Amazon: The Billionaire's Bet on AI and E-Commerce Dominance

Ladies and Gentlemen, let me tell you something: Amazon.com, Inc. (AMZN) is not just a stock; it's a juggernaut, a behemoth, and a billionaire magnet! With 40 billionaire investors and a total value of $33.04 billion in holdings, it's clear that the smart money is betting big on this tech titan. So, let's dive in and see why Amazon is the best fundamental stock to buy according to billionaires!

Why Billionaires Love Amazon

1. E-Commerce Dominance: Amazon holds a 40% market share in U.S. e-commerce, and it's not slowing down. In Q4 2024, North America segment sales grew 10% year-over-year to $115.6 billion. This is a company that knows how to sell stuff online, and it's only getting better!

2. Cloud Computing Leadership: AWS, Amazon's cloud division, is a profit machine. With 19% year-over-year revenue growth in Q4 2024 ($28.8 billion) and operating income surging 47% to $10.6 billion, AWS is outpacing competitors like Microsoft Azure and Google Cloud. And with AI integration, AWS is set to dominate the $2 trillion cloud market expected by 2030.

3. AI Investments: Amazon is not just riding the AI wave; it's making waves. The company plans to launch its Nova "reasoning" AI model by June 2025, aiming to compete with OpenAI and Anthropic while maintaining a cost leadership strategy. Current Nova models are already 75% cheaper than alternatives, giving AWS a competitive edge.

4. Financial Strength: Amazon's price-to-cash flow ratio is near a decade-low, making it a compelling entry point. Its 10.9% average cash flow ROIC over the past decade underscores efficient capital allocation. And with 40 billionaire investors and 339 hedge funds holding AMZN, the smart money is betting on Amazon's long-term growth.

The Billionaire Playbook

1. Druckenmiller's Bet: Billionaire investor Druckenmiller opened new positions in AMZN during Q4 2024. He bought 328,400 shares of Amazon, which now represent 1.9% of his portfolio. Druckenmiller sees the "incredibly bright" future of Amazon, and so should you!

2. Monness Analyst Brian White: Emphasized Amazon’s strategic AI investments and AWS’ 31% global cloud market share as growth catalysts. White believes that increased AI inferencing activity will boost AWS’s revenue, making Amazon a no-brainer investment.

3. UBS Analysis: UBS noted that while tariffs may slow U.S. growth in 2025, Amazon’s AWS and e-commerce resilience could mitigate risks. The firm highlighted Amazon’s "wide moat" (per Morningstar) as a key differentiator, making it a defensive yet growth-oriented stock.

The Bottom Line

Amazon is not just a stock; it's a growth engine, a tech titan, and a billionaire magnet. With its dominance in e-commerce, leadership in cloud computing, and strategic AI investments, Amazon is poised for long-term growth. So, do yourself a favor and BUY NOW! Don't miss out on this opportunity to own a piece of the future. Amazon is the best fundamental stock to buy according to billionaires, and it's time for you to get on board!