1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Funds: 381
Amazon.com, Inc. (NASDAQ:AMZN) is one of the top stocks in Jim Cramer’s latest portfolio. In October, Cramer explained why he plans to hold on to the e-commerce and Cloud giant’s stock despite its relative underperformance over the past four years. Cramer said that Amazon.com, Inc. (NASDAQ:AMZN) remains one of the high-quality businesses and he is bullish on the stock for the long term. He said AWS growth above 20% would reinforce his bull thesis. Last month, Amazon.com, Inc. (NASDAQ:AMZN)’s results showed AWS rose 24% year over year in Q4.
“You need stocks that you can work for over long, long periods of time,” Cramer said at the time. “I am a huge believer that Amazon stock will eventually catch up with my judgment.”
Cramer said he likes Amazon.com, Inc. (NASDAQ:AMZN)’s plan to lay off thousands of workers to save money and use AI to boost efficiency. He said he learned a lesson after selling Alphabet shares on concerns about AI and regulatory risks and missing the stock’s strong rally later. He added that he would not repeat the same mistake with Amazon.com, Inc. (NASDAQ:AMZN).
“The bottom line dumping Alphabet was a huge mistake, and I’m not going to make the same mistake a second time,” Cramer said. “A gigantic company run by brilliant people figures out a way to win.”
Ironvine Capital Partners stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2025 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN)is one of the most successful companies ever built, yet with all its accomplishments, we believe its businesses are only growing in importance with the passage of time. Over the last three decades the company has established its position as an advantaged infrastructure provider in two huge markets: e-commerce and cloud computing. These physical investments make it difficult for competitors to meaningfully encroach on Amazon’s turf, while providing opportunities to layer high margin complementary offerings on top of the foundation. These add-on services have made the network more valuable to customers, encouraging greater usage and generating incremental revenue that can be reinvested to strengthen the underlying infrastructure.
Amazon’s leading e-commerce marketplace connects a massive customer base on one side with millions of third-party sellers on the other, providing umatched breadth and depth at competitive prices with a nearly effortless checkout process. Its increasingly dense fulfillment network enables faster delivery speeds at a lower cost than others. Efficiency efforts in the U.S. produced a 10% reduction in average travel distance for a package, with 10% fewer touches compared to 2024. As most readers can attest, the net result leads consumers to choose Amazon more often. Alongside this marketplace the company has methodically built an advertising business that reaches over a billion people each month and generates nearly $40 billion in annualized revenue (up 30% in the most recent quarter). Overall, Amazon’s retail profitability has inflected materially faster than we anticipated four years ago, and we expect the company’s best days still lie ahead…” (Click here to read the full text).
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.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
