5 Best Bear Market Stocks To Buy Now

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

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle, Washington-based e-commerce giant providing cloud computing platform services through Amazon Web Services (AWS). Furthermore, the tech giant has also diversified into artificial intelligence, digital streaming, and online advertising.

Amazon.com, Inc. (NASDAQ:AMZN) announced on November 23 that it intends to invest $1 billion in making 12 to 15 movies annually for theatrical release. To streamline its cost and combat the impact of rising inflation, Amazon.com, Inc. (NASDAQ:AMZN) is working on lowering its employee headcount and making operations more efficient. Furthermore, hiring within the AWS segment is also on hold. In an update issued to investors on November 15, research firm MoffettNathanson termed the second-biggest retail company in the world a solid market share gainer and a winner in the e-commerce universe. The company’s solid business fundamentals make it one of the best bear market stocks to buy now.

Here’s what Baron Funds said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest e-commerce retailer and cloud services provider. Shares of Amazon increased 6% in the quarter after the company reported strong results with 7% year-over-year revenue growth driven by 33% growth in Amazon Web Services (AWS), Amazon’s leading cloud computing service, while guiding for an acceleration in third quarter revenue growth, which is expected to be between 13% and 17% year-overyear. Amazon’s share of e-commerce is roughly 40%, far ahead of competition, yet domestic e-commerce accounted for only 14.5% of total retail sales (according to U.S. Census Bureau data for the second quarter of 2022), implying durable growth opportunities ahead. Internationally, the opportunity remains large as Amazon still has less than a 2% market share of international retail spending. Its advertising share is also only 3% and growing, underpinned by the structural closed-loop systems it enables (merchants know exactly whether their ad dollars resulted in a purchase since they are all done on the Amazon platform), which enables accurate targeting and measurement. Lastly, AWS has a good runway for growth as the industry still represents only 9.5% out of the $4.3 trillion of global IT spending according to Gartner. Areas such as logistics and health care present additional optionality.”

You can also take a peek at the 15 Best Dividend Stocks For Passive Income and the 12 Safest Stocks To Invest In.

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