Coatue’s 35 Most Important AI Stocks

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

Number of Hedge Fund Holders: 286   

Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. In the report for the third quarter of 2024, operating cash flow increased 57% to $112.7 billion for the trailing twelve months, compared with $71.7 billion for the trailing twelve months ended September of the prior year. Free cash flow also increased to $47.7 billion for the trailing twelve months, compared with $21.4 billion for the trailing twelve months ended September of the prior year. This demonstrates the company’s strong cash generation, with significant improvements in both operating cash flow and free cash flow over the past year. In addition, the company’s strategic collaboration with Databricks aims to accelerate the development of custom models built with Databricks Mosaic AI on AWS and for Databricks to leverage AWS Trainium chips as the preferred AI chip. This would help customers improve price performance when building generative AI applications, solidifying the company’s position in the competitive market.

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Amazon.com, Inc. (NASDAQ:AMZN) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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