Top 5 Stocks to Buy in 10 Different Sectors

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

FINVIZ.com Sector: Consumer Cyclical

Number of Hedge Fund Holders: 269

Like the number one and three stocks on our list in Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN) is a tech stock so the three are not that diversified. Nevertheless, Amazon.com, Inc. (NASDAQ:AMZN) also ranks as a leading consumer cyclical stock given its e-commerce business.

Alphyn Capital commented on Amazon.com, Inc. (NASDAQ:AMZN) in a Q3 2022 investor letter,

“It is fascinating to me how Amazon.com, Inc. (NASDAQ:AMZN) continually uses its scale, operating resources, and “day one” attitude3 to expand the number of industries in which it is involved. Healthcare is now an area of increased focus. In July, Amazon purchased 1Life Healthcare Inc., which operates a primary-care practice under the name One Medical for $3.9 billion. Amazon also bid for home-health-services provider Signify but lost out to CVS in September with a winning bid of $8 billion.

It is hard to predict what direction this will take, but Amazon often finds ways to add “synergies” from seemingly disparate services. For example, consider that Amazon has invested heavily in video, which drives the adoption of its Prime subscription. As a result, prime members provide a recurring revenue stream (approximately $25 billion) and spend more heavily on Amazon’s retail. This strengthens Amazon’s retail network effects to benefit its high margin third-party marketplace and advertising businesses.”