1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) is a global e-commerce and cloud computing giant. It operates the largest online retail platform, offering a wide range of products, including electronics, clothing, and groceries, along with digital services such as Amazon Prime, Amazon Music, and Amazon Video. The company also leads in cloud computing through Amazon Web Services (AWS), which provides infrastructure and services for businesses worldwide. AMZN has expanded into logistics, artificial intelligence, and consumer electronics, continuously innovating across multiple sectors.
Amazon.com, Inc. (NASDAQ:AMZN) reported an impressive Q4 2024, achieving $187.8 billion in revenue, a 10% increase compared to the prior year, despite facing a $700 million foreign exchange headwind. Operating income soared to a record $21.2 billion, marking a 61% year-over-year growth, while trailing 12-month free cash flow adjusted for equipment finance leases reached $36.2 billion. The North American segment recorded 10% revenue growth, and the International segment grew 9% YoY when adjusted for currency impacts. AWS maintained its strong momentum with 19% YoY growth, reaching a $115 billion annualized revenue run rate. In the retail segment, the company expanded its offerings to include premium brands, with third-party sellers contributing a record 61% of sold items.
Operational advancements also played a key role, with Amazon.com, Inc. (NASDAQ:AMZN) enhancing its delivery capabilities by expanding same-day delivery sites by over 60% in 2024. These sites now cover more than 140 metro areas, enabling the delivery of over 9 billion units on a same or next-day basis globally. In its advertising segment, AMZN achieved $17.3 billion in Q4 revenue, reflecting an 18% YoY increase and bringing its annual run rate to $69 billion – more than doubling from $29 billion four years prior. The company is also doubling down on AI innovation, with roughly 1,000 generative AI applications either developed or in progress. Looking ahead, management intends to continue investing in fulfillment and transportation network expansion, same-day delivery facilities, robotics, and automation, aiming to further enhance delivery efficiency and reduce costs.
Overall, Amazon.com, Inc. (NASDAQ:AMZN) ranks 1st on our list of the 10 stocks that members of Congress own. While we acknowledge the potential of AMZN as an investment, 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 AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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