10 Best Stocks to Buy After Democrats’ Election Sweep, According to CIBC

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4. Meta Platforms (NASDAQ:META)

Number of Hedge Fund Holders: 254

Market Cap: $1.66 trillion

Meta’s advertising business kept growing quickly while the company spends on artificial intelligence. Third-quarter revenue rose 26% to $64.6 billion, driven by a 14% jump in the average price of an ad and a 10% increase in ads delivered.

Meta guided fourth-quarter revenue to $73 billion to $76 billion, which would extend the run. Capital expenditures were $34.91 billion in the quarter. Cash flow from operations was $32.79 billion in the third quarter, and the company ended it with $82.45 billion in cash and marketable securities. Revenue in the United States and Canada grew especially fast, and the company said it expects to spend heavily on data centers to keep up with demand for its AI products. It also expects losses at Reality Labs, its virtual and augmented reality segment, to decline compared with 2025.

The spending has a goal. Founder Mark Zuckerberg said the quarter delivered major milestones toward “personal superintelligence for everyone,” including the launch of Muse and Muse Wonder, the company’s first frontier model. On the messaging side, our look at WhatsApp as a business beyond advertising goes deeper.

3. Microsoft (NASDAQ:MSFT)

Number of Hedge Fund Holders: 273

Market Cap: $3.97 trillion

Microsoft says cloud demand still exceeds its available supply. Azure revenue grew 48% in the fiscal first quarter, ahead of the company’s own expectations, even though delays at outside data-center providers held it back. Microsoft Cloud revenue reached $63.9 billion. Chief Financial Officer Amy Hood said results beat expectations on revenue, operating income and earnings per share.

The best evidence is the order book. Commercial remaining performance obligation, the value of signed contracts not yet recognized as revenue, rose 73% to $677 billion. Management guided Azure growth of 49% to 50% in constant currency for the fiscal second quarter.

Other parts of the business are helping. Stronger GitHub Copilot adoption lifted the commercial Microsoft 365 cloud business, and revenue at Foundry, the service for building AI applications, more than tripled from a year earlier as the company found more capacity in its existing servers and chips. Operating margin increased slightly to 50%, and cash flow from operations rose 29% to $58 billion. You might also be interested in reading our piece on whether security bundles can lift Microsoft’s profit per customer.

2. Alphabet (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 275

Market Cap: $3.54 trillion

Google Cloud was the standout of Alphabet’s third quarter. Consolidated revenue was $127.6 billion, up 25%. Cloud revenue more than doubled, up 103% to $30.7 billion, and the segment’s operating margin climbed to 36.2%, so the growth is profitable as well as fast. Operating income there was $11.1 billion, more than triple a year earlier.

Behind it sits a backlog of $561 billion in signed cloud contracts, with just over half expected to turn into revenue within 24 months. Part of the strength came from sales of Google’s custom TPU chips, which customers can buy as complete systems, and management expects those sales to keep scaling in the fourth quarter before a meaningful ramp in 2027.

The rest of the company is healthy. Chief Executive Sundar Pichai said Alphabet has reached a half-trillion-dollar annual run rate, and the Gemini app now has one billion users. Pichai said the company’s full-stack approach to AI is driving momentum across the business, and Google Services revenue rose 11%. Our analysis of whether Alphabet’s valuation reflects Waymo’s potential takes up one more piece of that story.

1. Amazon (NASDAQ:AMZN)

Number of Hedge Fund Holders: 369

Market Cap: $2.93 trillion

Amazon Web Services is speeding up at a size where most businesses slow down. AWS sales grew 39.3% to $46.0 billion in the third quarter, its fastest growth in nearly five years and its sixth straight quarter of faster growth.

Chief Executive Andy Jassy backed it with a forecast of AWS growth above 40% in both 2027 and 2028. The support is a $578 billion backlog of signed commitments that is growing at triple-digit rates and spread across many customers, according to Jassy. New AWS agreements in the quarter included Meta, OpenAI, NVIDIA and Salesforce, and tens of thousands of customers now use its AgentCore service to build AI agents. Amazon also made its custom Trainium AI chips easier to adopt by letting developers run existing PyTorch code on them without rewriting it.

The rest of the company is getting more profitable too. Operating margin reached 13.9%, the highest in Amazon’s history, with Jassy saying broader selection and faster delivery are winning more retail market share at improving margins. The spending behind all this is the subject of our look at whether Amazon’s cash engines can fund its robotaxi bet.

READ NEXT: Amazon (AMZN): Can Custom AI Silicon Outpace Capex Commitments? and Microsoft vs. Amazon: Is AMZN’s AI Growth Being Undervalued by Investors?

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