We recently compiled a list of the 10 Hottest Large-Cap Stocks Right Now. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against the other large-cap stocks.
This article will analyze several prominent large-cap stocks that are currently exerting significant influence on market dynamics. These stocks are currently considered “hot” because their stock prices are relatively more volatile, and they draw the attention of a large pool of investors. These stocks are the most talked about, with high trading volumes, large price actions and overall hot atmosphere surrounding them currently.
What to watch when it comes to Large-Cap Stocks?
Large-Cap Stocks are usually household names, stocks which even the non-investing population has heard of. They are considered safer investments than small-cap stocks, so they will naturally bring a larger volume when it comes to trading.
Price change over the past week is the first parameter we will analyze when talking about the hottest Large-Cap Stocks. Another parameter which we will analyze is the volume of shares traded over the course of the past trading week. Even with Large-Caps, when investors and traders see large changes in volume, they could get spooked or could see an opportunity to jump in and aboard the train.
The first days of the new year, as well as the last days of the year gone, are usually very volatile. There are a lot of speculation and tax-loss harvesting going on, which affects the broader market dynamics. On the other hand, investors who took profit in 2024 are looking for new investments to start their new investment year strong. The New Year’s Day holiday also affects the trading continuity, further deepening the volatility. To see which firms kicked this year off in the red, you can check out the following article.
The Large-Caps listed here are all market titans, with market caps over $200 billion dollars.
A customer entering an internet retail store, illustrating the convenience of online shopping.
Amazon.com, Inc. (NASDAQ:AMZN)
Return: -0.62%
Amazon had a relatively good week compared to other stocks analyzed, closing only 0.62% below last week. Its shares witnessed a positive trend this week, meaning that investors started to pour their funds into this safe haven of a stock during the volatile start of 2025. Its volume didn’t show any spikes, which reflects consistency and investor confidence in this stock.
Amazon isn’t an online retailer that competes with Walmart. Amazon is a cloud computing and advertising company. Amazon is one of the obvious winners of the AI revolution because training large AI models requires massive computational power, which AWS provides through its high-performance computing infrastructure. AWS offers a comprehensive machine learning platform that simplifies the process of building, training, and deploying AI models. AWS’s customers prefer AWS over their in-house infrastructure because they can scale up or down instantly, rather than wrestling with the limited availability of NVIDIA’s GPU AI chips. These customers aren’t likely to switch due to high switching costs.
The total cloud market is expected to grow from $700 billion in 2024 to nearly $2400 billion in 2032. Amazon is a toll booth operator in the cloud computing and AI industries which is why Amazon’s CEO Andy Jassy said AI is a “really unusually large, maybe once-in-a-lifetime type of opportunity”.
Amazon is also an exciting investment opportunity because of its fast-growing advertising business. Amazon generated total advertising revenues of $14.3 billion during the third quarter, growing at a year-over-year rate of also 19%. Amazon will probably generate more than $60 billion in advertising revenue over the next 12 months. That’s 9% of the global digital advertising market. Google captures close to 28% of the global digital advertising market. Most investors don’t realize that Amazon’s advertising business is one third as big as Google’s and should be valued at close to $1 trillion.
Overall AMZN ranks 3rd on our list of the hottest large-cap stocks. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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.
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