5 Best Stocks To Buy Now According To Quant Billionaires

4. Amazon.com (NASDAQ: AMZN)

The e-commerce platform Amazon.com (NASDAQ: AMZN) is among the 10 best stocks to buy now according to quant billionaires. Two Sigma increased its position by 83% in Visa during the December quarter to 131,911 shares. However, Amazon’s stock price underperformed during the first quarter of this year due to a broader correction in tech stock prices.

Mairs & Power, an investment management firm, stated in a Q4 investor letter that Amazon’s rising margins and advertising business are among the catalysts. Here is what Mairs & Power stated:

“We did acquire AMZN in the fourth quarter. But not owning it till then cost the Fund in performance relative to the S&P 500 TR Index. We had held off taking a position in Amazon largely due to concerns about the company’s slim margins. But in 2020, we saw its core margins nearly double as more consumers shopped online, which in turn led to greater utilization and route density within Amazon’s delivery network. In addition, Amazon’s advertising business, which represents a small portion of its overall sales, has been growing quickly. Advertising could become the third leg of growth for the company along with e-commerce and Amazon Web Services. In short, Amazon checks all of our boxes — it has a strong management team, great growth prospects, and a strong competitive advantage. And last year, we initiated our position at an intriguing valuation.”