Two Promising Stocks to Buy and Hold for Future Growth

Key Points

• The AI-induced “software apocalypse” is impacting software companies, but some are thriving.

• Microsoft reported an 18% year-over-year revenue increase of $90 billion for Q4 FY 2026, while Shopify’s revenue rose 34% to $3.6 billion in Q2 FY 2026.

• Microsoft’s cloud sales grew 27%, with Azure alone increasing by 43% year-over-year; Shopify’s net income increased by 30% to $439 million.

Microsoft and Shopify have demonstrated resilience amid a challenging software market attributed to AI advancements. In its fourth fiscal quarter ending June 30, 2026, Microsoft reported $90 billion in revenue, up 18% from the previous year, with cloud services growing by 27%, driven by a 43% sales increase in Azure. The company also has a significant $678 billion cloud backlog, indicating sustained demand.

Simultaneously, Shopify’s second-quarter revenue reached $3.6 billion, an increase of 34% year-over-year, and net income (excluding equity investments) was $439 million, up 30% compared to the prior year. The company expects continued growth supported by AI initiatives that are driving more traffic to merchants’ stores. Overall, both firms are capitalizing on AI technologies to enhance their operations and growth potential.