10 Best Stocks To Invest In According to Billionaires

3. Amazon.com Inc. (NASDAQ:AMZN)

Number of Billionaire Investors: 33

Amazon.com Inc. (NASDAQ:AMZN) is a tech giant specializing in e-commerce, online retail, streaming, and cloud services. The company is also advancing in the AI space, partnering with startups like Anthropic and securing deals with the U.S. government to test new AI models.

Evercore ISI recently raised its price target for Amazon.com Inc. (NASDAQ:AMZN) shares from $225 to $240, maintaining an Outperform rating. This new target is based on a 35x multiple of projected 2026 earnings per share of around $7.00 and a 25x multiple of expected 2026 free cash flow of approximately $100 billion. The tech giant is focusing on monetizing its content through advertising, with CEO Andy Jassy highlighting the ad business, now at a $50 billion revenue run rate, during the Q2 earnings call—second only to Amazon Web Services (AWS). Evercore ISI also estimates Amazon Prime Video (APV) could contribute $1.8 billion to $3.3 billion in operating income by 2025, potentially boosting total 2024 operating income by 3% to 5%.

As of the second quarter of 2024, 33 billionaires in Insider Monkey’s database held stakes in Amazon.com Inc. (NASDAQ:AMZN).

Diamond Hill Select Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:

“Among our top individual contributors in Q2 were Amazon.com, Inc. (NASDAQ:AMZN), Texas Instruments and Mr. Cooper Group. Internet retail and cloud infrastructure company Amazon is benefiting from strong profitability, particularly in its Amazon Web Services (AWS) business. Shares also received a boost amid growing optimism around the demand for AWS as Amazon customers’ investments in generative AI projects continue growing.”