1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 339
Balyasny Asset Management’s Equity Stake: $769.30 Million
Amazon.com, Inc. (NASDAQ:AMZN) has increasingly integrated artificial intelligence across its core business segments: e-commerce, cloud computing, and digital advertising. The implementation of AI has played a significant role in the company’s strong financial performance. In 2024, it reported an 11% increase in revenue, reaching $638 billion. Its operating margin expanded by four percentage points, while GAAP net income surged by 90% to $5.53 per diluted share. Amazon Web Services (AWS) remains the fastest-growing segment, with Q4 revenue rising 19% to $28.8 billion and operating income increasing by 47% to $10.6 billion. A key contributor to AWS’s profitability is Amazon’s development of proprietary AI processors, known as application-specific integrated circuits (ASICs), which enhance efficiency and reduce operational costs.
Amazon.com, Inc. (NASDAQ:AMZN) also made significant strides in improving its delivery network, increasing the number of same-day delivery sites by over 60% in 2024. The expansion now covers more than 140 metropolitan areas, allowing the company to fulfill orders more quickly and efficiently. In the advertising segment, Amazon reported an 18% year-over-year revenue increase in Q4, reaching $17.3 billion. This growth pushed the segment’s annual revenue run rate to $69 billion—more than double its size from four years ago. AI remains at the center of Amazon’s strategic vision, with continuous investment in automation, logistics, and digital marketing enhancements.
Looking ahead to 2025, Amazon.com, Inc. (NASDAQ:AMZN) plans to further invest in its fulfillment and transportation infrastructure. The company aims to expand same-day delivery facilities, enhance its inbound logistics network, and implement greater automation to improve delivery speed while reducing costs.
In Q4 2024, Balyasny Asset Management increased its stake in the company by 1,049%. From its previous holding of 305,302 shares in Q3, the hedge fund held over 3.5 million shares of Amazon.com, Inc. (NASDAQ:AMZN) by the end of Q4, valued at over $769 million. Hedge fund interest in the company also increased, with 339 out of 1,009 funds tracked by Insider Monkey holding positions worth nearly $69.04 billion by the end of the quarter, up from 286 funds in Q3.
Overall, Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of top 10 stocks to buy according to Balyasny Asset Management. 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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