8 Best FAANG Stocks To Buy According to Analysts

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

Analyst Upside as of October 22, 2024: 15.9%

Number of Hedge Fund Holders: 308

Amazon.com, Inc. (NASDAQ:AMZN) ranks third on our list of the best FAANG stocks to buy according to analysts. The technology company is an e-commerce giant that also provides streaming and data cloud services.

Amazon.com’s (NASDAQ:AMZN) growth trajectory is exceptional. On August 2, Nick Jones, Citizens JMP equity research analyst, joined Yahoo Finance to discuss his case for AMZN. He shares that AWS has outperformed market expectations, despite the total revenue falling short of its guidance in Q3. Jones adds that AMZN is yet to explore a multitude of opportunities to expand globally, and while he acknowledges that AMZN is massive, he states it is still in growth mode.

The company has been achieving milestone after milestone. Amazon.com, Inc. (NASDAQ:AMZN) has not only been actively involved in the development of AI hardware and software but has also signed partnerships with the government and AI startups. To stay on track with innovation, on October 11, the company launched its first autonomous robot, Proteus, that can complete miscellaneous tasks in the Amazon fulfillment centers independently and safely.

Similarly, in a recent development, on October 16, Amazon.com, Inc. (NASDAQ:AMZN) announced its plans to invest in nuclear energy to meet the power demand from AI data centers. Amazon Web Services, AWS, signed a partnership with Dominion Energy and X-Energy to develop small modular reactors in Virginia. The deal was closed shortly after MSFT and GOOGL announced similar plans to invest in nuclear energy projects. The total investment in nuclear energy amounts to nearly $500 million.

Amazon.com, Inc. (NASDAQ:AMZN) has significant growth potential and to achieve such the company is working tirelessly. Over the next few years, the company is not only poised to become a fully functional AI company but it is also on track to become carbon-free.

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.”