10 Best Performing Dow Stocks in 2024

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

Year to date Share Price Gain: 26.71%

Number of Hedge Fund Holders: 308

Amazon.com, Inc. (NASDAQ:AMZN) demonstrated exceptional financial performance in Q2 2024, significantly exceeding market expectations with an earnings per share (EPS) of $1.26 compared to forecasts of $1.03. The company reported revenues of $148 billion, marking an 11% year-over-year increase, and a remarkable operating income of $14.7 billion, up 91% year-over-year. These robust results reflect Amazon.com, Inc. (NASDAQ:AMZN) ability to navigate economic challenges and leverage growth opportunities effectively.

One of the standout highlights from the earnings release was the dramatic increase in free cash flow, which surged 664% to $51.4 billion over the trailing twelve months. This metric underscores Amazon’s operational efficiency and cash-generating capabilities, allowing for strategic reinvestment in core areas such as AWS and AI-driven services. The AWS segment showcased continued strength, with revenue growth accelerating from 17.2% in Q1 to 18.8% in Q2, driven by trends in cloud migration and increasing demand for AI capabilities.

Furthermore, Amazon.com, Inc. (NASDAQ:AMZN) advertising business is on an upward trajectory, generating over $50 billion in revenue in the last year. The ongoing improvements in ad technology and the integration of AI in ad services present significant growth prospects, indicating that Amazon is well-positioned to capitalize on this market.

The company’s strategic investments in generative AI and machine learning are also promising. The introduction of products like Amazon SageMaker and Bedrock positions Amazon.com, Inc. (NASDAQ:AMZN) as a leader in the cloud computing landscape, catering to a growing number of developers and businesses eager to leverage AI technologies.

Investor sentiment remains strong, evidenced by a year-to-date share price gain of 26.71% and an increase in hedge fund holders, which rose to 308 as of Q2 2024, up from 302 in the previous quarter. These factors collectively create a compelling investment narrative for Amazon.com, Inc. (NASDAQ:AMZN), making it a standout performer in the Dow, particularly as it continues to innovate and expand its market presence across diverse sectors.