1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Billionaires: 40
Billionaire Holdings: 33,043,036,466
Amazon.com, Inc. (NASDAQ:AMZN) is a renowned American technology firm that sells a wide range of products, from electronics to books, on its vast e-commerce platform. The business has expanded to become the biggest online retailer in the world and a pioneer in cloud computing due to Amazon Web Services.
One important component of its company is its delivery services, which include rapid shipping choices such as Amazon Prime. It allows customers to receive their goods swiftly through same-day delivery, one-day delivery, and two-day delivery services. Thus, Amazon.com, Inc. (NASDAQ:AMZN) is the Best Delivery Stock.
Amazon.com, Inc. (NASDAQ:AMZN) reported $187.8 billion in Q4 2024, a 10% year-over-year growth in revenue, and $21.2 billion in operating income, a 61% YoY gain. Amazon Web Services boosted its annualized revenue run rate by 19% year on year, to $115 billion, due to strong demand for both generative and non-generative AI services. At $17.3 billion, advertising revenue grew 18% year over year, helping to generate a yearly run rate of $69 billion.
Amazon.com, Inc. (NASDAQ:AMZN) delivered over 9 billion units the same or next day worldwide and grew its same-day delivery sites by more than 60%, now reaching 140 metro areas. The expansion of Prime membership was driven by new fuel discounts, exclusive events, and expanded advantages like unlimited free delivery.
Polen Focus Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Consistent with our thesis, Amazon.com, Inc. (NASDAQ:AMZN) has continued to see operating margins expand, hitting 11% in the most recent quarter after bottoming around 2% at the end of 2022. This march higher in margins stems from a mix shift towards faster-growing, higher-margin segments like Amazon Web Services (AWS) and Advertising, combined with better fulfillment efficiency in the e commerce business following significant investments in recent years. Further, speaking to its runway ahead, CEO Andy Jassy noted the company’s AI business is a “multi-billion-dollar business growing triple digits,” 3x faster than AWS did itself at the same stage in its evolution. While we trimmed our position during the quarter, Amazon remains our largest position, as we expect approximately 20% earnings growth over the next five years driven by a mix of solid organic revenue growth and continued margin expansion.
We trimmed our positions in UnitedHealth Group, Amazon, ServiceNow, and Gartner during the quarter. Amazon continues to deliver excellent results with all businesses growing robustly and profit margins expanding. When we significantly increased Amazon’s weighting in the portfolio about two years ago, its operating margins were at 2%, and we anticipated they would expand to the mid-teens over the next few years. Today, they stand at 11%, and we expect them to expand closer to the high-teen level in the next few years. The earnings growth potential from here is roughly 20% per annum based on our expectation for revenue and profit margin expansion. While this still represents excellent potential and Amazon remains our largest position, we no longer feel it merits a maximum position size.”
Overall, Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of the 10 Best Delivery Stocks to Buy According to Billionaires. While we acknowledge the potential for AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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 30 Best Stocks to Buy Now According to Billionaires.
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