5 Best Forever Stocks to Buy Now

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

Number of Hedge Fund Holders: 252

Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle, Washington-based e-commerce giant that has ventured into cloud services, digital streaming, consumer electronics, and various other segments. The company has become a mainstay in the lives of the US consumer.

Amazon.com, Inc. (NASDAQ:AMZN) is gearing up for the holiday season as it intends to hire 150,000 employees across the US. Despite concerns related to retail spending and the growth of cloud services, JPMorgan highlighted Amazon.com, Inc. (NASDAQ:AMZN) as its top pick by a wide margin. The financial services firm thinks that Amazon.com, Inc. (NASDAQ:AMZN) will continue to experience YoY revenue growth, margin expansion, and moderation in capital expenditure in the coming years. These factors will provide a tailwind to the bottom line of the company. JPMorgan also anticipates Amazon Prime services to perform well in the upcoming quarters due to faster delivery times and better stocking levels.

Diamond Hill Capital Management also presented a long-term bullish outlook on Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN)’s shares underperformed as valuations of fast-growing companies continued to compress in Q2. Amazon’s growth investments over the past two years have pressured earnings as consumer demand has been weaker than anticipated. However, we believe the company will be able to grow into its infrastructure investments over time. These investments have obscured the magnitude of sustainable free cash flow as well as the attractive valuation of the business relative to peers.”

Hedge funds also consider Amazon.com, Inc. (NASDAQ:AMZN) as one of the best long-term stocks, as it is the second most popular company in Insider Monkey’s database of 895 elite funds as of Q2 2022.