10 Stocks Hedge Funds Are Crazy About Right Now

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Investors In Q1 2024: 293

Amazon.com, Inc. (NASDAQ:AMZN) is an interesting stock. This is because while its fortunes are because of the highly lucrative and fast growing eCommerce market, the firm has used this growth to establish a commanding position in the enterprise computing market too. This means that Amazon.com, Inc. (NASDAQ:AMZN) can balance its eCommerce and enterprise computing businesses, and use AI to the benefit of both. The firm’s dominant market share in eCommerce insulates it from new entrants or competitors to provide it with a stable moat. Additionally, Amazon.com, Inc. (NASDAQ:AMZN)’s AWS platform designs its own chips and has integrated AI into customer offerings too, in order to adequately compete with offerings from Microsoft. Keeping an eye high growth industries, the firm’s satellite internet subsidiary Kuiper which plans to launch satellites soon can also provide it an entry into an attractive cash flow generating market currently dominated by SpaceX’s Starlink.

Ithaka Group mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2024 investor letter. Here is what the firm said:

Founded in 1994, Amazon has evolved from its early roots as an online bookstore to become one of the world’s largest eCommerce retailers. At the end of 2022 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 the company would be able to contain expenses and push operating margins above prior peaks in the near-to-medium term.