5 Best Long-Term Growth Stocks To Invest In

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

Number of Hedge Fund Holders: 252

Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle, Washington-based e-commerce giant.

Despite the short-term weakness in the stock price, analysts consider Amazon.com, Inc. (NASDAQ:AMZN) as one of the best long-term stocks due to its growth potential. In the recent past, Amazon.com, Inc. (NASDAQ:AMZN) has diversified strongly in the cloud business through Amazon Web Services (AWS). Furthermore, the company has established its position as a digital streaming player with a strong advertising business. These segments are expected to generate significant income and free cash flow for the company as they are less cyclical than the e-commerce business.

Furthermore, experts believe that Amazon.com, Inc. (NASDAQ:AMZN) stock can continue to perform well during an adverse macroeconomic environment as a higher level of inventory and faster delivery times will become a driving force for an increased number of orders. This will play into effect during the holiday season.

Diamond Hill Capital Management discussed its stance on Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2022 investor letter. Here’s what the firm said:

“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.”

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