Billionaire Louis Bacon’s 10 Stock Picks with Huge Upside Potential

8. Amazon.com Inc. (NASDAQ:AMZN)

Moore Global Investments’ Stake: $212.03 million

Number of Hedge Fund Holders: 339

Average Upside Potential as of May 2: 24.83%

Amazon.com Inc. (NASDAQ:AMZN) is a global e-commerce and technology giant. It operates through its North America, International, and Amazon Web Services (AWS) segments. It engages in retail sales, cloud computing, digital streaming, and AI. Its products and services include e-commerce, cloud infrastructure, digital content, and consumer electronics.

In Q1 2025, AWS generated $29.3 billion in revenue, which was an improvement of 17% year-over-year. AWS is experiencing growth across both its traditional cloud offerings and its GenAI business. Companies of all sizes are increasingly relying on AWS to modernize their infrastructure, such as Adobe and Uber. The driver for this growth lies in the fact that over 85% of global IT spending remains on-premises, which leaves a massive potential for future cloud migration.

Amazon.com Inc. (NASDAQ:AMZN) is investing in AI infrastructure and services at every level of the stack. This is exemplified by the custom AI chip Trainium 2, which offers compelling price-performance advantages for model training. Wedbush has reiterated an Outperform rating on the stock and raised its price target to $235 from $225 as Amazon delivered solid Q1 2025 results amid the tariff threat.

Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:

“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. In Consumer Discretionary, Amazon.com, Inc. (NASDAQ:AMZN) reported strong third-quarter results. Revenue increased by double digits, led by growth in advertising and Al products, while the company’s operating margins also hit an all-time high of 11%. The key reasons for the higher margins were that its international e-commerce operations turned profitable, and there was faster growth in its high-margin cloud-computing business.”