5 Best Stocks To Buy For Grandchildren

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

Number of Hedge Fund Holders: 293

Amazon.com, Inc. (NASDAQ:AMZN) is a massive tech company that offers services and products related to e-commerce, cloud computing, digital streaming, and AI.

On January 25, Amazon.com, Inc. (NASDAQ:AMZN) announced that Amazon Web Services will invest $10 billion to construct two data center complexes in Mississippi. The company is looking to expand its operations in the state and boost the economy by creating new jobs.

According to Insider Monkey’s database, 293 hedge funds had investments in Amazon.com, Inc. (NASDAQ:AMZN)’s stock in Q4, up from 286 in the previous quarter. 

Amazon.com, Inc. (NASDAQ:AMZN) was mentioned in Polen Capital’s fourth quarter 2023 investor letter. Here is what it said:

“For the full year, the top relative and absolute contributors were Amazon.com, Inc. (NASDAQ:AMZN), Salesforce, and ServiceNow. Amazon shares appreciated 88% in 2023, driven primarily by rapidly expanding operating profit margins and free cash flow growth. After the pandemic, Amazon experienced a period of inefficiency and overinvestment in its distribution and logistics infrastructure. Amazon is now leveraging these investments as growth returned to its e-commerce business in 2023 after a highly unusual 2022. At the same time, Amazon’s rapidly growing and high-margin advertising business is contributing strongly to the entire company’s operating profit growth. The AWS (Amazon Web Services) cloud infrastructure and services business continued to slow in 2023 as customers anticipating a more difficult economic environment looked to save money on their cloud spend, but these cloud spending optimizations began to stabilize in the second half of 2023. We now expect customer interest in generative AI will begin to contribute to growth.”