Sep 24, 2024 at 4:37AM
**Key Points:**
- Amazon is expanding its Buy With Prime service through partnerships and advertising.
- AWS is upgrading with competitive generative AI solutions.
- Amazon stock is attractively priced right now.
After Nvidia’s meteoric rise, some investors are unsure about its next move. While Nvidia could continue to soar, there's another stock billionaires are flocking to: Amazon (AMZN -0.74%). This AI powerhouse keeps improving, and high-profile investors are taking notice.
**Billionaires Are Buying**
Prominent billionaires have been adding Amazon to their portfolios. Ray Dalio increased his stake by 1.6 million shares (a 153% rise) in Q2, while Ken Griffin bought over a million shares, boosting his holdings to nearly 7.7 million (a 17% increase).
While billionaire portfolios often differ from the average investor’s, Amazon appeals to a broad range of investors.
**Why Amazon Appeals to Everyone**
Amazon combines the innovation of AI with the reliability of an established tech giant. It dominates e-commerce and cloud computing, making it a versatile stock suitable for various portfolios.
Amazon’s **Buy With Prime** service is driving growth for third-party merchants, with a 45% increase in sales and a 16% boost in revenue per shopper this year. The company’s advertising business, its fastest-growing segment, complements Buy With Prime, helping merchants draw customers to their websites.
Additionally, Amazon recently partnered with PayPal to expand checkout options, further boosting its appeal to merchants and consumers alike.
**AI-Driven Growth in AWS**
Amazon’s generative AI solutions are propelling AWS to the forefront of the AI race. AWS powers much of Amazon’s growth, with deals from companies like Oracle, Intel, and NXP Semiconductors pushing AWS to an 18% growth rate in Q2 2024. Despite inflationary pressures, Amazon’s AI-driven cloud services are poised for continued growth.
**Amazon Stock: Still a Bargain**
Trading at a three-digit price after its 2021 stock split, Amazon remains accessible for investors. Its P/E ratio is near its lowest in years, and the stock is up 26% this year.
Before investing in Amazon, though, consider checking out Motley Fool's top 10 stock picks—Amazon didn’t make their current list, but it still remains a strong contender for long-term growth.
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