After a strong run for the stock market the past two years, volatility has returned in 2025. But there are pockets of opportunity among top growth stocks. While the S&P 500 (SNPINDEX: ^GSPC) is down 8% at the time of writing, some companies that entered the year with strong momentum are holding up quite well.

Shares of Palantir Technologies (NASDAQ: PLTR) and Uber Technologies (NYSE: UBER) are two of the best performing stocks in the S&P 500 this year. Let's look at what is driving their share prices higher, and whether these top performers are still good investments.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. Palantir Technologies

Leading businesses and governments are modernizing with artificial intelligence (AI). Palantir Technologies is one of the top providers of AI-powered data analytics software. The stock has had a phenomenal run, rising 1,500% since 2022. It has continued to perform well in 2025, up 33% as of April 23. But investors have to wonder if the stock has gotten too far ahead of the company's actual performance.

Palantir delivered accelerating revenue growth over the past year. In the fourth quarter, U.S. commercial revenue grew 64% year-over-year. Companies are choosing Palantir to improve efficiency and speed up decision making. For example, a leading telecommunications company recently signed a $40 million deal with Palantir, which will free up capital from using older technology and equipment.

Palantir also is playing a vital role in strengthening the U.S. military with cutting-edge technology. Its U.S. government revenue grew 45% year-over-year in Q4. Palantir developed its Tactical Intelligence Targeting Access Node (TITAN) for the U.S. Army that uses AI to improve strike targeting and accuracy on the battlefield.

These use cases indicate the level of sophistication of Palantir's AI capabilities, and that's why leading companies continue to sign multimillion-dollar deals. It's also benefiting the stock that the company is converting these growing revenues into a healthy profit. The company made $462 million in net profit on $2.9 billion of revenue last year.

The only negative with Palantir stock is the valuation. The shares trade at an astronomical 548 times earnings at the time of writing. At these lofty share prices, the stock could be overshooting the company's worth. While it's impossible to predict the timing, investors have to assume that this nosebleed valuation could lead to a downward correction in the share price. It might be best to wait for the stock to settle at a lower earnings multiple before starting an investment.

2. Uber Technologies

Investors shouldn't overlook the momentum happening in the global ride-hailing market. Uber Technologies has made substantial investments in its technology and service, and it is translating to strong growth. The stock climbed 200% since 2022 and 22% year to date through April 23, but its valuation could leave room for more gains over the next year and beyond.

Uber's growth suggests it is going after a huge opportunity in the transportation market. It offers multiple services tailored for healthcare, freight, and enterprise. It's also expanding into membership that offers special discounts on Uber Eats and rides and has already reached 30 million subscribers so far, up 60% year-over-year in the fourth quarter.

It's also investing in the future. The company has partnered with Google's Waymo self-driving car unit, in addition to China's WeRide. Its autonomous ride service recently launched in Austin, Texas, and is soon launching in Atlanta, Georgia. Overall, Uber currently has multiple partners working on autonomous ride and delivery services.

Uber benefits from a capital-light business model, where drivers maintain their own vehicles, which leaves a lucrative revenue stream coming from fees on every ride and delivery. Last year, Uber's operating profit more than doubled to $2.8 billion, and there seems to be more room for growth as the company improves margins.

Analysts expect Uber's earnings to grow at an annualized rate of 30% in the coming years, yet investors can buy shares for just 23 times 2025 earnings estimates. That's a fair multiple for an average growth stock, so investors should expect Uber shares to deliver satisfactory returns over the long term.

Should you invest $1,000 in Palantir Technologies right now?

Before you buy stock in Palantir Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Ballard has positions in Uber Technologies. The Motley Fool has positions in and recommends Alphabet, Palantir Technologies, and Uber Technologies. The Motley Fool has a disclosure policy.

Wall Street's concerns over tariffs and how President Donald Trump's trade wars will impact the U.S. economy have sent the Nasdaq Composite down by around 18% year to date, and it's off more than 20% from its peak. But if you have some extra cash available that you won't need to spend in the near term or use for other financial priorities like reducing debt, the market's current sell-off offers a great opportunity to invest.

