We recently published a list of Top 10 Trending Stocks as AI Hype Fades. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other top trending stocks as AI hype fades.
The US stock market took a major hit recently due to tariff-related uncertainties and a broader concern about AI stock valuations. Jeff Sonnenfeld, Yale School of Management senior associate dean for leadership studies, recently talked about the latest data showing a decline in CEO sentiment amid President Donald Trump’s tariff policies.
“We’re seeing with the CEO community, it’s not just the report you had this morning on the plunge in retail sentiment, the plunge in consumer sentiment, and CEO confidence indices by other indices such as Chief Executive Magazine. But we had 100 CEOs across sectors, 60% Republican, about 30% Democrat, 10% independent, and they were overwhelmingly discouraged. There’s a lot of goodwill that had been accumulated after the election. Even though most large CEOs didn’t support President Trump, they did rally and were encouraged to go down to Mar-a-Lago to talk about company-specific issues. The same thing happened in 2017. That goodwill dissipates quickly, and it’s happening right now. 85% think these tariff moves are a disaster, even though they’re in favor of tariffs. They want selective tariffs.”
With tariff deadlines fast approaching, it would be interesting to see how the market reacts to potential changes in President Trump’s policies and stance.
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For this article, we picked 10 stocks Wall Street analysts were discussing lately. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer entering an internet retail store, illustrating the convenience of online shopping.
Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Funds Investors: 286
Mark Mahaney from Evercore ISI said in a latest program on CNBC that Amazon.com, Inc. (NASDAQ:AMZN) is one of his top picks as he believes the stock is “dislocated” after the latest selloff.
“If Amazon trades below 25, then that’s the market telling you that they think there are material negative revisions coming up. If you have belief that that’s going to happen, then you stay away from the stocks. Right now, I don’t believe that we’re going to have negative revisions, so I’d be waiting in here, buying some of these names. But I’d be very selective about it, starting off with the ones that are most dislocated in my book—that’s Amazon, then Uber.”
Parnassus Core Equity Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) posted better-than-expected quarterly earnings, lifting investor confidence in the e-commerce giant’s ability to generate margin while continuing to invest into its large AI and retail end markets.
Amazon’s shares experienced volatility throughout the year as IT spending and the company’s margin structure came under scrutiny. Despite this, the stock outperformed as sentiment and results improved across both the overall environment for Amazon Web Services and the company’s ability to show margin.”
Overall, AMZN ranks 1st on our list of top trending stocks as AI hype fades. While we acknowledge the potential of AMZN, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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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Disclosure: None. This article is originally published at Insider Monkey.