5 Robinhood Stocks with Biggest Upside

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

Number of Hedge Fund Holders: 278

Amazon.com, Inc. (NASDAQ:AMZN) has a huge upside potential amid its AI capabilities in the Cloud computing industry. AWS is offering several AI-related features for developers to design, build and deploy AI applications. Amazon.com, Inc. (NASDAQ:AMZN) is also a leader in the ecommerce market that is alive and thriving. This makes several top analysts believe that Amazon.com, Inc. (NASDAQ:AMZN) has a lot of room to grow in the coming months and years.

Hedge funds also agree with this bullish thesis. As of the end of the first quarter of 2023, 278 hedge funds reported owning stakes in Amazon.com, Inc. (NASDAQ:AMZN), up from 243 funds in the previous 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.”