5 Best Robinhood Stocks to Buy According To Hedge Funds

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 with interests in cloud computing, consumer electronics, and digital streaming.

Companies are increasingly adopting the cloud as they are looking to reduce the cost of owning technology infrastructure. Amazon.com, Inc.’s (NASDAQ:AMZN) e-commerce sales in the US reached $78.8 billion in the third quarter of 2022, reflecting a YoY growth of 20%. Furthermore, Amazon Web Services recorded $20.5 billion in net sales in Q3, an increase of 27% from the previous quarter. With a margin of 30% and a 12-month trailing operating income of $22.9 billion, the segment is extremely profitable. Meanwhile, Amazon.com, Inc.’s (NASDAQ:AMZN) advertising business is also expanding as the company is leveraging Marketplace Ads on its platform. The company’s strong positioning in the market has made it one of the best Robinhood stocks to buy, according to hedge funds.

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 12 Best Robotics Stocks To Buy According to Hedge Funds and the 12 Best High Yield Dividend Stocks To Buy.

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