Cantor Fitzgerald’s Top Internet Stocks: Best Stocks To Buy According To $13.2 Billion Firm

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

Number of Hedge Fund Holders In Q2 2024: 308

Share Price Target Upside: 23%

Cantor’s Rating: Overweight

Cantor’s Share Price Target: $230

Amazon.com, Inc. (NASDAQ:AMZN) is the global leader in eCommerce and a sizeable player in the cloud computing industry. Cantor has rated the stock as Overweight, based on optimism surrounding the two key businesses. For eCommerce, the firm believes that Amazon.com, Inc. (NASDAQ:AMZN) can expand its margins in the future via growing revenue, while for cloud computing, it thinks that AWS has further room for growth. Like Alphabet, Amazon.com, Inc. (NASDAQ:AMZN) is among the handful of companies with its own foundational AI model in the form of Claude. It allows the firm to take an end to end approach to AI, by operating in all layers of the AI stack. This includes Amazon.com, Inc. (NASDAQ:AMZN)’s in house processors for AI computing, its foundational model Claude, and the final application layer that not only allows it to improve its eCommerce marketing offerings but also enables it to compete in the high end cloud computing market with Microsoft and ChatGPT. Unlike Microsoft though, Amazon.com, Inc. (NASDAQ:AMZN)’s valuation is helped by its stable eCommerce model and removes some of the volatility associated with AI profitability from the shares.

Patient Capital Management mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter. Here is what the fund said:

“Amazon.com Inc. (AMZN) moved higher throughout the second quarter as AI demand helped to reaccelerate growth in their AWS business. It looks as though the cloud business is finally past the customer cost optimization period with customers restarting their cloud migrations as well as expanding spend on AI projects. Despite the top and bottom-line improvement seen in the first quarter, the company is significantly underearning its long-term potential as it continues to reinvest aggressively in the business. With 80% of global retail sales still being done in physical stores and 85% of global IT spending still on-premises, we see a long-run way for the dominant player in the cloud, retail, and increasingly logistics and advertising space.”