In this article, we’ll look at Jim Cramer’s Top 10 Bullish Stock Picks.
In a recent episode of Mad Money, Jim Cramer expressed his enthusiasm for the current market, highlighting a significant historical perspective. He reminded viewers that 20 years ago, Google went public at $85 per share and closed its first day up 18%. While many traders were thrilled by this initial gain, looking back, it was a major missed opportunity. The stock has since delivered a 7,736% return, far exceeding the S&P 500’s return of just over 600%. This example illustrates the potential wealth individual stocks can offer compared to broader indices, especially if you choose wisely.
“Twenty years ago today, Google went public at a split-unadjusted price of $85 per share. On its first day, the stock closed up 18%. Many traders, thrilled by this initial gain, took the profit. In retrospect, this was one of the greatest mistakes of all time. It has since delivered a 7,736% return, compared to the S&P 500’s return of slightly more than 600% with dividends. This serves as a reminder of the wealth that individual stocks can generate compared to indices when you choose wisely. And I’m telling you, it’s not that hard if you know how to research. So, I think it’s time to reconsider the average approach, at least for today.”
Cramer noted that, despite a strong recent performance—with the Dow gaining 237 points, the S&P 500 up 0.97%, and the NASDAQ increasing by 1.39%—the short-term market outlook is more complex. The market is currently on its longest winning streak since November of last year, with 93% of S&P 500 stocks showing gains.
However, he cautioned that the market might be “overbought,” as indicated by the Market Edge oscillator, a tool Cramer has relied on since 1987. When the oscillator reaches plus five or higher, it signals that it might be time to sell. Conversely, readings of minus five or lower indicate oversold conditions, suggesting it’s a good time to buy.
“Even though it was another good day for the markets. we need to consider both the short-term and long-term outlooks. The short-term setup isn’t as favorable. We’re currently on a significant winning streak, with the market having risen for straight days, the longest streak since November of last year. Impressively, 93% of the S&P 500 stocks are up. “
This follows a Monday when the market dropped sharply due to the Yen carry trade imploding, which led to a wave of forced selling and subsequent panic.
“As I’ve often said, panic is not a strategy. Since that panic, the market has mostly been trending upward.”
Jim Cramer has also expressed concern about the upcoming Justice Department case challenging the search engine giant’s role in the advertising exchange market. This legal issue could have a significant negative impact on it, a company that has greatly benefited from this setup. A victory for the Justice Department could be even more damaging than the previous issue with Apple over default search engine payments, which contributed to its monopoly concerns.
According to Cramer, the resilience of tech giants is evident, with strong recoveries even after short-term dips. (see 33 Most Important AI Companies You Should Pay Attention To).
Jim Cramer emphasizes that investing in truly exceptional companies, rather than merely following market indices, usually leads to the best returns. Cramer advises investors to avoid panicking during market fluctuations and to maintain their focus on holding strong companies for long-term success.
“As we move forward, it’s important to remember that investing in truly great companies, rather than just following the index, often yields the best returns. The substantial gain from Google over 20 years exemplifies this. Avoiding panic during market turbulence and sticking with strong companies is crucial for long-term success.”
Our Methodology
In this article, we reviewed a recent episode of Jim Cramer’s Mad Money and highlighted ten stocks that he is optimistic about. We also included information on hedge fund sentiment for each stock and ranked them based on how many hedge funds own each one, starting with the least owned.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jim Cramer’s Top 10 Bullish Stock Picks
10. Steel Dynamics Inc. (NASDAQ:STLD)
Number of Hedge Fund Investors: 34
Jim Cramer discussed Steel Dynamics Inc. (NASDAQ:STLD) in response to a viewer’s question. He stated that while Steel Dynamics Inc. (NASDAQ:STLD) is a strong company, it faces challenges due to a surge in steel imports from China via Mexico. Cramer noted that there is insufficient enforcement against these imports, which is negatively impacting Steel Dynamics Inc. (NASDAQ:STLD) and its competitor, Nucor Corporation (NYSE:NUE).
“Steel Dynamics is an excellent company, but we are currently facing a wave of steel dumping by China that is coming through Mexico. We are not effectively addressing this issue, which is negatively impacting Steel Dynamics and Nucor, the two best companies in the industry. It’s difficult to watch, and even though the stock is very cheap, I cannot endorse it at this time due to the situation unfolding below the border.”
