Top 12 Stocks to Buy According to Citadel Investment Group

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

Number of Hedge Fund Holders as of Q4: 339

Citadel Investment Group’s Equity Stake: $804.41 Million 

Following the recent announcement of the launch of its upgraded voice assistant, Alexa+, Amazon.com, Inc. (NASDAQ:AMZN) is reportedly gearing up to introduce a range of AI-powered devices. Panos Panay, head of Amazon’s devices and services division, hinted at a “constellation” of interconnected devices designed to enhance user experience, though specific details remain undisclosed. Amazon already incorporates AI into products like Ring security cameras, Eero Wi-Fi routers, and Echo smart speakers, and it also offers smart glasses, rings, and fitness trackers. Alexa+ brings generative AI capabilities, enabling it to handle more complex tasks such as ordering groceries, booking services, and providing personalized responses based on past interactions. Consumer interest in voice-activated technology remains strong, with over half of users favoring it for its speed and convenience. Despite a delayed rollout, Amazon.com, Inc. (NASDAQ:AMZN)’s move reflects the growing integration of AI in everyday consumer technology, positioning the company for further advancements in the smart device market.

Amazon.com, Inc. (NASDAQ:AMZN)’s financial performance in Q4 2024 showcased strong growth; the company exceeded expectations with earnings per share (EPS) of $1.86 and revenue of $187.8 billion, marking a 10% year-over-year increase. However, its Q1 2025 sales forecast of $151 billion to $155.5 billion fell short of Wall Street’s $158.5 billion estimate, raising concerns about future growth. Q4 2024 saw operating income climb to $21.2 billion from $13.2 billion the previous year, while net income doubled to $20 billion, driven largely by AWS, which reported a 19% revenue increase to $28.8 billion. Full-year net sales rose 11% to $638 billion, with operating income nearly doubling to $68.6 billion and net income reaching $59.2 billion.

Despite Amazon’s strong financial performance and continued investment in AI and cloud computing, its stock saw a decline of over 3% on March 3, 2025, amid a broader market downturn triggered by President Trump’s tariff confirmation. Despite this short-term volatility, Amazon.com, Inc. (NASDAQ:AMZN) is a top stock to buy due to its strong long-term growth outlook, supported by its dominant position in e-commerce and cloud services.