10 Best Advertising Stocks to Buy According to Short Sellers

3. Amazon.com, Inc. (NASDAQ:AMZN)

Short Interest as % of  Shares Outstanding: 0.68%

Number of Hedge Fund Investors In Q2 2024: 308

Amazon.com, Inc. (NASDAQ:AMZN) is one of the biggest eCommerce companies in the world, which also makes it a key player in the advertising industry. This is because Amazon.com, Inc. (NASDAQ:AMZN)’s eCommerce site which attracted 3.25 billion users in June according to SemRush, creates a golden goose of users for large and small businesses to target. Amazon.com, Inc. (NASDAQ:AMZN) helps its sellers to run marketing campaigns through the Amazon Ads platform. Some features under this include cost per click (CPC) ads for sponsored brands, products, and displays. Amazon.com, Inc. (NASDAQ:AMZN) also operates in the SaaS advertising industry through its AWS business which allows customers to run advanced marketing analytics and manage customer experiences. As a whole, Amazon.com, Inc. (NASDAQ:AMZN)’s hypothesis depends on its ability to optimize its fulfillment networks, increase same day deliveries, leverage AI in its business and in AWS product offerings, and the broader economic health.

Patient Capital Management mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter. Here is what the firm said:

“Amazon.com Inc. (AMZN) moved higher throughout the second quarter as AI demand helped to reaccelerate growth in their AWS business. It looks as though the cloud business is finally past the customer cost optimization period with customers restarting their cloud migrations as well as expanding spend on AI projects. Despite the top and bottom-line improvement seen in the first quarter, the company is significantly underearning its long-term potential as it continues to reinvest aggressively in the business. With 80% of global retail sales still being done in physical stores and 85% of global IT spending still on-premises, we see a long-run way for the dominant player in the cloud, retail, and increasingly logistics and advertising space.”