Top 10 Stocks to Watch as Investors Brace for Potential Recession

Page 5 of 5

1. Amazon.com Inc (NASDAQ:AMZN)

Number of Hedge Fund Investors: 286

Jed Ellerbroek from Argent Capital said in a latest program on Schwab Network that Amazon.com Inc (NASDAQ:AMZN) is one of his fund’s biggest holdings amid the company’s strong retail and AWS business.

“Amazon is our favorite stock, and it’s the largest holding in Argent’s large-cap portfolio. We like it because both of their businesses are performing exceptionally well. The retail business that we’re all familiar with—where we’re seemingly receiving packages every day—is one of the few U.S. retail businesses actually growing revenue today. The others are Walmart and Costco, but Amazon is taking the lion’s share of that growth.

We also love their AWS business. The cloud computing unit is growing as businesses shift from on-premises to cloud data storage, and they’re also using the cloud more for AI purposes as they work toward deploying that technology in their operations every day. We like both businesses, think they both have a great growth outlook, and believe today is a great buying point.”

Diamond Hill Large Cap Concentrated Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:

“Among our top individual contributors in Q4 were General Motors and Amazon.com, Inc. (NASDAQ:AMZN). Internet retail and cloud infrastructure company Amazon continues taking share in non-discretionary categories. Retail margins also increased in the quarter, particularly international margins. Amazon Web Services’ (AWS) revenue growth accelerated in the quarter, and, despite increased AI-related capital expenditures, margins improved to all-time highs.”

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 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 10 AI Stocks You Need to Watch: News & Ratings and the 10 Jim Cramer Stocks to Watch This Month.

Page 5 of 5