5 Best Rebound Stocks To Buy Now

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

Number of Hedge Fund Holders: 252

YTD Price Change: -43.2%

Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle, Washington-based diversified technology company that is a leader in the e-commerce and cloud computing segments. The company is at the second position on our list of the 10 best rebound stocks to buy now.

Like conventional retail, the e-commerce industry has also come under pressure due to high inflation and an uncertain economic environment. Amazon.com, Inc. (NASDAQ:AMZN) is facing higher transportation costs that are straining the bottom line. Meanwhile, the weakness in consumer spending is hurting the company’s top line. However, Amazon.com, Inc. (NASDAQ:AMZN) is preparing itself for a rebound by growing its Amazon Prime membership beyond 200 million subscribers. By 2025–2026, the subscription business could have a $100 billion revenue base, greatly enhancing Amazon.com, Inc.’s (NASDAQ:AMZN) prospects for long-term capital gains. Furthermore, the Amazon Web Services (AWS) segment is also expected to continue reporting a double-digit increase in revenue in the coming quarters. Analysts think the softening in capital expenditure could enhance the company’s generation of healthy cash flows.

Here’s what Polen Capital said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“At an individual company level, the top three absolute contributors were Amazon.com, Inc. (NASDAQ:AMZN), ADP, and Autodesk. Amazon reported better-than-expected earnings during the quarter driven by robust earnings and margins in AWS, its cloud division. The company also posted positive numbers for advertising in the face of a tough environment for the sector.”