5 NASDAQ Stocks with Biggest Upside

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

Number of Hedge Fund Holders: 278

Analysts believe Amazon.com, Inc. (NASDAQ:AMZN) is one of the top tech stocks with huge upside potential. Morgan Stanley recently said that Amazon.com, Inc. (NASDAQ:AMZN)’s upcoming event regarding AWS is a good opportunity for the company to create a buzz around its generative AI offerings. Analysts are also hopeful that Prime Day event this year would act as a catalyst for Amazon.com, Inc. (NASDAQ:AMZN).

Insider Monkey’s database of 910 hedge funds shows that 278 hedge funds had stakes in Amazon.com, Inc. (NASDAQ:AMZN) at the end of the June quarter.

RiverPark Large Growth Fund made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2023 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN): Amazon was a top contributor in the second quarter, in reaction to a solid 1Q23 earnings report. The company generated $127 billion of revenue (2% ahead of expectations) and nearly $5 billion of operating income (57% better than expectations) driven by rebounding online sales and strong incremental gross margins. During the company’s earnings conference call, Amazon management pointed to easing inflationary pressures, higher productivity gains, and lower expected capital spending for the remainder of the year. The only negative in the quarter was slowing AWS revenue growth, which we believe will rebound later in the year.

With its ability to continue its market share gains in three leading businesses (e-commerce, web services and online advertising), plus a multi-year operating margin expansion opportunity (from improved e-commerce margins and greater contribution from the faster growing, higher margin AWS and advertising segments), we believe Amazon remains one of the best-positioned global growth companies in the world. AMZN shares trade at a 10-year trough EPS multiple, despite what we believe to be currently depressed margins and earnings.”