Amazon.com, Inc. (AMZN)
Technology stocks have enjoyed impressive returns, but artificial intelligence (AI) has cast doubt over which companies can sustain long-term success. Two tech stocks that stand out amid AI-driven uncertainty are IBM and Amazon.
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Some of these above-average stocks trade at a market-average valuation. Amazon and Alphabet are seeing huge demand for their cloud computing services.
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Amazon is seeing strong operating leverage in its e-commerce business and accelerating revenue growth at AWS. MercadoLibre is one of the most under-the-radar growth stories in retail.
Stanley Druckenmiller, a former hedge fund manager with an excellent track record, sold Sandisk and bought Amazon in the fourth quarter. Sandisk has benefited from an unprecedented supply shortage in memory chips, but the company lacks a durable economic moat.
Amazon's fundamentals are strong, with durable growth driven by many tech-enabled tailwinds. The business possesses numerous competitive strengths that solidify its position among rivals.
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