Shares of the best companies in the world are trading at prices that may significantly undervalue their future growth. For less than $500, you can buy one share each of Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL). These are two of the strongest consumer brands, and both are in great positions to benefit from the growing use of artificial intelligence (AI).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. Amazon

The first stock I would buy with $500 is the leading cloud service and online retail brand. The market sell-off has taken Amazon down to $166 per share at the time of this writing. Amazon generated record profits and cash flow last year, which last summer brought its price-to-free-cash-flow valuation down to the lowest level in over 15 years.

Since 2005, on a price-to-cash-from-operations basis, Amazon stock has traded at multiples ranging from 12 to 48. Today, it's trading at just 15, which is a steal of a price for investors, particularly considering that it doubled its cash from operations over the last five years.

The cloud infrastructure services market was worth $330 billion in 2024, and it's growing at a rate of more than 20% annually, according to Synergy Research. Amazon Web Services (AWS) is well positioned for long-term growth as spending on AI continues to grow. More than 1,000 generative AI applications have already been built using the tools available on AWS.

Amazon's AI revenue is growing at a triple-digit percentage annually. The operating profit from that segment of the business totaled nearly $40 billion in 2024, comprising 58% of the company's top line. AI is a once-in-a-generation opportunity, and it's a key growth driver for Amazon's business and share price.

Amazon could be one of the biggest beneficiaries of AI over the long term. It's an expensive technology in part because it must be powered and trained using high-end chips, the majority of which come from a single supplier (Nvidia), and demand for them is outpacing supply.

But Amazon is in the process of reducing the cost of AI for enterprise customers by investing in developing its own AI chips. As it becomes more cost-efficient to use AI supported by AWS, that could drive even more demand for the cloud service.

With a business that is producing a gusher of profits as AI takes off, Amazon is one of the best growth stocks to buy in the wake of the recent market correction.

2. Apple

Not long ago, Apple shares were trading at premium price-to-earnings multiples based on high expectations that the new AI features it was rolling out would boost sales of its newest iPhones and computers. However, the stock has fallen by 24% from its recent highs, bringing the share price under $200 for the first time in about a year. It's trading at a more reasonable earnings multiple, which should position those who buy it now for a rewarding result over the long term.

At its recent peak, the stock was trading over 35 times this year's earnings estimate. It is now trading at a more reasonable valuation of 26 times forward earnings. Trump's tariffs could increase iPhone prices and put pressure on sales -- the smartphone again accounted for more than half of Apple's total revenue last quarter -- but over the long term, the company's growth prospects look solid.

Apple Intelligence could drive more growth for the company. It has seen stronger sales of the iPhone 16 in markets where the AI offering is available, but it's early. Over the long term, Apple Intelligence will get smarter and could open up growth opportunities that are not reflected in the stock's current valuation.

The consumer tech giant has a massive installed base of more than 2.3 billion active devices. The iPhone is its most popular device, and it's a product customers carry with them everywhere they go. AI features can make these devices even stickier and drive more sales of services (e.g., apps and subscriptions) -- Apple's fastest-growing revenue opportunity.

Apple is generating huge profits, with $96 billion in trailing-12-month net income on $396 billion of revenue. There's no doubt it's going to benefit tremendously from Apple Intelligence.

Buying Apple shares at their recent prices should lead to solid returns over the next decade. Analysts' consensus estimate is that the company's earnings will grow by just over 10% annually. Given its opportunities to drive more sales by marketing its latest products with their new AI features, investors can be confident that the most valuable brand in the world will grow more valuable over time.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $266,353!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $38,790!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $566,035!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of April 21, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Amazon, Apple, and Nvidia. The Motley Fool has a disclosure policy.

With the return of market volatility, anxiety levels are rising for retirement savers, but if you're not going to be tapping into your savings for many years, there's no reason to worry. Stock market dips are historically the best time to invest, because lower share prices allow you to gain more of a company's earnings, which leads to great returns when the markets recover.

To help you in your search for undervalued growth stocks, here are two excellent candidates.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. Meta Platforms

Meta Platforms (NASDAQ: META) is coming off a year of strong growth as it continued to invest in artificial intelligence (AI) to bring more personalization to its social media platforms. The company is set for strong growth yet trades at a reasonable 24 times earnings.

Meta Platforms spends billions on technology every year to support the growth of its apps, and importantly, AI. More than 700 million monthly active users have tried its Meta AI assistant, and management expects that number to grow to 1 billion in 2025.

