1. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Investors: 338
It is necessary to recognize Amazon.com, Inc. (NASDAQ:AMZN) as a one-stop shop for investing in publicly traded stocks, much like Jeff Bezos. This is due in part to the fact that many of the businesses in which Bezos Expeditions now has stock are privately held, but some of them have simply been incorporated into the Amazon mothership. There are prominent businesses like Whole Foods, but there are also a ton of smaller ones that work in areas like cloud computing, robotics, and artificial intelligence. Even though it is a huge tech company, its shares have increased by more than 21% in the last year, showing that there is still potential for profit.
Amazon (NASDAQ:AMZN) is the industry leader in cloud computing and e-commerce, using its size to provide unparalleled product variety and affordability. Through speedy shipping and access to exclusive content, the Prime membership increases consumer loyalty and generates high-margin recurring income. The Amazon ecosystem, which includes the Kindle and other gadgets, increases user engagement and draws in new customers.
Operating cash flow for the fiscal year 2024 trailing twelve months was $115.9 billion, up 36% from $84.9 billion for the same time in the previous year, which concluded in December. In February, Amazon.com, Inc. (NASDAQ:AMZN) announced that it would invest over $100 billion in capital projects this year, with a focus on artificial intelligence advancements. This decision was made despite the emergence of DeepSeek, a Chinese AI firm renowned for producing incredibly effective and affordable AI models that have ignited the IT industry. A large portion of Amazon’s capital expenditures go toward developing AI through Amazon Web Services, which requires upfront investments in data centers and infrastructure to maintain the platform’s explosive growth.
Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Amazon.com, Inc. (NASDAQ:AMZN) is a renowned online retailer and leader in cloud computing. The company’s Amazon Web Services (AWS) division offers utility-scale cloud solutions that support corporate America’s digital transition. During the quarter, Amazon’s shares contributed to performance as the company reported better-than-expected fiscal third-quarter results, with revenues and earnings beating analyst estimates. Operating margins expanded to 11%, driven by efficiency gains in logistics and robust AWS performance. Notably, AWS revenue growth accelerated during the quarter, along with recording its highest-ever operating margin of 38.1%, driven by easing cloud cost optimizations, renewed workload migrations, and an increasing contribution from AI workloads. On their earnings call, management highlighted plans to increase capital expenditures to enhance their technology infrastructure, catering to the surging demand for AI-driven computing.”
Overall, Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of the Jeff Bezos Investments in 2025: 12 Companies Bezos Is Investing In. While we acknowledge the potential for AMZN to grow, our conviction lies in the belief that some 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. Jeff Bezos Investments in 2025: 12 Companies Bezos Is Investing In is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.