Amazon.com, Inc. (AMZN): AWS and Retail Margin Growth Drive Bullish Outlook
We recently published a list of . In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other AI news and ratings too important to miss.
Artificial intelligence is rapidly evolving and is shaping industries and global competition. Companies are developing advanced models, governments are exploring policies to regulate AI, and concerns over security and innovation keep growing. As AI becomes more integrated into everyday life, discussions around its impact, ethical considerations, and future developments remain at the forefront.
Kevin Weil, OpenAI's Chief Product Officer, discussed the company's AI advancements and its increasing engagement with the U.S. government. He highlighted the evolution of AI from simply answering queries to actively performing tasks in the real world and said that the current year is significant for agents. OpenAI recently introduced 'Operator,' an AI agent capable of web-based tasks such as ordering groceries and filling out forms, with more agent-driven tools set to launch soon.
Weil also addressed concerns over China's DeepSeek AI and acknowledged its technological improvements but emphasized that AI should align with democratic values rather than authoritarian ones. He stated that AI competition extends beyond companies to a broader U.S. and China rivalry. OpenAI has accused DeepSeek of intellectual property theft, but Weil maintained that the company's focus remains on developing the most advanced models and ensuring U.S. leadership in AI.
Regarding infrastructure, Weil pointed to OpenAI's $500 billion Stargate initiative, which is aimed at expanding U.S. energy and semiconductor capabilities to support AI growth. He also highlighted new government partnerships, including ChatGPT Gov, which is a secure AI model for federal agencies.
On the topic of open-source competition, Weil talked about OpenAI's dual approach, which includes staying ahead with increasingly advanced models and building practical AI products that improve efficiency. He also acknowledged SoftBank's role as a key partner in OpenAI's expansion, especially in AI infrastructure investments.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey's database of 900 hedge funds.
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 275% since May 2014, beating its benchmark by 150 percentage points ().
A customer entering an internet retail store, illustrating the convenience of online shopping.
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) integrates AI into shopping, entertainment, and operations while driving innovation through investments, AWS partnerships, and Tranium.
On January 30, Bernstein raised Amazon's price target from $265 to $280, maintaining an Outperform rating. The firm expects AWS to keep accelerating in Q4, while retail will benefit from a strong holiday season and record viewership of Thursday Night Football. Despite slight adjustments to AWS and retail revenue estimates due to FX headwinds, the firm anticipates operating leverage in both AWS and retail, with margins improving. Overall, the company is expected to meet or exceed the higher end of management's guidance for Q4.
Overall, AMZN ranks 1st on our list of AI news and ratings too important to miss. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
20 minutes ago
- Yahoo
DocuSign: Questions Around Growth Remain
DocuSign posted revenue and earnings growth, beating estimates. The company's free cash flow fell slightly, and its full-year forecast underwhelmed investors. DocuSign has steadied itself, but investors are not yet seeing clear answers to the question of how growth can accelerate from here. 10 stocks we like better than Docusign › Here's our initial take on DocuSign's (NASDAQ: DOCU) financial report. Metric Q1 FY25 Q1 FY26 Change vs. Expectations Revenue $709.6 million $763.7 million 8% Beat Earnings per share (adjusted) $0.82 $0.90 10% Beat Non-GAAP billings $709.5 million $739.6 million 4% n/a Free cash flow $232.1 million $227.8 million -2% n/a There was a lot to like about DocuSign's latest quarter. Revenue and adjusted earnings per share were up 8% and 10%, respectively, topping Wall Street expectations. GAAP (generally accepted accounting principles) gross margin came in at 79.4%, up 5 basis points from a year ago, and the company posted solid free cash flow of $227.8 million. DocuSign also surpassed the 10,000 Intelligent Agreement Management customer threshold during the period. Billings rose 4% in the quarter, but DocuSign warned that it expects momentum to fade as the year goes on. For fiscal 2026, DocuSign is now forecasting total billings of $3.285 billion and $3.39 billion, down from its prior guidance for $3.3 billion to $3.4 billion. The billings revision, though slight, highlights the biggest challenge facing DocuSign right now. The business is healthy and profitable, but investors are worried about where growth will come from. The company is forecasting full-year fiscal 2026 revenue of $3.15 billion to $3.16 billion, which, at the midpoint, would represent just a 5% gain from last year's $2.98 billion in total revenue. DocuSign is putting its cash to work for investors, announcing a new $1 billion repurchase program. But with the company's share count up nearly 6% in just the last three years, much of the buyback would only serve to offset share-based compensation that has added to the float. Investors were more focused on the look ahead than the results. DocuSign shares were down 15% in aftermarket trading following the release but ahead of the company's call with investors. CEO Allan Thygesen, who has been on the job since October 2022, called the results "an important quarter for Docusign's long-term transformation," highlighting the company's "ambitious product roadmap." Expect investors to press Thygesen for specifics about how the transformation is going and when it will translate into real, sustained growth. DocuSign invented its category and continues to hold strong in its core business, even up against competition from Adobe (NASDAQ: ADBE) and Microsoft (NASDAQ: MSFT), which can incorporate e-signatures into broader offerings. But Wall Street is forward-looking. Shares of DocuSign are up nearly 75% over the past year as an initial response to Thygesen's turnaround ambitions. Until investors gain confidence that DocuSign has found a formula to expand its core offering and generate significant revenue growth, the stock could face limits on its ability to accelerate higher from here. Full earnings report Investor relations page Before you buy stock in Docusign, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Docusign wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Docusign, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. DocuSign: Questions Around Growth Remain was originally published by The Motley Fool Sign in to access your portfolio
