10 Best Magic Formula Stocks for 2025

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

Number of Hedge Fund Holders: 339

Gotham Asset Management’s Q4 2024 Stake: $76.7 million

Amazon.com, Inc. (NASDAQ:AMZN) is a major technology corporation that operates the world’s largest e-commerce and cloud computing companies. The firm also provides digital streaming and artificial intelligence technologies. Amazon.com, Inc.’s (NASDAQ:AMZN) e-commerce position gives it a considerable competitive edge over competitors, as it accounts for roughly 38% of all e-commerce sales in the US.

On February 16, TD Cowen analyst John Blackledge maintained his Buy rating on the company’s shares and set a price objective of $265. One of the grounds for Blackledge’s sentiments is AWS’s projected increase in generative AI income. The analyst stated that he expects growth from $2.8 billion in 2024 to $56.3 billion by 2030. Blackledge also praised Anthropic’s contribution to AWS’s GenAI income stream, which is expected to account for half of AWS’s GenAI revenue by 2024. He also stated that, depending on various scenarios, AWS’s GenAI income from Anthropic may range from $7 billion to $17 billion by 2027.

Ariel Appreciation Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:

“During the quarter, we initiated three new investments, each in companies we have followed closely for a considerable time. At various points, we viewed them as missed opportunities; however, our experience with Mr. Market has taught us that patience often creates inevitable entry points. This quarter, some exciting opportunities presented themselves. The three investments are Amazon.com, Inc. (NASDAQ:AMZN), Diageo (NYSE: DEO), and Uber (NASDAQ: UBER). We will discuss each in detail below.

Amazon is one of the most widely followed companies in the world. While the “Magnificent 7” (of which Amazon is a key member) is often seen as a runaway freight train, we were able to purchase Amazon shares at prices last seen in 2021—three years ago. How is this possible if the “Mag7″ has been so dominant? We believe it largely reflects the increasing prevalence of narratives driving market sentiment…” (Click here to read the full text)