Meta AI is quickly scaling into one of the most used AI assistants. The growing adoption highlights the advantage the company has with more than 3.3 billion people using its services every day across Facebook, Instagram, WhatsApp, Messenger, and Threads.

This large user base drives substantial advertising revenues. Last year, Meta Platforms earned $62 billion of net income on $164 billion of revenue, with the top line growing 22%. Other than Meta AI, the company also offers professional AI tools that improve ad targeting across its family of apps, which is benefiting the business. Over the long term, Meta could discover new revenue streams from offering premium AI services that pads the company's bottom line.

Analysts expect Meta to deliver 16% annualized earnings growth in the coming years. While no one has a crystal ball for the stock in the near term, investors that buy shares today should see returns that roughly follow the underlying growth of the business from here.

2. The Trade Desk

The Trade Desk (NASDAQ: TTD) is a leading digital ad-buying platform that is benefiting from the growth in digital advertising -- a market valued at $800 billion and growing.

A small revenue miss compared to expectations last quarter sent the stock plummeting, but nothing has changed the company's competitive position or long-term opportunity, which means investors have a great opportunity to buy shares on the cheap.

Ad agencies and brands love The Trade Desk because it offers a wide range of ad inventory, and it offers the technology to make profitable ad-buying decisions. For example, its Kokai AI platform can quickly sort through millions of ad impressions every second to help advertisers find the right deal. Better pricing, targeting, and ad performance is helping The Trade Desk gain more clients.

The Trade Desk generates revenue by charging a fee of the total amount its customers spend on ads and other services. Revenue grew 26% to $2.4 billion in 2024, and the business earned a healthy profit margin of 16%.

Connected TV continues to be one of biggest opportunities, where The Trade Desk has valuable partnerships with Roku and Disney. The connected TV ad market is estimated to reach $46 billion by 2026, according to Statista, providing tremendous upside for the company.

Revenue is expected to grow 18% this year, yet the stock is trading at its lowest valuation in years. Analysts expect earnings to reach $3.89 by 2028, which makes the current share price of around $50 look like a bargain. Investors that take advantage of the sell-off are likely looking at handsome gains down the road.

Should you invest $1,000 in Meta Platforms right now?

Before you buy stock in Meta Platforms, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Roku, The Trade Desk, and Walt Disney. The Motley Fool has a disclosure policy.

Sudden drops in the stock market can leave investors with an uneasy feeling. While market crashes have happened several times over the last century, they all come to an end and prove to be the best times to buy stocks.

If you're looking for resilient growth stocks that could hold up better than most in this environment, while positioning you for long-term gains, here are two stocks to consider buying right now.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

1. Netflix

Shares of Netflix (NASDAQ: NFLX) soared last year and are significantly outperforming the S&P 500 year to date. Its focus on delivering affordable digital entertainment should make it a resilient investment for 2025 and beyond.

Netflix has a strong upcoming content slate that serves as a catalyst for subscriber growth. Returning hits like Squid Game, Stranger Things, and Wednesday should attract millions of viewers. Plus, Netflix's push into live events is proving to be a game changer. The livestreams of two NFL games on Christmas Day led to an average minute audience surpassing 30 million, which indicates a promising opportunity for Netflix to widen its appeal.

Paid memberships grew 15.9% year over year in the fourth quarter, crossing 300 million for the first time. A combination of live events and demand for the cheaper ad-supported subscription tier contributed to strong growth in the quarter.

The ad-tier plan is another catalyst that should deliver profitable growth for Netflix this year. Management's guidance calls for ad revenue to double in 2025, which should bolster the company's earnings.

Analysts expect Netflix's earnings to grow at an annualized rate of 24% in the coming years. The stock could fall in the near term, but a strong content lineup could help it perform relatively well. Long term, Netflix's momentum in signing up subscribers indicates it is nowhere near its ceiling.

2. Take-Two Interactive

Take-Two Interactive (NASDAQ: TTWO) makes some of the best-selling video games in the $400 billion video game industry. The stock rocketed to new highs earlier this year and is outperforming the S&P 500 year to date. It has a strong release slate for 2025 that should lead to record revenue and potentially higher share prices over the next year.

