8 Best Dow Stocks To Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 302

Amazon.com, Inc. (NASDAQ:AMZN) is a retailer of consumer products, advertising, and subscription services. The stock tops our list of the best Dow stocks to buy according to hedge funds. As of May 23, it is up by 57.46% over the last twelve months.

In September 2023, the company revealed its plans for a generative AI-powered version of Alexa. On May 22, CNBC reported that Amazon.com, Inc. (NASDAQ:AMZN) is set to unveil a conversational artificial intelligence-powered version of its Alexa in 2024. The update to the voice assistant comes at the heels of the company’s rivals’ chatbot success. While the corporation has not set the price of the new version, it has disclosed that it will charge a monthly subscription fee. In its annual shareholder letter published in April, the company stated:

“We’re building a substantial number of GenAI applications across every Amazon consumer business. These range from Rufus (our new, AI-powered shopping assistant), to an even more intelligent and capable Alexa, to advertising capabilities (making it simple with natural language prompts to generate, customize, and edit high-quality images, advertising copy, and videos), to customer and seller service productivity apps, to dozens of others.”

As reported by Bloomberg on May 22, Amazon.com, Inc. (NASDAQ:AMZN) is planning on expanding its cloud business in Europe through an investment of €15.7 billion ($17 billion) in Spain. According to the company, the new investment is an extension of its previously announced €2.5 billion investment plan in Spain unveiled in 2021.

In the first quarter, 302 hedge funds held positions in Amazon.com, Inc. (NASDAQ:AMZN) worth $60.37 billion. As of March 31, Fisher Asset Management is the most dominant shareholder in the company and has a position worth $7.678 billion.

Vulcan Value Partners stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its first quarter 2024 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is a dominant, world class company with powerful secular tailwinds in place including its ecommerce penetration, digital advertising growth, and the cloud transition. Amazon reported strong results during the quarter. Losses in the Core Retail business significantly narrowed. Amazon reduced its cost to serve on a per unit basis for the first time since 2018 as the company’s recent regionalization efforts continue to bear fruit.”

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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