These 2 High-Growth Stocks Could Power the Bull Market’s Next Record Run

When bear markets strike, it feels like they will never end, but investors that focus on buying stocks of companies that continue to post strong revenue growth will be poised to realize sizable gains in the next bull market.

One area to hunt for promising winners is cloud computing. Spending on cloud infrastructure has remained very resilient in 2022, up 30% year over year in the third quarter. Earlier this year, Amazon Web Services CEO Adam Selipsky mentioned that cloud computing is still in the early innings of adoption. 

While the big cloud service providers like Amazon have a bright future, there are even faster-growing companies addressing specific cloud needs that could lead the market higher over the next decade. Here are two of my favorites.

Snowflake

Snowflake (SNOW -2.52%) is seeing tremendous growth by offering companies a single platform for uploading and analyzing massive amounts of data using artificial intelligence. Over the last five years, annual revenue has increased fourfold to nearly $2 billion, and management believes the business can sustain an average annual growth rate of 30% for several more years. 

Snowflake has emerged as the leading data management solution. It integrates with all the major cloud service providers, such as Amazon Web Services and Microsoft Azure. Other cloud companies also offer data analysis tools, but one metric indicates Snowflake is doing it better. For several quarters, Snowflake has maintained a very high net dollar retention rate of over 170%. This means customers spend significantly more with Snowflake after their first year on the platform — a key indicator of its value proposition.

There is a risk that large cloud service providers with greater financial resources than Snowflake could acquire or partner with other data management services to grab a bigger piece of the market, but that’s unlikely for a few reasons. Snowflake already has relationships with many Fortune 500 companies. Most importantly, Snowflake is expanding its competitive lead the more it grows. A key advantage is its data marketplace that allows customers to share and exchange data. This creates a strong incentive for clients to stick with…