Joe DiMenna’s Stock Portfolio: Top 10 Stocks to Buy

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

Number of Hedge Fund Holders as of Q4: 338

Zweig-DiMenna Associates’ Equity Stake: $62.09 Million 

In Q4 2024, Amazon.com, Inc. (NASDAQ:AMZN) reported $187.79 billion in revenue, a 10% year-over-year increase, while earnings per share (EPS) of $1.86 exceeded analyst expectations by 25%. As of Q4 2024, Zweig-DiMenna Associates held 283,009 shares of the company, valued at approximately $62.09 million. Hedge fund interest in Amazon.com, Inc. (NASDAQ:AMZN) also increased, with 338 funds tracked by Insider Monkey holding positions worth nearly $69.02 billion by the end of the quarter, up from 286 funds in Q3. This growing institutional investment reflects strong confidence in Amazon’s continued growth and market dominance.

Amazon.com, Inc. (NASDAQ:AMZN) has outperformed the broader market over the past year, with analysts projecting further upside driven by its strong position in e-commerce, cloud computing, and artificial intelligence. Jefferies analyst Brent Thill has set a target price of $275 per share, implying a 20% gain from its current level, while Wall Street’s median target price of $270 suggests a 17% increase. Despite reporting strong Q4 results— with revenue rising 10% to $188 billion and GAAP net income surging 86%—the stock declined due to lower-than-expected guidance. Amazon.com, Inc. (NASDAQ:AMZN) anticipates a 7% revenue increase in Q1, impacted by currency exchange headwinds and AI-related investments affecting margins. However, these expenses are expected to fuel long-term growth, solidifying the company’s dominance in cloud computing and logistics. While the stock’s valuation appears high at 41 times earnings, it has consistently surpassed earnings estimates, suggesting analysts may be underestimating its potential.

Amazon.com, Inc. (NASDAQ:AMZN)’s strong financial performance, expanding dominance in multiple high-growth sectors, and increasing hedge fund interest make it a top stock to buy. Its leadership in e-commerce, cloud computing, and artificial intelligence, coupled with strategic investments in logistics and AI infrastructure, positions it for sustained long-term growth, making it an attractive choice for investors seeking both stability and upside potential.