Edge Computing Market Size and 7 Best Stocks To Buy

1. Amazon.com, Inc. (NASDAQ:AMZN) 

Number of Hedge Fund Holders: 302

Amazon.com, Inc. (NASDAQ:AMZN) is a leading American multinational technology company with a diverse portfolio, including e-commerce, cloud computing via Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence. Notably, AWS offers edge computing services as part of its cloud solutions.

Insider Monkey’s research for the March quarter of 2024 revealed that 302 out of the 919 hedge funds tracked held stakes in Amazon.com, Inc. (NASDAQ:AMZN). The largest hedge fund investor was Ken Fisher’s Fisher Asset Management, with a stake valued at $7.67 billion.

On June 14, JPMorgan reiterated its Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN) with a price target of $240. This stance followed a comprehensive analysis of the U.S. e-commerce landscape, including category penetration and Amazon’s market share. The research indicates that Amazon is on track to surpass Walmart as the largest U.S. retailer by 2024, with e-commerce penetration potentially exceeding 40% in the long term.

Furthermore, Amazon.com, Inc. (NASDAQ:AMZN) is emerging as a powerhouse in AI, driven by its AWS business, which achieved operating margins of over 37% in the first quarter. AWS operating margins have exceeded 30% for the past five consecutive quarters. Additionally, Amazon’s first-quarter revenue increased by 12.5% year-over-year, and its adjusted EPS more than tripled.

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 edge computing companies to grow, 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 as promising as AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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