Top 10 Stocks on Jim Cramer’s Radar

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1. Amazon.com Inc. (NASDAQ:AMZN)

Number of Hedge Fund Investors: 308

JMP Securities has raised its price target for Amazon.com Inc. (NASDAQ:AMZN), thanks to positive expectations about its advertising business. Analysts believe that Amazon.com Inc. (NASDAQ:AMZN)’s ad platform, combined with its extensive customer data, makes it a compelling choice for advertisers, potentially drawing more marketing dollars compared to its competitors. Jim Cramer points out that this boost in the price target reflects confidence in Amazon.com Inc. (NASDAQ:AMZN)’s ability to leverage its advertising strengths effectively.

“Amazon landed a price-target bump at JMP Securities, rooted in analysts’ optimism about its advertising business. Amazon’s integrated ad platform combined with its trove of customer data is an attractive pairing that should attract more marketing dollars relative to peers, analysts argued.”

Amazon.com Inc. (NASDAQ:AMZN) has shown a strong recovery in its Q2 2024 earnings report. Revenue reached $134 billion, marking an 11% increase from the previous year, while net income surged to $6.7 billion, a turnaround from a $2 billion loss in the same quarter of 2022. This improvement is largely attributed to a 19% rise in revenue from Amazon Web Services (AWS), highlighting Amazon.com Inc. (NASDAQ:AMZN)’s leading role in the cloud and AI markets.

Amazon.com Inc. (NASDAQ:AMZN)’s investments in generative AI and warehouse automation are expected to support long-term growth, particularly in high-margin sectors. Despite some challenges in retail due to cautious consumer spending, Amazon.com Inc. (NASDAQ:AMZN) is making strategic enhancements to its delivery network and shopping experience. These efforts are likely to improve profit margins and boost market share. Analysts are optimistic about Amazon.com Inc. (NASDAQ:AMZN)’s future, anticipating continued growth in AWS and favorable outlooks from major financial institutions like JPMorgan and Wedbush.

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 the ones on our list 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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