We recently compiled a list of the 12 Most Widely Held Stocks by Individuals in 2025. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against the other stocks widely held by individuals in 2025.
Individual investors, often called retail investors, typically invest their personal capital directly into the stock market, driven primarily by personal research, news sentiment, social media trends, or recommendations from peers. They often favor stocks of recognizable brands or companies whose products and services they use regularly, as well as growth stocks perceived to offer high return potential. While their success varies widely (often marked by emotional decision-making and mixed results) monitoring retail investor trends can be valuable, as these investors collectively have the power to significantly influence stock prices and market volatility. Understanding where retail attention is focused can provide early signals of market shifts, speculative bubbles, or emerging investment opportunities. Just to recall two recent instances when retail investors successfully short-squeezed and caused billions of losses to the smartest hedge funds in the world – as they say, even the less informed parties may occasionally win big, and it is, therefore, important to be aware of their tendencies and trends.
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The type of stocks most widely held by individuals has been changing over time, from consumer-centered brands that were popular in the ’80s and ’90s to popular dot-com names in the 2000s, and finally to technology stocks in the 2010s, as retail investors had firsthand experience with their products and platforms. One thing is certain – retail investors are often the last to jump on the ship, and periods of active inflow of retail money into stocks coincide with market peaks. A similar situation happened in the last two years, as the majority of the returns of the US stock market have been driven by a handful of 7–8 stocks with primary exposure to the AI megatrend – as you will see below, many of these stocks are now among the most widely held by individuals. It is no surprise that at this exact moment, the Magnificent 8 category, which confidently outperformed the whole market in the last two years, is finally lagging behind.
It should be noted that retail investors are not always wrong; in fact, you can frequently find quite promising high-growth names among those preferred by individuals. This category of investors often flocks together on social media platforms and actively shares knowledge with each other, meaning that the latest technological breakthroughs and inventions are already in their sights. In the current market, with uncertainties and fear looming from all directions (recall the tariff wars expected in April, large public spending cuts, layoffs, and Medicare/Medicaid threats), the “smart money” has been very cautious with US stocks. In fact, there has been a noticeable rotation of money from US stocks to the less overvalued foreign markets, like Germany and China, which have been using stimulus to fuel growth. With the US market becoming less favored by institutional investors, retail investors could enter the spotlight again and decide who the major winners will be.
This is particularly relevant as the modern investing philosophy has slowly drifted away from the rigid value-investing approach, which favors cheap, undervalued stocks, toward a preference for higher-growth stocks, which depend on momentum and often trade at high valuations for prolonged periods. The key takeaway for readers is that market winners are often not the cheap and undervalued stocks, but the stocks that gain the spotlight and become a magnet for money.
A customer entering an internet retail store, illustrating the convenience of online shopping.
Our Methodology
For this article, we used the Robinhood Investor Index (which shows the most popular stocks on the investing platform Robinhood) and the Yahoo Finance Most Active Stocks screener to find a list of stocks most widely held by individual investors. We then compare the list with our proprietary database of hedge funds’ ownership, as of Q4 2024 and include in the article the top 12 stocks with the largest number of hedge funds that own the stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) is a global technology company specializing in e-commerce, cloud computing, AI, and digital services. Its core business includes Amazon.com, one of the world’s largest online marketplaces, and AWS, a leading provider of cloud computing solutions. The company also operates Prime Video, Amazon Music, Kindle, Audible, and Alexa, expanding into streaming, smart home technology, and digital content. AMZN has a growing presence in logistics, retail automation, and artificial intelligence, with investments in autonomous delivery, AI-powered recommendations, and cashier-less stores.
Amazon.com, Inc. (NASDAQ:AMZN) reported strong Q4 2024 results, with revenue reaching $187.8 billion, reflecting a 10% YoY increase, while operating income surged 61% to $21.2 billion. The North American segment posted 10% revenue growth, while international markets grew 9% when excluding currency fluctuations. AWS continued to perform well, expanding 19% YoY to an annualized revenue run rate of $115 billion. The company’s strategy of broadening selection, lowering prices, and enhancing convenience contributed to strong unit growth that outpaced revenue growth. Third-party sellers played a significant role in this success, accounting for 61% of total items sold in 2024 – the highest share in the company’s history.
Amazon.com, Inc. (NASDAQ:AMZN) also significantly expanded its delivery network, increasing same-day delivery sites by more than 60% in 2024, now covering over 140 metro areas. In advertising, revenue grew 18% YoY to $17.3 billion in Q4, pushing the segment’s annual run rate to $69 billion – more than double its size from four years ago. AI development remains a key focus, with around 1,000 generative AI applications either completed or in progress. Looking ahead to 2025, AMZN plans to continue investing in fulfillment and transportation infrastructure, prioritizing same-day delivery facilities, improvements in its inbound logistics network, and further automation to enhance delivery speed while lowering costs.
Overall AMZN ranks 1st on our list of the 12 most widely held stocks by individuals in 2025. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.