Take-Two's catalog of titles across consoles, PC, and mobile platforms generates more than $5 billion in annual revenue. This year, it is releasing new titles from some of its most popular franchises. The most highly anticipated title is Grand Theft Auto VI. All the previous releases in the Grand Theft Auto series have sold a cumulative 440 million copies, with the most recent version comprising nearly half of those sales.

Grand Theft Auto gets more popular with every release, which is why management expects this to be a record year for the company. Analysts are currently projecting Take-Two to haul in $8.2 billion in adjusted revenue for fiscal 2026 (ending in March). This would represent an increase of approximately 46% over expected fiscal 2025 revenue.

While video game sales are not immune to a recession, spending on entertainment is generally more resilient than it is in other industries. Like Netflix, Take-Two's upcoming release schedule should go a long way to mitigate weak consumer spending. Assuming Take-Two delivers on analysts' estimates, it would cement the company's position as a leader in the video game industry.

Grand Theft Auto VI will be monetized for years to come with content updates, similar to how a lot of video games make money these days. Analysts expect Take-Two's earnings per share to reach $9.24 in fiscal 2027, representing a significant jump over the last few years. With the stock currently trading at $195, the shares have the potential to deliver market-beating gains in 2025 and beyond.

Should you invest $1,000 in Netflix right now?

Before you buy stock in Netflix, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Take-Two Interactive Software. The Motley Fool has a disclosure policy.

Warren Buffett has built a fortune in the stock market by playing the long game. Over the last 59 years, his investing skills guided Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to an incredible return of more than 5,000,000%.

When the stock market falls, Buffett's top holdings are a great place to find quality stocks that you can be confident will bounce back. Here are two of his largest investments that are no-brainer buys right now.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. Apple

Apple (NASDAQ: AAPL) is Berkshire Hathaway's largest investment, with 300 million shares at the end of 2024. The iPhone maker is ranked as the most valuable brand in the world by Brand Finance. The company's robust profits earned from its products, on top of growing revenue from services, make it a solid investment for the long term.

Apple is poised to see more growth as it releases Apple Intelligence across more countries. It just rolled out these artificial intelligence (AI) features to iPhone and iPad users in Europe. In the last earnings report, CEO Tim Cook noted that iPhone 16 performance has been stronger in markets where Apple Intelligence is available.

That feature is a strong catalyst for growth. It promises to drive more upgrades and potentially convert customers of rival brands to switch to the iPhone, especially as Apple continues to improve its capabilities. The active installed base of its devices continues to hit record highs, which indicates growing brand appeal.

More devices in people's hands spell more opportunities to increase Apple's lucrative services segment. That division's revenue grew 14% year over year in the December-ending quarter and now comprises 21% of the company's total.

Buffett recognizes that Apple has tremendous brand power, which it uses to generate high margins from product sales. The company ended the last quarter with $141 billion of cash and marketable securities. It produced $96 billion of net profit over the last year and returned more than $15 billion to shareholders in dividends. It is printing cash like there's no tomorrow.

While Apple is not a high-growth business, it can raise the value of your investment. Analysts expect earnings to increase at an annualized rate of 10% over the next several years. A powerful brand and loyal customer base make it a solid long-term holding.

2. Berkshire Hathaway

Buffett's masterpiece is one of the best stocks you can hold in your retirement account. He continues to be the largest shareholder, with 38% of the Class A shares.

Berkshire owns dozens of businesses, along with a stock portfolio that was worth $271 billion at the end of 2024. The conglomerate's shares have run circles around the S&P 500 over the last five years, up 161% compared to the index's return of 88% at the time of this writing.

The stock has continued to outperform the broader market year to date. Most investors realize that a market sell-off can be valuable for Buffett to find opportunities to put more cash to work at attractive valuations, and therefore add more profitable revenue streams for Berkshire's business.

It entered the year with $331 billion in cash and short-term investments, providing plenty of firepower for Buffett to use if an opportunity presents itself. Berkshire's cash and stock holdings represent close to half of its $1.1 trillion market cap, which indicates solid value underpinning the stock right now.

That value is further supported by $47 billion of operating earnings from Berkshire's businesses last year. These include the Burlington Northern Santa Fe railroad; See's Candies; GEICO; Duracell; and one of the largest energy companies in the U.S., Berkshire Hathaway Energy. Total operating earnings are up 72% over the last three years.

