12 Best Streaming Service Stocks to Buy According to Analysts

5) Amazon.com, Inc. (NASDAQ:AMZN)

Average Upside Potential: 18%

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) is engaged in the retail sale of consumer products, advertising, and subscription services. The company caters to the streaming service business through Amazon Prime Video. The company delivered at its fastest speeds ever for Prime members in 2024. It delivered over 65% more items to US Prime members on the same day or overnight than in Q4 2023. Amazon.com, Inc. (NASDAQ:AMZN) was able to draw 50 million worldwide viewers to Red One in its first 4 days and made it Amazon MGM Studios’ most-watched film debut ever on Prime Video.

Amazon.com, Inc. (NASDAQ:AMZN)’s subscription services (including Prime Video) and third-party seller services are expected to continue to contribute to the company’s diversified revenue streams. Its focus on enhancing its content offerings and improving the experience for third-party sellers can support growth in such areas. Amazon.com, Inc. (NASDAQ:AMZN)’s Prime membership has been encountering strong growth, fueled by enhanced benefits including unlimited free shipping and exclusive events.

Notably, the company rolled out a new fuel discount benefit, which further increased the membership’s attractiveness. Amazon.com, Inc. (NASDAQ:AMZN)’s strong pursuit of better selection, price, and delivery speed continues to drive accelerated growth in Prime membership. Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Amazon.com, Inc. (NASDAQ:AMZN) is a renowned online retailer and leader in cloud computing. The company’s Amazon Web Services (AWS) division offers utility-scale cloud solutions that support corporate America’s digital transition. During the quarter, Amazon’s shares contributed to performance as the company reported better-than-expected fiscal third-quarter results, with revenues and earnings beating analyst estimates. Operating margins expanded to 11%, driven by efficiency gains in logistics and robust AWS performance. Notably, AWS revenue growth accelerated during the quarter, along with recording its highest-ever operating margin of 38.1%, driven by easing cloud cost optimizations, renewed workload migrations, and an increasing contribution from AI workloads. On their earnings call, management highlighted plans to increase capital expenditures to enhance their technology infrastructure, catering to the surging demand for AI-driven computing.”