We recently published a list of Top 10 Stocks Everyone Is Talking About These Days. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other top stocks everyone is talking about these days.
Major AI stocks are wavering as investors assess the impact of decreasing hardware costs and their effects on technology spending. T. Rowe Price’s Tony Wang said in a latest program on CNBC that while Mag. 7 companies are still strong, there are opportunities to look elsewhere as the technology-related gains broaden out.
“You saw the Mag. 7 really dominate the last two years, and I think going into this year, I think that there’s a lot of concern over the capex that’s being spent. I mean, they’re kind of becoming fundamentally different businesses in some respect in terms of the capital intensity. And then on top of that, you had kind of more inline reports, and so when you’re spending a lot of capex and you’re coming in line, I think that tends to set up for a tougher stock reaction. And so, you know, I think there’s other areas in tech that naturally things will broaden out to, like things that have more bottoming fundamentals and can have a little bit easier setup. So I think that, you know, we’re looking for more broadening, and I think that these are still very good companies and still like a core part of tech portfolios, but I think there’s opportunity elsewhere as well.”
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For this article, we picked 10 stocks currently trending on latest news and analyst ratings. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Number of Hedge Funds Investors: 286
Joshua Ketter from Spreetail recently said while talking to Schwab Network that Amazon.com, Inc. (NASDAQ:AMZN) smart home devices are still not up to consumer expectations and it will take time for the company to catch up.
“Amazon, to a certain extent, they’re kind of a victim of their own success. They’ve set a very high bar and have very high expectations with consumers, and I personally believe that they’re not going to quite get there with this release. I think over the course of time they’ll get there. They really do have a right to win in this space, though. To your point, I have over 50 devices in my house—Amazon Alexa connects all of those, but it doesn’t do a good job at understanding which ones I actually wanted to turn on or off unless I’ve named it just right. And so that kind of nuance in language is really important, and you see that ChatGPT has made tremendous strides in that area. However, if I look at some of Amazon’s own current AI models, they’re not quite there. They’re about a year behind, and so I do think they’ll get there eventually, but if they’re using their current AI capabilities, I do think it’s going to be limited. And again, I think the challenge is going to be the consumer is going to have the expectations that this is another kind of Tony Stark Jarvis-type thing or a Star Trek Central Computer, and that they’ll be able to do anything, right? And the moment you start asking questions and it fails, I think it can be challenging for Amazon to meet consumers’ expectations.”
