10 Best Stocks to Buy According to Billionaire Steve Cohen

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

Point72 Asset Management’s Q4 Stake: $917.68 million

Number of Hedge Fund Holders: 339

Amazon.com, Inc. (NASDAQ:AMZN) is a prominent technology company that runs the world’s largest e-commerce and cloud computing businesses. The company also offers digital streaming and artificial intelligence technology. Amazon.com, Inc.’s (NASDAQ:AMZN) e-commerce position affords it a significant competitive advantage over competitors, accounting for around 38% of total e-commerce sales in the United States.

Amazon.com, Inc. (NASDAQ:AMZN) revealed impressive results for the year 2024, with net sales up 11% year-over-year to $638.0 billion. Net sales for the fourth quarter rose by 10% to $187.8 billion, while net income nearly doubled to $59.2 billion from $30.4 billion in 2023.

On February 16, TD Cowen analyst John Blackledge reiterated his Buy rating on the AMZN stock and set a price target of $265. One of the reasons for Blackledge’s sentiments is AWS’s expected growth in generative AI income. The analyst predicts growth from $2.8 billion in 2024 to $56.3 billion by 2030. Blackledge also lauded Anthropic’s contribution to AWS’s GenAI revenue stream, which was projected to account for half of total GenAI revenue by 2024.

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.

While we acknowledge the potential for AMZN as an investment, 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%.  If you are looking for an AI stock that is more promising than AMZN but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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