10 AI News Updates You Should Not Miss

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1.  Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286

Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. On February 7, RBC Capital analyst Brad Erickson raised the firm’s price target on the stock to $265 from $255 and kept an “Outperform” rating on the shares. The analyst told investors in a research note that the company’s Q4 results were mixed with a slight miss on third-party seller services and advertising revenues. There is also an implied $100B+ capex guide. These factors outweigh the company’s solid figures from Amazon Web Services (AWS) and continued EBITDA outperformance. The firm also stated that Amazon.com shares are “crowded” and the AI “spend money to make money” debate will undoubtedly continue, but AWS’s high margin growth and further network cost efficiencies will help the company grow its earnings at a level that justifies its valuation.

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: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

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