5 Best Edge Computing Stocks To Buy

2. Amazon.com, Inc. (NASDAQ:AMZN

Number of Hedge Fund Holders: 293

Amazon.com, Inc. (NASDAQ:AMZN)’s AWS edge services provide data processing, analysis, and storage in proximity to endpoints, enabling the deployment of APIs and tools outside AWS data centers. Amazon is one of the top edge computing market leaders. On February 26, AWS announced that it is set to invest $5 billion in cloud infrastructure projects in Mexico over the next 15 years. This initiative, part of a long-term commitment to Latin American markets, will establish the new AWS Mexico Region, providing enhanced access to advanced and secure cloud technologies for customers. The investment aligns with AWS’s commitment to offering advanced technologies like artificial intelligence and machine learning to customers. 

According to Insider Monkey’s fourth quarter database, 293 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN), compared to 286 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 42.2 million shares worth $6.4 billion. 

Polen Global Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN), which saw significant price appreciation throughout much of 2023, saw its share price increase materially in Q4 following the company’s Q3 2023 earnings report. We have yet to see the long-awaited re-acceleration in AWS (Amazon Web Services) revenue growth. However, in our estimation, the segment’s growth has likely bottomed, and we could see accelerating growth in 2024. Further, Amazon’s e-commerce business has gradually re-accelerated from 2022’s levels and, perhaps most importantly, the company’s margins and free cash flow have rebounded materially from last year. This rebound in margins and free cash flow at Amazon has been a key component of our long-term thesis for the business, and we expect the improvement in these metrics to continue into 2024 and beyond (though perhaps not linearly) as the company continues to optimize costs and capital expenditures. Our position in Amazon reflects our positive long-term expectations of the business, and it is currently our largest absolute weight in the Portfolio.”

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