1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 339
Amazon.com, Inc. (NASDAQ:AMZN), a leader in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence, has demonstrated extraordinary long-term growth, with its stock surging over 226,744% since its 1997 IPO. In Q4 2024, the company’s operating income rose to $21.2 billion from $13.2 billion the previous year, while net income doubled to $20 billion. AWS, its cloud computing division, reported a 19% increase in quarterly revenue to $28.8 billion. For the full year, net sales grew 11% to $638 billion, with operating income nearly doubling to $68.6 billion and net income reaching $59.2 billion. Despite a 44% stock surge in 2024, outpacing the market’s 23% gain, early 2025 has brought volatility due to conservative forward guidance. However, Amazon’s financial strength, market dominance, and AI-driven innovations suggest strong long-term growth potential.
On February 27, 2025, Amazon Web Services (AWS) introduced Ocelot, a groundbreaking quantum computing chip designed to lower the costs of quantum error correction by up to 90% compared to existing methods. Developed at the AWS Center for Quantum Computing at Caltech, Ocelot marks a major step toward fault-tolerant quantum computers capable of tackling complex commercial and scientific problems beyond the reach of conventional systems. The chip’s architecture integrates error correction from the outset, utilizing “cat qubits,” which inherently suppress certain types of errors, reducing the resources needed for error correction. For the first time, AWS researchers have successfully combined cat qubit technology with additional quantum error correction components on a scalable microchip, leveraging manufacturing techniques from the microelectronics industry.
Mark Cuban has found remarkable success investing in Amazon.com, Inc. (NASDAQ:AMZN), revealing in 2019 that he owned nearly $1 billion worth of the company’s stock, purchased at a split-adjusted price between $25 and $35 per share. Insider Monkey’s database indicated that 339 hedge funds out of the 1,009 hedge funds held stakes in Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q4 2024, with a value of over $69 billion, as opposed to 286 funds in Q3.
Overall, Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of Mark Cuban’s top 10 stock picks. While we acknowledge the potential for AMZN as an investment, 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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