Steel Dynamics Inc. (NASDAQ:STLD) is set for substantial growth thanks to its strong earnings and efficient operations. Steel Dynamics Inc. (NASDAQ:STLD)’s investment in a new flat-roll steel mill in Sinton, Texas, will increase its production capacity and improve profit margins. This growth is supported by ongoing U.S. infrastructure projects and high demand for steel in the automotive and construction industries. Steel Dynamics Inc. (NASDAQ:STLD) also benefits from its integrated business model, which includes steel production, metal recycling, and steel fabrication, allowing it to manage costs effectively and boost profitability.
Steel Dynamics Inc. (NASDAQ:STLD)’s use of Electric Arc Furnace (EAF) technology supports its commitment to sustainability and meets the growing demand for environmentally friendly steel. Additionally, with a strong balance sheet, low debt, and robust cash flow, Steel Dynamics Inc. (NASDAQ:STLD) is well-positioned to pursue further growth opportunities, including acquisitions and rewarding shareholders.
Here’s what the Chief Financial Officer of Steel Dynamics Inc. (NASDAQ:STLD), Theresa E. Wagler has to say in their latest earnings call:
“Good morning everyone. Thanks for joining us and thanks to teams for another followed performance. Our second quarter 2024 net income was $428 million or $2.72 per diluted share with adjusted EBITDA of $686 million. Second quarter 2004 revenue of $4.6 billion was slightly below sequential first quarter results due to lower realized steel pricing. Our second quarter operating income of $559 million was 26% lower than first quarter results driven by steel metal spread contraction as pricing declined more than scrap raw material costs. Our steel operations generated operating income of $442 million, 34% lower sequentially due to average realized pricing declining $63 to $1,138 per ton, while total shipments were generally steady.
Uniquely, all of our steel mills, except for Roanoke had planned maintenance outages in the second quarter, which impacted utilization and related conversion costs for the quarter. Additionally, our Sinton, Texas flat rolled steel division operated close to 60% of capacity for the quarter compared to almost 70% in the first quarter due to required outages to implement needed changes, which Barry will describe in a moment. Operating income from our mills recycling operations was $32 million, significantly higher than sequential first quarter results despite lower realized pricing as volumes increase and the team continues to gain operating efficiencies. As many of you already know, we’re the largest North American metals recycler processing and consuming ferrous scrap and non- ferrous aluminum, copper and other metals.” (Continue reading here…)
9. Cardinal Health Inc. (NYSE:CAH)
Number of Hedge Fund Investors: 39
Jim Cramer asked the CEO of Cardinal Health Inc. (NYSE:CAH), Jason Hollar, in a Mad Money interview about how the company managed to quickly recover after losing the OptumRx business, especially since many had counted them out. Despite the setback, Cramer noted that Cardinal Health Inc. (NYSE:CAH) had built a more stable foundation and delivered impressive results within the same quarter.
Jason Hollar highlighted that Cardinal Health Inc. (NYSE:CAH)’s earnings per share grew by 29% for both the quarter and the full year, building on nearly 50% earnings growth over the past two years. This success was supported by nearly $7 billion in adjusted free cash flow and was driven by the resilience of the Pharma segment, which saw 8% growth in the fourth quarter.
Hollar also emphasized that their Global Medical Products and Distribution (GMPD) business experienced significant year-over-year earnings growth, with $240 million added, largely due to effective inflation mitigation measures. With $300 million in net inflation now mitigated, Cardinal Health Inc. (NYSE:CAH) is well-positioned for continued growth, especially in its smaller segments, which collectively generate $4 billion in revenue and maintain nearly 10% margins, with double-digit growth expected to continue.
8. United Rentals Inc. (NYSE:URI)
Number of Hedge Fund Investors: 41
United Rentals Inc. (NYSE:URI) is the largest equipment rental company in the world, giving it a major edge in both scale and market reach. United Rentals Inc. (NYSE:URI) performs well due to strong demand from the expanding construction and industrial sectors, which are driven by infrastructure investments and rising construction activity. United Rentals Inc. (NYSE:URI) benefits from higher equipment use and rental prices.
