2. Amazon.com, Inc. (NASDAQ:AMZN)
Short Interest as % of Shares Outstanding: 0.68%
Number of Hedge Fund Holders: 308
Amazon.com, Inc. (NASDAQ:AMZN) is a global technology company known for its various offerings in e-commerce, cloud computing, digital streaming, and AI. While it is widely recognized for its e-commerce platform and Prime membership, it has also made advancements in the 5G technology sector through its cloud computing arm, Amazon Web Services (AWS). It is one of the best 5G stocks to buy according to short sellers.
AWS provides a variety of solutions tailored for the development and management of 5G networks, including AWS Private 5G, Edge Computing for 5G, and AWS 5G Core Network Solutions. AWS Private 5G is a managed service designed to assist businesses in setting up, managing, and expanding their own private 5G networks on their premises.
In addition, AWS partners with telecom operators such as Verizon to aid in their 5G deployments. AWS also offers edge computing solutions, including AWS Outposts, which enable telecom providers to deliver computational power directly to businesses.
In the second quarter, 308 hedge funds had stakes in Amazon (NASDAQ:AMZN), with total positions worth $65.8 billion. As of June 30, Fisher Asset Management is the most significant shareholder in the company with a stake worth $8.46 billion.
Amazon (NASDAQ:AMZN) is well-positioned to capitalize on the growing need for cloud computing and data infrastructure, which are crucial for the expansion of 5G networks. As the adoption of 5G technology progresses, there is a rising demand for innovative cloud services and enhanced data processing capabilities, making AWS a key player in this space.
According to a media brand, CRN, AWS has a dominant position in the global cloud market, where it had a 31% share in the first quarter. This leadership is supported by the company’s extensive investment in product development, including custom AI chips and advanced software, which supports its growing role in AI cloud services.
Amazon (NASDAQ:AMZN) saw its total sales rise by 10% to $148 billion in the second quarter, with projections for the third quarter indicating a growth rate of 8% to 11%. AWS contributed $9.3 billion in operating income for the quarter, accounting for 63% of the company’s total operating income. CEO Andy Jassy highlighted that over the past 18 months, AWS has introduced more machine learning and generative AI features than all other major cloud providers combined. Furthermore, the company plans to invest nearly $150 billion in data centers over the next 15 years as it anticipates a surge in demand for AI cloud services.
Diamond Hill Capital stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:
“Among our top individual contributors in Q2 were Amazon.com, Inc. (NASDAQ:AMZN), Texas Instruments and Mr. Cooper Group. Internet retail and cloud infrastructure company Amazon is benefiting from strong profitability, particularly in its Amazon Web Services (AWS) business. Shares also received a boost amid growing optimism around the demand for AWS as Amazon customers’ investments in generative AI projects continue growing.”
