10 Stocks on Analysts’ Radar Amid Tariff Turbulence

1. Amazon.com (NASDAQ:AMZN)

Number of Hedge Fund Investors: 339

Scott Devitt from Wedbush said in a latest program on Schwab Network that Amazon.com (NASDAQ:AMZN) might face headwinds in the short term, but the stock is poised for growth for the long term:

It’s about duration. Really, you know, on a shorter-term basis, Amazon is not in such a secular growth stage within its business that it’s going to overcome a slowdown in consumer spending. So, should the consumer continue to slow, as it’s already begun to do in the U.S. market, that’ll contribute to a deceleration in Amazon’s core business. There’s no really stopping that. When you look at it from an intermediate to longer-term basis, Amazon’s retail business continues to gain share of total retail on a global basis, excluding China. The advertising business is growing, mid-teens toward 20%, and AWS is a hundred-billion-dollar revenue business, also growing, depending on the quarter and comps, mid-teens to 20%. Margins are rising and should grow 20% CAGR for the next five years, barring an unforeseen recession. So, the setup for the stock is very good intermediate to long-term. Short-term, who knows?

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 (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. 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.

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

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