10 AI News Investors Should Not Miss

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1. Amazon.com Inc (NASDAQ:AMZN)

Number of Hedge Fund Holders: 308

Amazon.com Inc (NASDAQ:AMZN) is an American multinational technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. The company uses artificial intelligence for everything from reinventing shopping experiences to automated ad creatives, streamlining healthcare access, and powering the world’s most comprehensive and broadly adopted cloud platform.

On Monday, October 28, investor Ray Wang talked about Amazon.com Inc (NASDAQ:AMZN) on CNBC’s Money Movers. Even though the company may be lagging behind its peers on the AI front, the mega-cap tech titan is still a favorite for the principal analyst and founder of Constellation Research. He highlighted Amazon.com Inc.’s (NASDAQ:AMZN) advertising revenue, growing at a 20% annual rate, which is allowing the company to catch up to Google’s ad revenue numbers. Moreover, the company’s massive cloud services business, Amazon Web Services, provides it the flexibility it needs to explore AI integration across its operations. Amazon Prime Video platform is a strong competitor to Netflix as well. Despite all these positives, it is also true that the company is trailing behind its peers in AI capabilities.

“The bright side is they’re done with their big CapEx investments into their data centers, whereas Microsoft has a lot of CapEx investment to do and Google has to play a lot of catch up. So Amazon has a little bit of time to get their AI story right”.

-Investor Ray Wang

While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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