Top 10 Growth Stocks in David Tepper’s Portfolio

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

Appaloosa Management LP’s Equity Stakes: $570.41 Million

Number of Hedge Fund Holders: 338

Amazon.com, Inc. (NASDAQ:AMZN) is the largest online retailer that sells consumer products, advertising, and subscription services. It also flexes its muscles in cloud computing, whereby it is the market leader and offers electronic devices. While the company primarily derives the bulk of its revenues from its online marketplaces, a significant portion of its profits is generated by its cloud division, AWS, which is expanding at a vigorous rate.

In February, Amazon.com, Inc. (NASDAQ:AMZN) released its financial results for the fourth quarter ending December 31, 2024. AWS contributed just 17% to its overall sales in 2024 but accounted for 58% of its operating profit, with revenues growing 19% to $28.8 billion. Much of this growth can be attributed to the AI sector, which has prompted many businesses to enhance their cloud infrastructure.

Advertising also represents a key area that underscores Amazon’s growth statistics. This is largely due to Amazon.com, Inc.’s (NASDAQ:AMZN) extensive customer base and data, which it leverages to attract advertisers. In the fourth quarter, advertising service revenues increased by 18% year over year to $17.3 billion. Analysts expect Amazon’s revenue and earnings per share (EPS) to grow at compound annual growth rates (CAGRs) of 10% and 20% between 2024 and 2027. Its growth is expected to gain momentum as the overall economic landscape improves and the AI market continues to flourish.