cloudflare
Cloudflare (NET +5.24%) provides the backbone internet infrastructure that enables seamless, secure access to many popular websites. Over a third of Fortune 500 companies use Cloudflare. It routes connections through one of its servers, which helps speed up browsing while protecting the host site from security threats.
Today’s Change
(5.24%) $9.43
Current Price
$189.41
Key Data Points
Market Cap
$66B
Day’s Range
$185.73 – $203.62
52wk Range
$89.42 – $260.00
Volume
4.1K
Avg Vol
3.7M
Gross Margin
84.15%
Cloudflare’s competitive advantage in this market is evident in its strong financials. Its revenue grew 31% year over year to $562 million in the recent quarter. It also generates high gross margins of over 75%, signaling that its content delivery network services are indispensable for large businesses.
The surge in artificial intelligence (AI) is opening more opportunities for Cloudflare. The company estimates that 80% of AI companies are already Cloudflare customers. This puts the company in a solid position to benefit from the spread of AI agents routed through its network.
The stock trades at a high multiple of sales and earnings, but that’s always been the case with Cloudflare. Investors value the company’s high gross margins, recurring revenue, and significant growth opportunities. The stock has returned around 800% since 2019 and should continue to appreciate over the long term.