10 Best Stocks for Beginners with Little Money According to Hedge Funds

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

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) is a leading e-commerce company that has grown in a variety of businesses such as its core e-commerce operations, cloud services, as well as digital advertising. Additionally, Amazon manufactures and sells electronic devices such as Kindle, Ring, Blink, Fire tablet, Fire TV, and Echo.

Amazon.com, Inc. (NASDAQ:AMZN) serves as a global leader in e-commerce, cloud computing, and digital streaming. The company posted better-than-expected earnings and revenue for its most recent quarter, with Amazon’s cloud and advertising units showing strong growth. Ahead of the new earnings for Q4 2024 which are to be released on February 6, several Wall Street firms agree the e-commerce and cloud giant boasts the strongest setup among the mega-cap tech companies going into the earnings season, as reported by CNBC.

Jefferies analyst Brent Thill maintained a Buy rating on the stock and set a price target of $275. On January 24, Amazon.com, Inc. (NASDAQ:AMZN) also got a Buy rating from Scotiabank’s Nat Schindler. Lisa Schreiber from Gradient Investments emphasized Amazon.com Inc (NASDAQ:AMZN) being one of her top picks for 2025 as follows:

“It’s the leader in online retail and is very well-diversified with its cloud-based business, where it’s also a leader. Additionally, its ad business is gaining momentum and doing very well. Together with the fact that the path to AI monetization seems clearer for Amazon.com Inc (NASDAQ:AMZN) compared to other big names, we just have to recall their latest commentary around their cloud business, where they plan to introduce their own AI chip, which could potentially rival Nvidia down the road. The introduction of their AI agents is also increasing efficiency in their online retail. I think all of that presents great opportunities for 2025.”

While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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