5 Hedge Fund Favorites with Strong Setup in 2026

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

Amazon.com, Inc. (NASDAQ:AMZN) earns a place on our list of the 14 hedge fund favorites with strong setup in 2026.

As of April 3, 2026, 92% of covering analysts maintain a constructive stance on Amazon.com, Inc. (NASDAQ:AMZN). The consensus price target of $285.00 implies over 35% upside. This indicates that analysts remain highly bullish on Amazon’s scale and its ability to drive additional revenue from its existing platforms.

On March 13, 2026, BofA Securities reaffirmed its $275 price target and “Buy” rating on Amazon.com, Inc. (NASDAQ:AMZN) in response to modifications to the company’s Prime Video ad-free tier.

Amazon.com, Inc. (NASDAQ:AMZN) revealed that on April 10, it will not only rename the ad-free service in the United States as Prime Video Ultra but also increase the monthly cost from $2.99 to $4.99, while offering a $45.99 yearly plan.

Accordingly, with over 130 million monthly ad-supported viewers in the United States and 315 million worldwide, BofA calculated that if around 20% of viewers choose the ad-free tier, the adjustments may result in yearly incremental sales of up to $780 million.

The firm also stated that the development might encourage growth in subscriptions for Amazon.com, Inc. (NASDAQ:AMZN) while reducing the likelihood of a larger Prime fee increase in 2026.

Amazon.com, Inc. (NASDAQ:AMZN) is a global technology company operating through multiple interconnected business units. While well-known as an online retailer, it is also a major player in cloud computing, digital streaming, and artificial intelligence.

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 the cheapest AI stock.

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