Jim Cramer shared his thoughts on United Rentals Inc. (NYSE:URI) when asked by a viewer. He noted that while United Rentals Inc. (NYSE:URI) is currently below its previous highs, it has still increased by 25% per year. Cramer explained that United Rentals Inc. (NYSE:URI) is performing well because of the significant infrastructure projects happening in the country, which increase the demand for rented equipment.
“First of all, it’s significantly off its high, though it’s up 25% per year. The reason this company is performing well is because of all the infrastructure work happening in the country. Not everyone can go out and buy things; a lot of stuff is rented instead. This company is involved everywhere. I used to like the stock back in 2003; they used to come on air, and I thought they were brilliant. I haven’t seen them in a long time, but they’re still very impressive. You’ve got a winner there.”
Recent acquisitions, such as Ahern Rentals, have boosted United Rentals Inc. (NYSE:URI)’s market presence and fleet size, creating more opportunities for revenue and growth. United Rentals Inc. (NYSE:URI)’s use of technology and data analytics improves fleet management, customer service, and overall efficiency. Its solid financial performance, including significant revenue growth, healthy profit margins, and strong free cash flow, highlights its financial stability. Additionally, trends like increased equipment outsourcing by construction firms and a preference for renting over owning equipment support the industry’s growth, positioning United Rentals Inc. (NYSE:URI) for ongoing success and leadership in the market.
ClearBridge SMID Cap Growth Strategy stated the following regarding United Rentals, Inc. (NYSE:URI) in its fourth quarter 2023 investor letter:
“We exited our position in United Rentals, Inc. (NYSE:URI), in the industrials sector, an equipment rental company for general construction and industrial equipment. Despite being a long-term holding and having a history of strong stock price performance, we sold the stock because the company’s market capitalization exceeded a level that we judged appropriate for a SMID strategy.”
7. Palo Alto Networks Inc. (NYSE:PANW)
Number of Hedge Fund Investors: 66
Jim Cramer described Palo Alto Networks Inc. (NYSE:PANW) as a standout in the industrial sector, recommending it as a great stock to buy after its recent drop. He noted that following a disappointing earnings report in February, which caused the stock to fall from the $360s to the $260s, he advised maintaining or increasing investments in it after speaking with the CEO.
“Palo Industries is a fantastic, under-the-radar industrial stock, and given its recent pullback, I think now is the time to buy. When Palo Alto Networks reported back in February, the guidance was considered dismal, and the stock plunged from the $360s to the $260s in a single day. However, after speaking with the CEO, I advised you to stick with it and possibly buy more, which we did for the Travel Trust. The future looks bright for this top-tier cybersecurity company. Since then, the stock has been a powerhouse, closing at $343 today and rallying in after-hours trading. Palo Alto reported a strong top and bottom line beat with very encouraging guidance for the 2025 fiscal year, which has already started.”
Palo Alto Networks Inc. (NYSE:PANW) is a leading company in cybersecurity, known for its advanced solutions like next-generation firewalls, cloud security, and threat prevention. Palo Alto Networks Inc. (NYSE:PANW)’s strong reputation and innovative technology make it well-suited to meet the increasing demand for effective cybersecurity. By expanding its offerings through internal development and key acquisitions, such as Cortex and Demisto, Palo Alto Networks Inc. (NYSE:PANW) enhances its security and incident response capabilities.
The transition to a subscription-based revenue model provides steady income and reliable cash flows for Palo Alto Networks Inc. (NYSE:PANW). Strategic partnerships with major tech firms and the integration of its solutions into a broader ecosystem further strengthen its market position.
6. NextEra Energy Inc. (NYSE:NEE)
Number of Hedge Fund Investors: 73
Jim Cramer expressed strong support for NextEra Energy Inc. (NYSE:NEE), noting that it offers a significant dividend. However, he admitted that his enthusiasm for NextEra Energy Inc. (NYSE:NEE) is primarily based on the attractive dividend, and he has some concerns about whether there are other compelling reasons to invest in it.
“The stock I want to back up the Brinks truck on is NextEra Energy Partners. It offers a big dividend, but I’m not sure why we should buy it beyond that— and I’m a little concerned about that.”
NextEra Energy Inc. (NYSE:NEE) is a top player in the renewable energy sector, focusing heavily on wind and solar power. With a large pipeline of renewable energy projects, NextEra Energy Inc. (NYSE:NEE) is set to see significant growth in revenue and earnings in the near future. Its proven track record of running operations efficiently and managing costs effectively supports this positive outlook.
