20 Trending AI Stocks on Latest Analyst Ratings and News

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

Number of Hedge Fund Holders: 308    

Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. Even as the company increases capital expenditures related to AI, it continues to deliver on a range of financial metrics in earnings, soothing investor concerns around ROI. The firm reported over $100 billion in operating income in the second quarter, with operating margin reaching nearly 10%. The revenue of the firm during this time was almost $150 billion, with nearly 19% growth in Amazon Web Services. AWS contributed almost 70% to the operating income. The business model of the firm, with large stakes in the retail, cloud, and advertising markets, will likely deliver 10% annual top line growth for the next three years.

Amazon.com, Inc. (NASDAQ:AMZN) is viewed with bullish sentiment on Wall Street. JMP Securities recently raised the price target on the stock to $265 from $245 and kept an Outperform rating on the shares, underlining that higher-than-consensus advertising estimates released by the firm seemed reasonable given the vertically integrated full-stack advertising platform, which can serve upper funnel down to lower funnel advertising solutions.