1. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 308
Amazon.com Inc. (NASDAQ:AMZN) is a major American technology company known for its extensive e-commerce platform, which offers a wide variety of products ranging from books to electronics. The company has grown to become the world’s largest online retailer and a leader in cloud computing through its Amazon Web Services (AWS). A key aspect of its business is its delivery services, which include fast shipping options like Amazon Prime, allowing members to receive their orders quickly through same-day delivery, one-day delivery, and two-day delivery service options.
The company’s innovative logistics network continues to redefine online shopping and delivery experiences globally. At the end of July, Amazon.com Inc. (NASDAQ:AMZN) announced a remarkable achievement in its delivery service, reporting that over 5 billion items have already been delivered the same or next day globally this year, marking a 30% increase from the previous year. This record speed not only benefits Prime members by allowing them to receive products faster but also supports small and medium-sized businesses, with many of these deliveries made on behalf of independent sellers using the company’s Fulfillment by Amazon service. Since the launch of Prime in 2005, the selection of items eligible for free Prime shipping has expanded from just one million to over 300 million, with tens of millions available for Same-Day or One-Day Delivery. This means that Prime members now enjoy 20 times more options delivered much quicker than before, enhancing the overall value of their membership.
In November 2023, The Wall Street Journal reported that Amazon.com Inc. (NASDAQ:AMZN) surpassed UPS in parcel volume in 2022 and surpassed FedEx in 2020, with expectations that this lead will continue to grow based on internal Amazon data.
Amazon.com Inc. (NASDAQ:AMZN) is actively enhancing its services to provide even greater value to its Prime members, which makes it an attractive delivery stock to consider.
In the first half of 2024, the company achieved record delivery speeds and this rapid delivery is supported by an expanded selection of products, including popular brands like Aéropostale and Kiehl’s. Additionally, Amazon.com Inc. (NASDAQ:AMZN) now offers US Prime members a Grubhub+ membership, valued at $120 a year, and has launched grocery delivery subscriptions that allow unlimited deliveries for a low monthly fee when shopping at the company’s fresh stores in the US and the UK.
Moreover, Amazon.com Inc. (NASDAQ:AMZN) is leveraging advanced technology, including AI-powered features like the shopping assistant Rufus, to improve customer experience. The company has also expanded its pharmacy services, providing Medicare members access to essential medications for just $5 a month.
These strategic initiatives combined with the company’s focus on speed, selection, and added value position Amazon.com Inc. (NASDAQ:AMZN) as a strong contender in the delivery market. According to Insider Monkey’s database, AMZN has gained significant interest from institutional investors, with the number of hedge fund holders increasing to 308 in Q2 2024, up from 302 in the previous quarter.
Overall, AMZN ranks first among the 7 best delivery stocks to invest in now. While we acknowledge the potential of delivery companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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