12 Stocks Most Held by Hedge Funds

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

Number of Hedge Fund Investors: 286

Amazon.com, Inc. (NASDAQ:AMZN) is a leading global technology company, initially known for its online retail platform. The company has expanded into a wide array of sectors, including cloud computing, digital streaming, advertising, and artificial intelligence.

Amazon.com, Inc. (NASDAQ:AMZN) is focusing on improving customer experience and operational efficiency. In the retail segment, the company has introduced several initiatives to enhance customer satisfaction, with the recent addition of unlimited grocery delivery from Whole Foods Market, Amazon Fresh, and other grocery partners for $9.99 a month, along with fuel savings of $0.10 a gallon at designated stations in the US. Additionally, Amazon.com, Inc. (NASDAQ:AMZN) is focusing on reducing delivery times and costs. The company has re-architected its fulfillment network to spread inventory more efficiently across regional centers. The company is expanding its Prime services, which offer a range of benefits like fast and free delivery, streaming services, and exclusive deals.

Amazon.com, Inc. (NASDAQ:AMZN) is also investing in new advertising offerings, such as Prime Video advertising and Generative AI-powered creative tools, which are expected to drive further growth. For consumers, AI-powered shopping assistants like Rufus have been expanded to multiple countries, which enhances the shopping experience with personalized recommendations and real-time pricing information. Additionally, Amazon.com, Inc. (NASDAQ:AMZN) is rearchitecting the brain of Alexa with new foundation models and integrating AI into its devices, such as the new Kindle Scribe. In Amazon Web Services (AWS), the company has released nearly twice as many machine learning and Generative AI features as its competitors in the past 18 months.

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) to grow, 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.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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