1. Amazon.com, Inc. (NASDAQ:AMZN)Berkshire Hathaway’s Stake Value: $1.80 Billion
Number of Hedge Fund Investors: 302
Amazon.com, Inc. (NASDAQ:AMZN) is the stock that Warren Buffett and hedge funds are crazy about, owing to its leading position in e-commerce and cloud computing. While Amazon.com, Inc. (NASDAQ:AMZN) made a name for itself in selling goods online, it is increasingly becoming a force to reckon with as it continues to leverage artificial intelligence to strengthen its edge on cloud computing.
Amazon Web Services, the company’s cloud unit, is already designing its chips and is increasingly integrating AI into its offerings to strengthen its competitive edge against Microsoft (MSFT). In addition, Amazon.com, Inc. (NASDAQ:AMZN) is already eyeing new growth opportunities through its satellite internet subsidiary, Kuiper.
As of the end of the first quarter, Warren Buffett and a total of 302 hedge funds held stakes in the tech giant, affirming why it is one of the top stocks.
In its investor letter from May 2024, Lakehouse Global Growth Fund provided an update on Amazon.com, Inc. (NASDAQ:AMZN), sharing their analysis and perspective on the company’s performance and future prospects:
“Amazon.com, Inc. (NASDAQ:AMZN) delivered an impressive quarterly result that also came in well ahead of analyst expectations. Net sales increased 13% year-on-year to $143.3 billion and operating profits increased 219% year-on-year to $15.3 billion (vs the high end of guidance at $12.0 billion). As has been the case for several quarters now, the highlight of the result was the significant improvement in profitability metrics, as management continues to drive cost efficiencies across its retail operations and Amazon Web Services (AWS). Amazon delivered to Prime members at its fastest speeds ever. In March, across the top 60 largest U.S. metro areas, nearly 60% of Prime member orders arrived the same or next day, and in London, Tokyo, and Toronto, 3 out of 4 items were delivered the same or next day. Bigger picture, we continue to believe that the market underestimates the length of the runway ahead in the core retail business (note that e-commerce sales in the U.S. still only make up 15% of total retail sales) and that there is still significant margin expansion ahead as scale and efficiency benefits continue to come through.”
While we acknowledge the potential of AMZN and Buffett’s other stock picks, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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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Disclosure: None.This article was originally published at Insider Monkey.
