8 Best Cyclical Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Investors: 286

Amazon.com, Inc. (NASDAQ:AMZN) is a global leader in e-commerce, cloud computing, and digital streaming. The company earns revenue through retail sales, third-party marketplace fees, and subscription services such as Amazon Prime, and AWS, its industry-leading cloud platform. Amazon.com, Inc.’s (NASDAQ:AMZN) customers include individual consumers, businesses, and government organizations.

Amazon.com, Inc. (NASDAQ:AMZN) is dedicated to enhancing customer experience and operational efficiency. In its retail segment, the company has launched initiatives to improve customer satisfaction, including unlimited grocery delivery from Whole Foods Market, Amazon Fresh, and other grocery partners for $9.99 per month, along with fuel discounts of $0.10 per gallon at select U.S. stations. To further reduce delivery times and costs, Amazon.com, Inc. (NASDAQ:AMZN) has restructured its fulfillment network to distribute inventory more effectively across regional centers. Additionally, the company continues to expand its Prime services, offering benefits such as fast and free delivery, streaming access, and exclusive deals.

Amazon.com, Inc. (NASDAQ:AMZN) is also advancing its advertising capabilities with new offerings, such as Prime Video advertising and Generative AI-powered creative tools, which are expected to fuel future growth. For consumers, the company has introduced AI-powered shopping assistants like Rufus, now available in multiple countries, which provides personalized recommendations and real-time pricing insights. Amazon.com, Inc. (NASDAQ:AMZN) is also upgrading Alexa with new foundational AI models and integrating artificial intelligence into its devices, including the latest Kindle Scribe. In Amazon Web Services (AWS), the company has outpaced competitors by launching nearly twice as many machine learning and Generative AI features in the past 18 months.

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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