10 Stocks Everyone’s Talking About as Trump Softens His Tone on China

Page 5 of 5

1. Amazon.com Inc (NASDAQ:AMZN)

Number of Hedge Funds Investors: 286

Malcolm Ethridge, managing partner at Capital Area Planning Group, said in a latest program on CNBC that he’s buying Amazon.com Inc (NASDAQ:AMZN) because the company’s fundamental bull thesis is intact:

“I like to buy strong companies at moments of temporary weakness that don’t necessarily make any sense. Nothing fundamentally has changed about Amazon. For those that didn’t really like the fact that their capex was 80 billion to 100 billion, well now you get to buy all the growth that that capex buys at a discount. Right, so you’re looking at something like 18 to 20% off between the two names. To Stephanie’s point, she led off with, I don’t have to buy the second or third best player in a sector anymore at these kinds of discounts. I can go buy the best name in the space, which is Microsoft or Amazon. And so that’s why I’ve been adding to those names in some of those MAG 7 names, especially the ones that aren’t negatively impacted by the consumer.”

Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:

“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. In Consumer Discretionary, Amazon.com, Inc. (NASDAQ:AMZN) reported strong third-quarter results. Revenue increased by double digits, led by growth in advertising and Al products, while the company’s operating margins also hit an all-time high of 11%. The key reasons for the higher margins were that its international e-commerce operations turned profitable, and there was faster growth in its high-margin cloud-computing business.”

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN), our conviction lies in the belief that under the radar 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 that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 9 AI Stocks In Focus: Tariffs and Key Updates and the 11 AI News Updates on Wall Street’s Radar,

Page 5 of 5