10 Stocks Moving on Buzzing News as Analyst Issues Strong Warning About AI Valuations

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1. Amazon.com Inc (NASDAQ:AMZN)

Number of Hedge Funds Investors: 335

Bill Baruch, Founder & President of Blue Line Capital, said in a recent program on CNBC that Amazon is one of the top names to own amid an attractive valuation and Cloud growth.

“The stock is trading at 25 times forward earnings right now, one of its lowest valuations ever. We expect AWS to reaccelerate, maybe around 19% year-over-year revenues, and profitability to accelerate. But what really got us yesterday to pull the trigger was that it tested the 200-day moving average on Friday and responded into yesterday. The broader market had another clean, constructive pullback. That’s been the trend—you pull back, you bottom out quickly, and then rally. I think the market in general is setting the stage for new record highs, maybe after today or tomorrow. We like to look at opportunities within that framework. So if Amazon.com Inc (NASDAQ:AMZN) gets out above 230, I think you’re also going to see those flows into a name that hasn’t done much this year. If it gets above 230, a lot of people are going to chase it. So I think it’s a really great backdrop here to be adding and increasing Amazon.com Inc (NASDAQ:AMZN). We were at a 4.5% position, and we’ve increased it to a 6% position”

Mairs & Power Balanced Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2025 investor letter:

“The Fund also started a new position in Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, where the company is well positioned to continue capturing market share in retail while also growing its market leading cloud business. The Fund took advantage of weakness in the stock during April to start the position as tariff news and a precipitous market decline provided an opportunity to build a position.”

While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.

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

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