Berkshire Hathaway is a no-brainer investment. Its growing earnings and large stakes in Apple, American Express, Coca-Cola, and several other outstanding businesses appear undervalued right now, making the stock a great buy.

Should you invest $1,000 in Apple right now?

Before you buy stock in Apple, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

American Express is an advertising partner of Motley Fool Money. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.

It's hard to watch the value of your investments falter in a short period, but everyone is in the same boat. The good news is that market declines are historically excellent buying opportunities. Markets can fall but they inevitably hit bottom and skyrocket back to new highs over time, providing handsome gains for investors who ride through the volatility.

If you've got $3,000 you don't need for other life priorities like reducing debt, this is a great opportunity to invest in competitively positioned companies at better prices. The technology sector will continue to churn out monster winners over the long term. Spending on artificial intelligence (AI) is expected to reach $1.1 trillion by 2031, according to Statista. Here are two stocks to profit off this trend over the long term.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. Nvidia

Nvidia (NASDAQ: NVDA) is enabling the rapid adoption of AI. Its graphics processing units (GPUs) are used in everything from playing video games to powering the largest data centers, where the AI magic happens. It has led the GPU market for many years and continues to dominate, making it one of the best AI stocks to consider holding for the long term.

CEO Jensen Huang will go down as one of the great business leaders of the 21st century. He started Nvidia over 30 years ago and instilled a corporate culture that constantly looks for new opportunities. This is how Nvidia adapted its GPU technology from running video games to powering entire computing systems for training large language AI models.

Nvidia's share of the AI chip market is estimated to be over 80%. It is seeing growing demand from several markets. Leading cloud service providers make up about half of its data center revenue. Nvidia also expects revenue for its autonomous vehicle solutions to reach $5 billion this year. Leaders in healthcare like Mayo Clinic and Illumina are using Nvidia's technology to speed up drug development and AI-powered health services.

Competition will intensify, as other semiconductor companies and cloud leaders are making their own custom AI chips. But Nvidia is a good bet for the long term based on its pace of innovation. In addition to chip hardware, Nvidia also offers software tools like CUDA and TensorRT, which help customers get the most out of Nvidia's GPUs for a given task. Nvidia offers everything needed to build a data center for the AI era.

Nvidia is strong financially. It earned $73 billion in net income on $130 billion of revenue last year. The company has $35 billion of net cash sitting in the bank. These resources are enabling it to continue innovating to meet growing demand for advanced computing systems.

With Nvidia seeing demand across multiple markets like healthcare and automotive, the stock is a good buy on the dip and should continue to reward long-term investors.

2. Snowflake

Snowflake (NYSE: SNOW) is a leading cloud-based platform that helps companies gather valuable insights from their data. Its data management services are offered through the leading cloud services, including Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud, and it is starting to see strong adoption for AI offerings.

Its cloud-agnostic position is an advantage. Companies can use Snowflake's data services across multiple clouds, which enables more collaboration and positions the business to capture market share as demand for AI software increases. Over 4,000 customers are now using Snowflake's AI and machine learning tools on a weekly basis.

The stock's recent decline sets up a great buying opportunity. Snowflake continues to report strong revenue growth and sees existing customers spending more on its services. This is noted by a 28% year-over-year increase in product revenue last quarter, with a 126% net revenue retention rate. Snowflake now has 580 customers generating more than $1 million in product revenue, up from 461 a year ago.

Competition is tight in the cloud market, but a key sales pitch for Snowflake's services is cost savings. Management said on its last earnings call that it is seeing more customers save over 50% by moving their data from other providers to Snowflake.

AI adoption is pushing more companies to find cost-effective ways to use AI with their data so they don't get left behind. This is a huge opportunity for Snowflake. The market for enterprise infrastructure software is expected to double from 2023 levels to reach $342 billion by 2028, according to Gartner.

Snowflake is not profitable on a net income basis, but it generated $884 million of free cash flow on $3.4 billion of product revenue last year. The company's growth on top of a lower share price has brought its price-to-sales multiple down to 12, which is reasonable for a fast-growing cloud leader and should set the stage for attractive long-term gains.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $244,570!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $35,715!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $461,558!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of April 5, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia, and Snowflake. The Motley Fool recommends Gartner and Illumina 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.