1. Amazon.com Inc. (NASDAQ:AMZN)
No of Hedge Fund Holders: 339
Amazon.com Inc. (NASDAQ:AMZN) is a global e-commerce and technology company offering diverse products and services across its online and physical stores. Operating through three key segments—North America, International, and Amazon Web Services (AWS)—the company focuses on selection, price, and convenience to serve consumers worldwide.
Amazon.com Inc. (NASDAQ:AMZN) continues expanding its AI and entertainment footprint with two major developments in February 2025. The company announced a significant generative AI upgrade to Alexa, enhancing its ability to handle multiple sequential prompts and execute complex tasks. This move is aimed at improving user engagement and driving paid subscriptions. Additionally, it secured full creative control of the James Bond franchise, taking over from long-time custodians Michael G Wilson and Barbara Broccoli. This acquisition positions Amazon Prime for exclusive Bond-related content, including potential new films and TV spin-offs.
Amazon.com Inc. (NASDAQ:AMZN) delivered strong full-year 2024 results, with net sales rising 11% YoY to $638 billion. This was driven by solid growth across its North America (+10%), International (+9%), and AWS (+19%) segments. Operating income nearly doubled to $68.6 billion, up from $36.9 billion in 2023, reflecting improved profitability across all segments. Net income surged to $59.2 billion, compared to $30.4 billion in the prior year. Operating cash flow grew 36% to $115.9 billion, while free cash flow improved to $38.2 billion.
On February 7, 2025, Ronald Josey of Citigroup maintained his “Strong Buy” rating on Amazon.com Inc. (NASDAQ:AMZN) while slightly lowering the price target from $275 to $273.
Overall, Amazon.com Inc. (NASDAQ:AMZN) ranks first on our list of the 10 Good Stocks to Buy According to Hedge Funds. 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. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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