12 Safest Stocks to Buy According to Hedge Funds

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286   

Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. This company offers a robust investment case for several reasons. To begin with, the financial performance, as depicted in the report for the third quarter of 2024, shows a compelling investment opportunity. For instance, net income increased to $15.3 billion or $1.43 per diluted share, compared with $9.9 billion, or $0.94 per diluted share, in the third quarter of the prior year. Additionally, operating cash flow increased 57% to $112.7 billion for the trailing twelve months, compared with $71.7 billion for the trailing twelve months ended in September of the prior year. This demonstrates the company’s improved cash generation and financial health over the period. Moreover, the company has started a strategic collaboration with Databricks to accelerate the development of custom models built with Databricks Mosaic AI on AWS. Databricks will also use AWS Trainium chips to help customers improve price performance when building generative AI applications.

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Amazon.com, Inc. (NASDAQ:AMZN) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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