5 Stocks That Will Always Grow

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

Number of Hedge Fund Holders: 243

Amazon.com, Inc. (NASDAQ:AMZN) is the biggest ecommerce retailer. Out of every $5 spent on ecommerce, $2 go to Amazon.com, Inc. (NASDAQ:AMZN), according to data by Insider Intelligence. With a 40% market share, Amazon.com, Inc. (NASDAQ:AMZN) has almost no major rival.

Amazon.com, Inc. (NASDAQ:AMZN) also leads the Cloud industry with its AWS business, which is offering new products and services to allow businesses to develop and deploy applications for AI and machine learning. Amazon.com, Inc. (NASDAQ:AMZN) enjoys a market share of about 32%-34% in the Cloud market, while its competitor MSFT only has a 23% market share.

Mairs & Power Growth Fund made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2023 investor letter:

“Regarding stock selection in the first half, Nvidia (NVDA) was a massive outperformer, up 189.54%. Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft were also positive contributors, up 55.19% and 42.66%, respectively. All three stocks benefited from a renewed interest in growth stocks by investors in the first half of the year.

Amazon had an impressive first half of the year as well with growth out of its retail segment but slightly slower growth in its cloud business. Customers optimized workloads for existing capacity they were already paying for rather than adding incremental capacity in the current environment. We remain very excited about the opportunity for the company to reduce the labor needs of its retail segment through the use of technology and automation in the future.”