The regulated utility business through Florida Power & Light (FPL) adds stability and reliable cash flow for NextEra Energy Inc. (NYSE:NEE). Additionally, favorable government policies and incentives for renewable energy and carbon reduction align with NextEra Energy Inc. (NYSE:NEE)’s goals, positioning the company well for ongoing success in the evolving energy market.
ClearBridge Large Cap Growth Strategy stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its Q2 2024 investor letter:
“AI-related momentum was a key driver of performance in the second quarter, lifting the enablers in technology as well as holdings like renewable power producer NextEra Energy, Inc. (NYSE:NEE) that supply the increasing energy needs of data centers. Parts of the market lacking an AI connection, like our medical device holdings, underperformed despite no change to fundamentals. We have managed through several similar momentum periods over our tenure and have delivered long-term results for shareholders by staying true to an approach that emphasizes diversification across three buckets of growth companies (select, stable and cyclical) and seeks to take advantage of attractive entry points into quality growth businesses.”
5. KKR & Co Inc. (NYSE:KKR)
Number of Hedge Fund Investors: 75
Jim Cramer praised KKR & Co Inc. (NYSE:KKR) in response to a viewer’s question, calling it one of the best-run companies globally. He mentioned that he had the opportunity to meet the CEO at a dinner and was impressed by him, describing him as exceptional. Cramer emphasized his belief that KKR & Co Inc. (NYSE:KKR) is an outstanding company.
“It’s one of the best-run companies in the world. I had the pleasure of meeting the CEO once at dinner—I mean, the guy’s dynamite, and I think it’s a really great company.”
KKR & Co Inc. (NYSE:KKR) is a major global investment firm with a diverse portfolio that spans private equity, credit, real estate, and infrastructure. KKR & Co Inc. (NYSE:KKR)’s revenue comes from management fees, performance fees, and investment income, which provide both stability and growth opportunities. KKR & Co Inc. (NYSE:KKR) has a strong history of successful acquisitions, especially in technology and healthcare, which align with current growth trends and expand its market presence.
As the alternative investment industry expands due to rising interest from institutional and high-net-worth investors, KKR & Co Inc. (NYSE:KKR) is well-positioned to benefit from these trends. With a solid balance sheet and significant cash flow, KKR & Co Inc. (NYSE:KKR) has the financial strength to make new investments, pursue acquisitions, and deliver value to shareholders, setting it up for continued success and growth.
Baron FinTech Fund stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its Q2 2024 investor letter:
“We initiated a position in KKR & Co. Inc. (NYSE:KKR), one of the largest alternative asset managers in the world with $578 billion of assets under management (AUM). We believe alternative asset management is one of the best secular growth areas of financial services, and KKR should be a prime beneficiary. Global alternatives AUM totaled $16.3 trillion at the end of 2023 and grew at an 11% CAGR since 2010, according to Preqin. Annual industry growth is expected to exceed 8% over the next five years with private equity (PE), venture capital, and private credit expected to grow at double-digit annual rates.
Founded in 1976 as one of the earliest leveraged buyout firms, KKR was led for decades by co-founders Henry Kravis and George Roberts. Since going public in 2010 as a pure-play PE firm, KKR has successfully diversified into other private asset classes, including private credit, real estate, and infrastructure investing. AUM has risen nearly 10-fold since 2010 (an 18% CAGR), and PE’s share of firm AUM has shrunk to less than one-third. These non-PE asset classes are less penetrated than PE and provide a substantial runway for KKR to continue growing its funds, fees, and earnings. KKR also has significant growth opportunities in Asia. The firm entered the Asian market in 2005 and has a scaled presence with 570 employees in a region where alternative asset management is far less penetrated compared to Western countries. In 2021, KKR successfully transitioned leadership from Kravis and Roberts to co-CEOs Scott Nuttall and Joe Bae, longtime KKR employees responsible for many of the growth initiatives that are driving KKR’s success today…” (Click here to read the full text)
4. Datadog Inc. (NASDAQ:DDOG)
Number of Hedge Fund Investors: 79
Jim Cramer shared his thoughts on Datadog Inc. (NASDAQ:DDOG) when a viewer asked him about it. He acknowledged that Datadog Inc. (NASDAQ:DDOG) is generally a great company and noted that there were offers to buy it for $20 billion before it went public.
