7 Best Stocks for Beginners with Little Money According to Analysts

3. Amazon.com Inc (NASDAQ:AMZN)

Analyst Upside as of September 10: 26%

Number of Hedge Fund Folders: 308

Amazon.com Inc (NASDAQ:AMZN) is a technology company that specializes in e-commerce, online retail, streaming, and data cloud services. Its e-commerce platform is functional in 20 countries and ships to over 100 countries. Its proprietary cloud service, Amazon Web Services, on the other hand, is used by millions of active customers and has over 130,000 AWS partners across 200 countries.

The company was first launched in 1994 and is on track to capture over 40% of the e-commerce market in the United States. As for its cloud segment, Amazon Web Services (AWS) increased its revenue by 17.2%, year-over-year in Q1 to 18.8% in Q2. AWS has logged 30% plus operating margins consistently for the past five quarters, making it a star performer.

Amazon.com Inc (NASDAQ:AMZN) is also making strides on the AI front. Over the past few months, the company has partnered with AI startups like Anthropic and signed deals with the US government to test new AI models. In July, the e-commerce giant processed a new server design, similar to the ones produced by NVIDIA. As for AI hardware, the company has produced several AI chips including Trainium and Inferentia, allowing it to reduce its dependence on other companies.

Analysts are bullish on AMZN and their 12-month median price target of $220 points to a 26% upside from current levels. Overall, AMZN was held by 308 hedge funds and Fisher Asset Management was the largest shareholder.

Diamond Hill Select Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:

“Among our top individual contributors in Q2 were Amazon.com, Inc. (NASDAQ:AMZN), Texas Instruments and Mr. Cooper Group. Internet retail and cloud infrastructure company Amazon is benefiting from strong profitability, particularly in its Amazon Web Services (AWS) business. Shares also received a boost amid growing optimism around the demand for AWS as Amazon customers’ investments in generative AI projects continue growing.”