10 Best Big-Name Stocks to Buy Right Now According to Short Sellers

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

Number of Hedge Fund Holders: 308

Short % of Shares Outstanding (August 15, 2024): 0.77%

Amazon.com, Inc. (NASDAQ:AMZN) is an online retailer, offering a wide range of products. Its products include books, music, computers, and numerous other products. The company also operates a cloud platform offering services globally.

The company’s Prime business, together with its e-commerce efforts, offers a steady stream of high-margin recurring revenue from the customers purchasing more frequently from its properties. Given its leadership position in cloud infrastructure, AWS provides crucial services throughout industries. As more and more businesses adopt cloud-based solutions, AWS seems to be well-placed to capture a significant share in this high-growth market.

Amazon.com, Inc. (NASDAQ:AMZN) should also benefit from the expected rate cuts by the US Federal Reserve. Even the slightest reduction in borrowing costs should support the consumer purchasing power. Therefore, the rate cuts can act as a growth catalyst for Amazon.com, Inc. (NASDAQ:AMZN)’s e-commerce segment.

Moreover, the company is well-placed for long-term growth given its network effects, cost advantages, intangible assets, and switching costs. While Amazon.com, Inc. (NASDAQ:AMZN)’s business has intangible assets related to technology and branding, the company also has a cost advantage that is tied to purchasing power, logistics, and vertical integration.

Insider Monkey’s 2Q 2024 data revealed that 308 hedge funds held stakes in Amazon.com, Inc. (NASDAQ:AMZN), up from 302 in the preceding quarter.

Diamond Hill Capital, an investment management company, released its second-quarter 2024 investor letter and mentioned Amazon.com, Inc. (NASDAQ:AMZN). Here is what the fund said

“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.”