11 Most Promising Stocks According to Analysts

7. Amazon.com Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 339

Average Upside Potential as of April 23: 40.88%

Amazon.com Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores internationally. It operates through three segments: North America, International, and Amazon Web Services. It offers its products through its stores. These include merchandise and content purchased for resale, and products offered by third-party sellers.

Amazon recently unveiled its new AI model, called Nova Act. This is the company’s software development kit that takes actions in a web browser on the user’s behalf to automate routine tasks, such as filling forms or extracting data without human intervention. On April 22, Goldman Sachs reiterated the stock’s rating as Buy due to its secular growth themes across Consumer Internet and Cloud Computing. However, the firm lowered its price target to $220 from $255.

The company’s customers are moving to the cloud to use AI. Amazon’s own AI chips, Tranium 2, are 30% to 40% cheaper than its competitors, which helps it attract big clients like Anthropic. Amazon Bedrock is one of the company’s key AI services, which offers various AI models. Amazon Q, which is an AI assistant, is saving companies time and money and showcases practical AI use. AWS is heavily investing in data centers for AI and expects similar spending in 2025.

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.”