5 Stocks Jumping On The Generative AI Wagon

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

Number of Hedge Fund Holders: 243

A total of 243 hedge funds held stakes in Amazon.com, Inc. (NASDAQ:AMZN) at the end of the first quarter, with a total stake value of $25.8 billion.

Amazon.com, Inc. (NASDAQ:AMZN) is another big tech company on our list. The company is using generative AI to summarize product reviews, while Amazon Web Services is also using generative AI to reinvent applications, create new customer experiences, increase productivity, and more.

Needham’s Laura Martin holds a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) shares as of June 28.

L1 Capital made the following comment about the company in its first-quarter 2023 investor letter:

“We commented in the December 2022 Quarterly Report “sentiment towards many high-quality technology and ecommerce related businesses like Amazon and Alphabet is negative. Capital flows and an over-emphasis on short-term challenges is driving share prices well below fair value, providing compelling investment opportunities for longer term investors”. In that report we outlined in detail why Amazon’s share price has been oversold and offered compelling value.

During the March 2023 quarter the share price of many large capitalisation technology companies increased significantly. The Fund has investments in Alphabet, Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft and their share prices increased 17%, 23% and 20% (in U.S. dollars), respectively. While we continue to see value in these privileged, high-quality businesses, share prices are no longer trading at materially oversold levels and we have selectively started to trim some of the Fund’s exposure.”

Follow Amazon Com Inc (NASDAQ:AMZN)