10 Best Information Technology Services Stocks to Buy

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

Number of Hedge Fund Holders: 302

Amazon.com, Inc. (NASDAQ:AMZN) is a leading American multinational technology company with a diverse portfolio that includes e-commerce, cloud computing through Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence.

On June 14, JPMorgan reaffirmed its Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN), setting a price target of $240. This came after an extensive analysis of the U.S. e-commerce landscape, which assessed category penetration and Amazon’s market share. The findings suggest that Amazon is on course to surpass Walmart as the largest U.S. retailer by 2024, with e-commerce penetration potentially exceeding 40% in the long term.

Moreover, Amazon.com, Inc. (NASDAQ:AMZN) is rapidly becoming a powerhouse in AI, propelled by its AWS division, which reported operating margins of over 37% in the first quarter. AWS has maintained operating margins above 30% for five consecutive quarters. Additionally, Amazon’s first-quarter revenue saw a 12.5% year-over-year increase, while its adjusted EPS more than tripled.

Research by Insider Monkey for the March quarter of 2024 showed that 302 of the 919 hedge funds tracked held stakes in Amazon.com, Inc. (NASDAQ:AMZN). The largest hedge fund investor was Ken Fisher’s Fisher Asset Management, with a stake valued at $7.67 billion.

While Amazon.com, Inc. (NASDAQ:AMZN) ranks as the favorite hedge fund information technology services stock pick, 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: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and 10 Best of Breed Stocks to Buy For The Third Quarter of 2024 According to Bank of America.

Disclosure: None.

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