1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 302
A prominent leader in technology and e-commerce, Amazon.com, Inc. (NASDAQ:AMZN) has been making substantial advancements in the drone industry. The company’s Prime Air program is shifting to smaller, quieter drone models with the six-rotor MK30. This faster, lighter, rain-resistant drone is expected to be available at the company’s three testing sites and in cities in Italy and the U.K. by late 2024. These drones will operate from the same inventory facilities as Amazon’s delivery trucks, offering customers a new delivery experience.
Amazon.com, Inc. (NASDAQ:AMZN) is solidifying its position as a leader in AI, driven by its AWS business, which achieved operating margins over 37% in the first quarter. AWS operating margins have consistently exceeded 30% for the past five quarters. Additionally, Amazon’s first-quarter revenue increased by 12.5% year-over-year, and its adjusted EPS more than tripled.
Moreover, JPMorgan recently reiterated its Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN), with a price target of $240. This decision followed an in-depth analysis of the U.S. e-commerce landscape, including category penetration and Amazon’s market share. The research suggests that Amazon is on track to surpass Walmart as the largest U.S. retailer by 2024, with long-term e-commerce penetration potentially exceeding 40%.
As of March 31, Amazon.com, Inc. (NASDAQ:AMZN) had 302 hedge fund investors out of 919 funds tracked by Insider Monkey. The largest stakeholder was Ken Fisher’s Fisher Asset Management, with 42.5 million shares valued at $7.6 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.”
While we acknowledge the potential of drone stocks, 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.
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