1. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Investors: 308
In a recent Mad Money episode, Jim Cramer explained that after Amazon.com Inc. (NASDAQ:AMZN)’s recent earnings report, which faced criticism due to weaker consumer sales and concerns about potential declines, the stock dropped to around $160. However, Cramer noted that Amazon.com Inc. (NASDAQ:AMZN) has since rebounded, suggesting that the initial negative forecasts were too pessimistic.
“When Amazon reported three weeks ago, the quarter was criticized, with sellers focusing on weaker consumer sales and management’s comments on potential declines. Critics viewed concerns over spending impacts from the news cycle as an excuse. Despite this, the stock, which fell to around $160, has rebounded, reflecting that the negative forecasts were premature.
Amazon is integral to my daily life, from receiving packages to using services like Instagram, Microsoft Outlook, and YouTube TV. Amazon’s ability to lower costs and improve efficiency is unmatched. The company continues to innovate and is not stationary. If Amazon dominates the essentials market, it could challenge local supermarkets and drugstores, given its scale and convenience. Additionally, Amazon Web Services remains a significant revenue driver and continues to strengthen.
Despite some recent tough shopping days, Amazon’s stock is worth buying into weakness. Tech giants often rebound from downturns, and buying them during these periods can be advantageous. While not as spectacular as Prime Day deals, it remains a strong opportunity.”
Amazon.com Inc. (NASDAQ:AMZN) achieved a 15% increase in revenue and a 33% rise in net income, reflecting successful business strategies and operational improvements. AWS plays a key role in Amazon.com Inc. (NASDAQ:AMZN)’s growth, with its revenue increase underscoring its leading position in cloud computing and potential for further expansion.
Amazon.com Inc. (NASDAQ:AMZN)’s advancements in e-commerce and logistics, such as automation and new delivery solutions, help it capture more of the online retail market and enhance customer experience. Amazon.com Inc. (NASDAQ:AMZN)’s focus on sustainability and climate goals also boosts its reputation and operational efficiency.
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 timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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