1. Amazon.com (NASDAQ:AMZN)
10-Year Net Income CAGR: 73.38%
TTM Net Income: $44.42 Billion
Number of Hedge Fund Investors: 308
Amazon.com (NASDAQ:AMZN) is a global e-commerce and cloud computing giant, offering a wide range of products and services. The company’s Amazon Web Services (AWS) is the market leader in cloud infrastructure, contributing significantly to the company’s profitability. Amazon.com’s (NASDAQ:AMZN) growth has been driven by its diverse business model, which includes e-commerce, logistics, entertainment (Prime Video), and artificial intelligence (Alexa). The company’s focus on customer satisfaction and innovation continues to fuel its dominance in multiple industries and is one of the largest companies in the world.
One of the key drivers of Amazon.com’s (NASDAQ:AMZN) growth is its leadership in the cloud computing market, with a 31% market share. The company’s cloud business is expected to continue to drive growth, driven by the increasing adoption of cloud computing and the growing demand for data storage and analytics. Additionally, Amazon.com’s (NASDAQ:AMZN) e-commerce business is expected to continue to benefit from the growing trend of online shopping, with the company’s strong logistics and supply chain capabilities allowing it to offer fast and reliable shipping to its customers.
Amazon’s innovative technologies, including its artificial intelligence (AI) and robotics capabilities, are also expected to drive growth and improve the company’s operating efficiency. The company’s AI-powered advertising platform, for example, has improved the effectiveness of its advertising business, while its robotics division has improved the efficiency of its logistics operations.
Furthermore, Amazon’s international expansion is expected to drive growth, with the company having lower penetration in certain regions. The company’s international segment has already started to show signs of improvement, with an operating margin of 5.63% in North America and 0.5% in international markets.
Amazon.com’s (NASDAQ:AMZN) strong fundamentals, diversified revenue streams, and innovative technologies make it an attractive investment opportunity. The company’s earnings are projected to increase by almost 48% in the current year. Industry analysts have reached a consensus on the stock’s Buy rating, with an average target price of $218.90 that suggests an 15.35% upside potential from its current levels.
While we acknowledge the potential of Amazon.com (NASDAQ:AMZN) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AZMN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
