7 Best E-commerce Stocks To Buy According to Hedge Funds

Page 7 of 7

1. Amazon.com Inc (NASDAQ:AMZN)

Number of Hedge Fund Holders: 308

Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of the best e-commerce stocks to buy according to hedge funds. Amazon, functional in more than 20 countries, entered the e-commerce space in 1994 and now ships to more than 100 countries and regions. The company also specializes in cloud services, artificial intelligence, and digital streaming.

Amazon.com, its e-commerce platform is highly optimized allowing people to make purchases in less than 3 minutes and choose from more than 3 million available items such as electronics, clothing, home appliances, and furniture. During the first half of the year, Amazon.com Inc (NASDAQ:AMZN) delivered products to consumers at the fastest speeds possible. In addition to that, the company also increased product variety by bringing in more brands to their shelves.

In the second quarter of 2024, sales from online stores increased by 6% to reach $55.39 billion. Its expanding customer base and revenue growth can be attributed to its easy-to-use and optimized platform supported by rapid deliveries. So far this year, Amazon.com Inc (NASDAQ:AMZN) managed to deliver 5 billion items on the same day or the next, enhancing the overall experience for customers.

The company is working around the clock to ensure shoppers leave the Amazon online marketplace satisfied. Under some recent developments, the company introduced free restaurant deliveries for all prime members and an additional grocery subscription, allowing customers to save money on grocery items. As Amazon.com Inc (NASDAQ:AMZN) works to improve the customer shopping experience, the umbrella goal for the company is to reduce costs via efficiency gains. Overall, Amazon’s growth strategy coupled with its cost reduction initiatives, promises an increase in its global market share.

While we acknowledge the potential of e-commerce 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.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 7 of 7