“Datadog is usually a fabulous company. There were people trying to buy it for $20 billion before it ever went public. My problem is that it’s just the definition of enterprise software—the kind of analytics that tells you how your company’s doing. There are too many players in that space. So I’m going to reiterate: I don’t trust it yet, but it is a very good company. And thank you for the question.”
Datadog Inc. (NASDAQ:DDOG) is a leading provider of observability and monitoring solutions, essential for managing complex IT systems and cloud environments. Its platform includes a wide range of tools for monitoring, security, and analytics, which has driven strong revenue growth. This growth is supported by increasing adoption among large enterprises and a growing customer base.
Datadog Inc. (NASDAQ:DDOG) continues to improve its offerings, recently adding new features like security monitoring and Application Performance Monitoring (APM). With a high customer retention rate and effective upselling and cross-selling of additional services, Datadog Inc. (NASDAQ:DDOG) enhances its growth and stability. As the demand for cloud-based monitoring solutions grows, Datadog Inc. (NASDAQ:DDOG) is well-positioned to benefit. Datadog Inc. (NASDAQ:DDOG)’s solid financial performance, including robust revenue growth, improving profit margins, and strong cash flow, highlights its potential for ongoing success.
The Brown Capital Management Small Company Fund stated the following regarding Datadog, Inc. (NASDAQ:DDOG) in its fourth quarter 2023 investor letter:
“We recognize that EGCs do not grow in straight lines. They stumble and sometimes fall. But they also have inflection points that lead to step functions of growth and profitability. We have been well-served by staying invested during tough periods. In fact, our patience and tolerance often allow us to participate in significant upside when our long-term thesis materializes.
For example, Datadog, Inc. (NASDAQ:DDOG) is an EGC that has experienced stock price declines driven by near-term challenges. Datadog is a leading SaaS-based IT-monitoring and analytics platform that automates the real-time monitoring of infrastructure, application performance and networks. This enables Datadog’s customers to quickly identify and address performance issues in their networks. While competitors only provide a siloed view of cloud infrastructure, applications, logs or networks, Datadog is differentiated by providing a unified view across all these areas via a visual interface configured to the needs of individual users. The technology saves time, money and headaches by driving collaboration among development, operations and business teams; accelerating time-to-market of new software; reducing the time needed to resolve problems; improving infrastructure efficiency; and enabling a better understanding of customer behavior…” (Click here to read the full text)
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Investors: 184
Jim Cramer addressed concerns about Apple Inc. (NASDAQ:AAPL)’s stock being expensive, suggesting that its strong cash flow justifies the price, rather than just focusing on earnings. He referenced an insightful piece by Ben Rice from Melius, which reinforced the idea of holding onto Apple Inc. (NASDAQ:AAPL) despite current market signals to sell.
“Another firm mentioned that Apple’s stock is expensive, which it is—unless you consider the cash flow instead of just the earnings. The piece by the irrepressible Ben Rice from Melius made so much sense that you know you need to hold on tight and not feel compelled to sell your Apple stock when the market gets overbought, as it is now. The tech titans, the hyperscalers, the colossal portion of the market—yes, the mega stocks—they just come back every time you sell. But short-term signals say to sell. To me, that means it’s time to bunker down and accept the unavoidable small losses. These stocks are just too good to let go. Bottom line: Hold on to them.”
Apple Inc. (NASDAQ:AAPL)’s wide-ranging ecosystem, which includes the iPhone, iPad, Mac, Apple Watch, and services like iCloud and Apple Music, creates a loyal and interconnected customer base. Apple Inc. (NASDAQ:AAPL) consistently grows its revenue due to high demand for its flagship products, particularly the iPhone, and increasing sales in its services segment. Apple Inc. (NASDAQ:AAPL)’s dedication to returning capital to shareholders through dividends and share buybacks enhances its investment appeal.
Apple Inc. (NASDAQ:AAPL) leads in technology innovation, with recent product releases such as the iPhone 15 and Apple Watch Series 9, which feature advanced camera systems and longer battery life. Strategic investments, including acquiring MLB’s Apple TV+ rights and the virtual reality content provider NextVR, position Apple Inc. (NASDAQ:AAPL) to enter new markets and sustain its growth.
