5 Most Promising QQQ Stocks According to Hedge Funds

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

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN), is a multinational technology company operating online and physical stores where it sells its own products as well as allows third-party sellers to sell their products to consumers. It manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, and Ring, and develops and produces media content; and provides cloud computing services through Amazon Web Services platform.

Hedge funds really like the shares of Amazon.com, Inc. (NASDAQ:AMZN) as 286 out of the 910 hedge funds tracked by Insider Monkey held its shares with a total value of $38.9 billion, as of Q3 2023. Even though the company generates most of its revenue from ecommerce, the cloud platform of the company, which has been growing at a remarkable pace, is touted to be a potential “gold mine” in the recent future.

In its Polen Global Growth Q3 investor letter, Polen Capital, an investment management firm, made the following comments about Amazon.com, Inc. (NASDAQ:AMZN):

“Amazon continues to showcase its place as one of the most competitively advantaged companies in the world. The company has made significant progress in managing costs and better leveraging existing capacity, driving a strong recovery in its profitability. We think there’s additional room for improvement. AWS growth seems to be stabilizing even while management continues to work with clients to optimize their infrastructure spend. Roughly 90% of global IT spending remains on premise. We believe this will eventually flip, with most IT spending ultimately moving to the cloud over time. We think AWS will be a significant beneficiary of this transition. [. . .] At Amazon’s current price, we believe the company is well positioned to deliver a mid-teens or higher total shareholder return for our clients over the next five plus years without a Herculean effort from the business. It simply needs to continue executing on current businesses and growing into the capacity it built during and immediately after the pandemic.”