15 Best Stocks to Buy According to Hosking Partners

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

Hosking Partners’ Stake Value: $93,446,617

Percentage of Hosking Partners’ 13F Portfolio: 3.45%

Number of Hedge Fund Holders: 308

Amazon.com, Inc. (NASDAQ:AMZN) is strengthening its leadership in AI, driven by its AWS business, which achieved over 37% operating margins in Q1 and has consistently exceeded 30% for the past five quarters. Amazon’s first-quarter revenue grew by 12.5% year-over-year, and its adjusted EPS more than tripled. JPMorgan reiterated its Overweight rating on Amazon with a price target of $240, following an analysis of the U.S. e-commerce market. The research indicates that Amazon is on track to surpass Walmart as the largest U.S. retailer by 2024, with long-term e-commerce penetration potentially exceeding 40%.

This stock is highly favored by customers due to its extensive diversification in AI and cloud computing, making its products and services top choices among cloud users. During Amazon.com, Inc.’s (NASDAQ:AMZN) Q2 2024 earnings call, CEO Andy Jassy highlighted the rapid growth of the company’s AI business, driven by Amazon’s belief that no single AI tool can dominate the market. As a result, Amazon offers a wide range of AI tools, ensuring that developers and consumers can find the best fit for their needs.

The company’s impressive growth and rising investor interest are also fueled by the profitability of its Amazon Web Services (AWS) business. The increasing demand for AWS, particularly due to Amazon’s investments in generative AI projects, led to an 18.8% year-over-year increase in AWS revenue in the second quarter.

Diamond Hill Select Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:

“Among our top individual contributors in Q2 were Amazon.com, Inc. (NASDAQ:AMZN), Texas Instruments and Mr. Cooper Group. Internet retail and cloud infrastructure company Amazon is benefiting from strong profitability, particularly in its Amazon Web Services (AWS) business. Shares also received a boost amid growing optimism around the demand for AWS as Amazon customers’ investments in generative AI projects continue growing.”

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