4. Amazon.com Inc. (NASDAQ:AMZN)
5-Year Revenue CAGR: 19.11%
Number of Hedge Fund Holders: 308
Amazon.com Inc. (NASDAQ:AMZN), or simply Amazon, is a leading online retailer and technology company that ranks high on our list of the 10 stocks with consistent growth to buy. The company offers cloud computing services through Amazon Web Services (AWS), which provides businesses with scalable computing power and storage solutions. Additionally, Amazon has ventured into digital streaming with services like Prime Video and Amazon Music, further diversifying its business model and enhancing customer experience. The company also specializes in online advertising and artificial intelligence (AI).
The company is strategically positioning itself for future growth by heavily investing in AI and expanding its core services. Amazon.com Inc. (NASDAQ:AMZN) has introduced a variety of AI-powered features, such as the shopping assistant Rufus for US mobile customers. The company has also launched Maestro for music playlist generation and improved search functionalities for Fire TV, indicating a comprehensive integration of AI across its platforms.
Amazon.com Inc. (NASDAQ:AMZN) has also expanded its geographical reach with initiatives like launching its Stores business in South Africa, offering same and next-day delivery. The company is also enhancing its healthcare services through Amazon Pharmacy’s RxPass program, which provides affordable access to essential medications for Prime members on Medicare. These moves reflect the company’s commitment to diversifying its offerings and tapping into new markets.
A key driver of Amazon.com’s (NASDAQ:AMZN) growth is its cloud computing business. In Q2 2024, the Amazon Web Services (AWS) segment saw a remarkable 19% year-over-year increase in sales. Growth was largely driven by the growing demand for cloud services as companies modernize their infrastructure and embrace AI technologies. Recently, the company introduced new AWS Graviton4-based compute instances that offer up to 30% better price performance compared to previous models, enhancing its appeal to businesses looking to optimize costs. Amazon.com Inc. (NASDAQ:AMZN) has also signed new AWS agreements with major organizations, including the Commonwealth Bank of Australia and Eli Lilly.
Financially, Amazon.com Inc. (NASDAQ:AMZN) has shown robust performance with a 10% increase in net sales to reach $148 billion in Q2 2024 compared to the same period last year. Notably, the AWS segment contributed $26.3 billion, highlighting its strength as a leading cloud service provider. With increasing demand for cloud services and AI capabilities, AWS continues to attract major clients and partnerships, reinforcing its position as a critical revenue driver.
In the last five years, Amazon has achieved a revenue growth rate of 19.11% annually, while its net income has grown at an average rate of 29.71% during the same period.
According to Insider Monkey’s database, Amazon.com Inc. (NASDAQ:AMZN) has attracted increased interest from institutional investors, with 308 hedge funds holding stakes in the company as of Q2 2024, up from 302 in Q1 2024.
