ChatGPT Stock Advice: Top 12 Stock Recommendations

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

Number of Hedge Fund Holders: 339

Amazon.com, Inc. (NASDAQ:AMZN) is an American multinational technology company that engages in e-commerce, online advertising, cloud computing, artificial intelligence, and digital streaming. It is one of the best companies to invest in, according to ChatGPT’s stock advice.

On May 1, the company declared financial results for the first quarter of fiscal 2025. It reported net sales of $155.7 billion, representing a 9% growth from the prior year. North America segment sales increased 8% year-over-year, while International segment sales were up 5%. Sales from the AWS segment surged by 17% compared to last year.

Amazon.com, Inc. (NASDAQ:AMZN)’s net income stood at $17.1 billion, or $1.59 per diluted share, improving from $10.4 billion, or $0.98 per diluted share, in Q1 2024. While earnings beat Wall Street estimates by 22 cents, the company’s cloud revenue growth and forecast operating income came below estimates, leaving investors disappointed.

The stock has plunged over 13% so far this year due to escalating trade wars. According to a report, about 18% of the products sold on Amazon.com, Inc. (NASDAQ:AMZN) are sourced from China, which underscores how the company is susceptible to recent tariffs declared by the Trump administration.

Despite the downtrend, Wall Street analysts maintain a bullish outlook for Amazon.com, Inc. (NASDAQ:AMZN), with a consensus Strong Buy rating and an average share price upside potential of nearly 30%. Following the earnings call, JMP Securities and Telsey Advisory Group reiterated their Market Outperform and Outperform ratings for the stock, and maintained their price targets of $240 and $235, respectively.

Amazon.com, Inc. (NASDAQ:AMZN) recently announced to spend over $4 billion on expanding its rural delivery network in the US by the end of 2026. This is expected to lead to faster shipments and drive up demand from smaller towns and the countryside.

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