10 Best Stocks to Buy According to Billionaire Chris Rokos

5. Amazon.com, Inc. (NASDAQ:AMZN)

Rokos Capital Management’s Stake as of Q4 2024: $216.67 million

Number of Hedge Fund Holders: 339

Amazon.com, Inc. (NASDAQ:AMZN) is a leading technology company that operates the world’s largest e-commerce and cloud computing businesses. The company also provides digital streaming and AI technology. Amazon.com, Inc.’s (NASDAQ:AMZN) e-commerce position gives it a considerable competitive edge over competitors, as it accounts for around 38% of total e-commerce sales in the US. The company’s capex for 2025 is projected to be approximately $100 billion, most of which will go toward AI. The company also stated that lower AI inference expenses will drive up AI infrastructure expenditure.

BMO Capital lowered its price target for Amazon.com, Inc. (NASDAQ:AMZN) to $235 from $280, while maintaining an Outperform rating on the stock. Brian J. Pitz of BMO Capital identified many factors that influenced the revised price target. He stated that, while demand for Amazon Web Services (AWS) remains high, it has softened in March. The analyst cited the unpredictable macroeconomic climate and limited visibility for the second half of 2025 to be significant grounds for concern. In light of these developments, BMO Capital has reduced its AWS growth predictions to 19% for the first quarter of 2025 and 18% for the whole year, down from earlier estimates of 20% for both.

Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:

“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. In Consumer Discretionary, Amazon.com, Inc. (NASDAQ:AMZN) reported strong third-quarter results. Revenue increased by double digits, led by growth in advertising and Al products, while the company’s operating margins also hit an all-time high of 11%. The key reasons for the higher margins were that its international e-commerce operations turned profitable, and there was faster growth in its high-margin cloud-computing business.”