1. Amazon.com Inc. (NASDAQ:AMZN)
Volume: 28.588M million
Average Volume (3-Month): 42.624 million
Number of Hedge Fund Holders: 308
Amazon.com Inc. (NASDAQ:AMZN) specializes in e-commerce, online retail, streaming, and data cloud services. The e-commerce platform works in 20 countries and ships to over 100. Its global cloud platform operates under the name of Amazon Web Services (AWS).
It captures over 40% of the e-commerce market in the US. AWS increased its revenue from 18.8% year-over-year in Q2 2024. The overall company revenue in the second quarter was $147.98 billion, representing a 10.12% year-over-year improvement. However, there was a loss per share of $1.26 in this period.
AWS is projected to grow annually by 15% to 21% through 2028, making its performance a crucial factor in future profit forecasts.
Over the past months, the company partnered with AI startups like Anthropic and signed deals with the US government to test new AI models.
In July, it processed a new server design, similar to the ones produced by NVIDIA. It has invested in hardware for long, considering that its non-AI computing chip, Graviton, has been under development for almost a decade. More recent chips by the company include Trainium and Inferentia. On Prime Day, Amazon.com, Inc. (NASDAQ:AMZN) deployed a quarter million Graviton Chips and 80,000 custom AI chips to manage the surging activity on its platforms.
In August, it launched Room Decorator, which allows users to visualize various furniture pieces in their space. Commitment to such advancements is a testament to the company’s long-term growth, making it a top buzzing stock.
It should benefit from the early-September expected rate cuts by the US Federal Reserve. Even the slightest reduction in borrowing costs should support the consumer purchasing power.
Amazon.com, Inc. (NASDAQ:AMZN) is held by 308 hedge funds, of which the highest stake is valued at $8,460,561,806 by Fisher Asset Management.
Ithaka US Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:
“Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) has evolved from its early roots as an online bookstore to become one of the world’s largest eCommerce retailers. At the end of 2023 Amazon stood poised to capture ~40% of all US e-commerce sales, representing five times more share than the next closest competitor. In addition to eCommerce, Amazon Web Services (“AWS”) has become the market leader in outsourced cloud infrastructure. Further, Amazon Advertising is garnering significant share in digital advertising, particularly product placement ads, thanks to consumers beginning their product searches on Amazon’s site. Amazon’s stock appreciated on the back of stabilization of the company’s cloud computing segment and increased confidence management would be able to contain expenses and push operating margins above prior peaks in the near-to-medium term.”
While we acknowledge the growth potential of Amazon.com Inc. (NASDAQ:AMZN), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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