1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 339
Eagle Capital Management’s Equity Stake: $2.80 Billion
Amazon.com, Inc. (NASDAQ:AMZN) unveiled its long-anticipated “Alexa+” service on February 26, integrating generative AI to enhance its digital assistant’s capabilities. Priced at $19.99 per month but free for Prime members, Alexa+ aims to streamline daily tasks through natural conversation, offering personalized assistance for organization, project planning, and problem-solving. The U.S. rollout is set to begin in the coming weeks, with expectations that this innovation could strengthen the company’s position in the AI-driven smart assistant market. Following the announcement, Amazon’s stock saw a positive reaction, although its overall performance in February 2025 remained weak, with shares declining by 9%.
Despite recent stock struggles, Amazon.com, Inc. (NASDAQ:AMZN) has demonstrated solid financial performance in its Q4 2024 earnings report. The company reported earnings per share (EPS) of $1.86, surpassing analyst expectations of $1.46, and generated $187.79 billion in revenue, reflecting a 10% year-over-year increase. Investors reacted negatively to Amazon’s Q1 2025 sales forecast of $151 billion to $155.5 billion, which fell short of Wall Street’s $158.5 billion projection. Concerns also emerged over the company’s increased investment in AWS and AI, which rose to $100 billion from $83 billion in 2024, alongside a $2.1 billion foreign exchange headwind.
With President Donald Trump advancing different economic priorities, investors are assessing potential policy impacts on major corporations like Amazon.com, Inc. (NASDAQ:AMZN). Industry expert Justin Abrams emphasizes that the company remains well-positioned despite macroeconomic shifts, as it operates in a sector relatively shielded from consumer sentiment fluctuations. Key economic trends, including inflation, unemployment, tariffs, and AI integration, could strengthen Amazon’s market position. The company’s ability to leverage its substantial float and Amazon Prime’s extensive subscriber base further supports cost efficiencies. Additionally, tariffs on foreign competitors may help mitigate price disparities, reinforcing Amazon’s competitive edge.
As of Q4 2024, Eagle Capital Management held approximately 12.77 million shares of Amazon.com, Inc. (NASDAQ:AMZN), valued at over $2.8 billion. Hedge fund interest in Amazon also increased, with 339 out of 1,008 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 the top 10 stocks to buy according to Eagle Capital 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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