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Investors: 216
On the 20th anniversary of Alphabet Inc. (NASDAQ:GOOG)’s IPO, Jim Cramer reflected on the company’s remarkable journey. Cramer had estimated Alphabet Inc. (NASDAQ:GOOG)’s value at around $300 on its first day, a figure so high that it prompted questions from his lawyer. In hindsight, he admitted that $500 would have been a more accurate estimate, though he was being conservative.
“On this the 20th anniversary of the IPO, I want you to consider the saga of Google. I like the saga so much; it makes me happy. When it went public, it used a Dutch auction system which favored buyers over sellers. You got a driven price if you managed to snag a piece of it. I remember mentioning on air that I thought Google was worth about $300 that day, a price so high that our lawyer called me to ask how I came up with that number. I said I would have used $500 but was being conservative.”
Since its IPO, Alphabet Inc. (NASDAQ:GOOG) has continually reinvented itself, growing its cloud business significantly under Thomas Kurian, who took over in 2019. Cramer praised Kurian’s achievements, noting that Google Cloud is now on a $42 billion run rate. He also highlighted recent executive changes, including the appointment of a new CFO, which he views positively. Cramer noted that while Alphabet Inc. (NASDAQ:GOOG) has been a tremendous performer—delivering a 7,736% return since its IPO—investors often struggle with short-term market fluctuations.
He compared this situation to recent market movements, such as NVIDIA Corporation (NASDAQ:NVDA)’s strong performance despite broader market concerns. Cramer emphasized that individual stocks, rather than indices like the S&P 500, are the real drivers of wealth creation. He also advised maintaining positions in top-performing companies like NVIDIA Corporation (NASDAQ:NVDA) and Amazon.com, Inc. (NASDAQ:AMZN), despite short-term market volatility.
Artisan Select Equity Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter:
“The top contributors to performance for the quarter were Alphabet Inc. (NASDAQ:GOOG), Lam Research and Elevance. Alphabet shares rose by 21% during the quarter, making it the largest contributor to our performance. The company reported excellent Q1 earnings, highlighting accelerating revenue growth, strong profitability and effective capital allocation. Alphabet’s core search business is growing at a mid-teens rate—the fastest growth rate in nearly two years. Importantly, its non-search businesses have reached significant scale, with its cloud and YouTube businesses expected to reach a combined run-rate of $100 billion by the end of 2024
During the quarter, Alphabet also displayed meaningful progress in its AI initiatives, and we believe it is well positioned to be a leader in this field. The capital allocation is solid. It is returning all the free cash flow to shareholders and announced that it will start paying a dividend. Alphabet’s shares are trading at just over 20X next year’s earnings, which is a very reasonable valuation for a business with such high-quality characteristics and growth potential.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Investors: 308
Jim Cramer noted that, like Amazon.com, Inc. (NASDAQ:AMZN), there was disappointment with recent performance, with concerns about consumer spending slowing down. However, Morgan Stanley recently reported optimism for same-day consumable sales, which are becoming increasingly popular.
“Similar to Amazon, people were disappointed with the last quarter, with a lot of talk about consumers tapping out. Today, Morgan Stanley came out and said there’s hope for same-day consumable sales, which are becoming habit-forming. Amazon’s making a comeback—up 18 points from where it fell after the setback.”
Amazon.com, Inc. (NASDAQ:AMZN) continues to lead in global e-commerce with its wide range of products, efficient logistics, and focus on customer satisfaction. Its cloud computing arm, AWS, drives significant growth due to high demand for cloud services and strong profit margins. Amazon Prime’s growing subscriber base benefits from perks like free shipping, streaming services, and exclusive deals.
Amazon.com, Inc. (NASDAQ:AMZN)’s substantial investment in technology, including artificial intelligence and automation, boosts efficiency and supports innovation. Amazon.com, Inc. (NASDAQ:AMZN)’s diverse revenue sources—advertising, subscription services, and physical retail stores like Whole Foods—help manage risks and provide multiple growth opportunities. With solid financial results, including strong revenue growth, high-profit margins from AWS, and healthy cash flow, Amazon.com, Inc. (NASDAQ:AMZN) is well-positioned for continued expansion and success in both current and new international markets.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ: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 timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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