5 Best American Stocks To Buy in 2022

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

Number of Hedge Fund Holders: 279

Multinational e-commerce and technology company Amazon.com, Inc. (NASDAQ:AMZN) leads our list of the best American stocks to buy in 2022. With a diverse interest in cloud computing, digital streaming, and artificial intelligence, Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle-based corporation with operations extending to over 100 countries.

Amazon.com, Inc. (NASDAQ:AMZN) reported $1116.44 billion in revenue and -$7.56 in GAAP EPS for its fiscal first quarter of 2022, falling short of analyst estimates. Earlier this April, Truist analyst Youssef Squali lowered his price target on Amazon.com, Inc. (NASDAQ:AMZN) to $3,500 from $4,000 but maintained a Buy rating on the shares of the company. Though he believes Amazon is in for a “rough patch” in Q2, Squali adds that strong growth in AWS and Advertising, as well as the prospects for inflationary pressure, keep him positive on the stock.

Arguably the most famous brand in the world, the investor sentiment for the stock has largely been positive as well. Among the hedge funds tracked by Insider Monkey, 279 funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) at the end of December 2021, up from 242 funds in the preceding quarter. Boykin Curry’s Eagle Capital Management is a significant shareholder of the company, with 677,828 shares worth $2.26 billion.

Here is what Giverny Capital Asset Management has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2022 investor letter:

Amazon clearly is one of the best companies on the planet, and probably most readers are receiving more packages from Amazon this year than last year. Amazon’s cloud computing business, AWS, is a world-beater and today generates most of the profit of the company. But there are a few things about Amazon that concern me.

Amazon generated $325 billion in revenue from its online store plus third-party seller services last year, yet generated only a 2% profit margin in retail. You don’t need to earn high margins to be a great
business. Costco is one of the best companies I’ve ever followed, and it earns only about a 3% margin. But Costco suppresses the margin so that it can offer customers exceptional values. Amazon offers exceptional convenience, but (in my experience) not always exceptional value. Costco also earns extremely steady, and high, returns on capital. Amazon’s returns on capital have trended down significantly recently…” (Click here to see the full text)

You can also take a look at 15 Best Technology Stocks To Buy Now and 12 Safe Stocks To Buy For Beginner Investors.

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