The Hill
23 minutes ago
- The Hill
Wall Street gains ground following a solid jobs report
NEW YORK (AP) — Stocks rose on Wall Street Friday following a better-than-expected report on the U.S. job market. The S&P 500 index rose 0.9% in afternoon trading. The benchmark index remains on track to notch a second consecutive winning week. The Dow Jones Industrial Average added 344 points, or 0.8% as of 1:22 p.m. Eastern. The Nasdaq composite rose 1.2% The gains were broad, with nearly every sector in the benchmark S&P 500 rising. Technology stocks, with their outsized values, gave the market its biggest boost. Chipmaker Nvidia jumped 1.6% and iPhone maker Apple rose 1.4%. Tesla rose 5.5%, regaining some the big losses it suffered on Thursday when Trump and Musk sparred feverishly on social media. Circle Internet Group, the U.S.-based issuer of one of the most popular cryptocurrencies, rose 43%. That adds to its 38.7% gain from Thursday when it debuted on the New York Stock Exchange at $60 per share. U.S. employers slowed their hiring last month, but still added a solid 139,000 jobs amid uncertainty over President Donald Trump's trade war. The closely-watched monthly update reaffirmed that the job market remains resilient, despite worries from businesses and consumers about the impact of tariffs on goods going to and coming from the U.S. and its most important trading partners. 'It looks like, for now, everything is kind of running smoothly,' said Chris Zaccarelli, chief investment officer for Northlight Asset Management. 'Investors see that as a positive, but we also haven't seen the full effect of tariffs yet.' President Donald Trump's on-again-off-again tariffs continue to weigh on companies. Lululemon Athletica plunged 20.2% after the maker of yoga clothing cut its profit expectations late Thursday as it tries to offset the impact of tariffs while being buffeted by competition from start-up brands. Lululemon joins a wide range of companies, from retailers to airlines, who have warned investors about the potential hit to their revenue and profits because of tariffs raising costs and consumers potentially tightening their spending. Hopes that Trump will lower his tariffs after reaching trade deals with other countries have been among the main reasons the S&P 500 has rallied back so furiously since dropping roughly 20% from its record two months ago. It's now back within 2.5% of its all-time high. The economy is already absorbing the impact from tariffs on a wide range of goods from key trading partners, along with raw materials such as steel. Heavier tariffs could hit businesses and consumers in the coming months. The U.S. economy contracted during the first quarter. Recent surveys by the Institute for Supply Management, a trade group of purchasing managers, found that both American manufacturing and services businesses contracted last month. On Tuesday, the Organization for Economic Cooperation and Development forecast 1.6% growth for the U.S. economy this year, down from 2.8% last year. The uncertainty over tariffs and their economic impact has put the Federal Reserve in a delicate position. 'All things being equal, you can clearly see they are on hold,' Zaccarelli said. The central bank is holding its benchmark interest rate steady as it worries about tariffs reigniting inflation. It fought hard, using interest rate increases, to ease inflation rates back toward its target of 2% and rates have been hovering just above that level. The Fed has been hesitant to cut interest rates in 2025 after trimming rates three times late last year. While lower interest rates can give the economy a boost, they can also push inflation higher. That could be especially damaging if import taxes are also raising costs for businesses and consumers. Wall Street expects the central bank to hold rates steady at its June meeting, but traders are forecasting that it will have to cut interest rates later this year in an effort to prop up the economy. In the bond market, Treasury yields made significant gains. The yield on the 10-year Treasury rose to 4.49% from 4.39% late Thursday. The two-year Treasury yield, which more closely tracks traders' expectations for what the Federal Reserve will do with overnight interest rates, rose to 4.04% from 3.92% late Thursday. Markets in Asia were mixed and markets in Europe were were mostly higher. ___ AP writers Elaine Kurtenbach and Matt Ott contributed to this report.
Yahoo
23 minutes ago
- Yahoo
Centuri Holdings (CTRI) Surged This Week. Here is Why.
The share price of Centuri Holdings, Inc. (NYSE:CTRI) surged by 9.74% between May 29 and June 5, 2025, putting it among the Energy Stocks that Gained the Most This Week. Let's shed some light on the development. A close-up of an electrical power line with a bright blue sky in the background, highlighting the company's selection of electricity and natural gas services. Centuri Holdings, Inc. (NYSE:CTRI) is a strategic utility infrastructure services company that partners with regulated utilities to build and maintain the energy network that powers millions of homes and businesses across the United States and Canada. Centuri Holdings, Inc. (NYSE:CTRI) continues to surge after the company announced $350 million in new customer awards in late May, reflecting strong demand for the company's infrastructure solutions across North America. The awards span the United States and include work supporting electric and gas infrastructure modernization, water relocation, utility distribution, and renewables. This comes after Centuri Holdings had already announced nearly $490 million in multi-year customer awards earlier this year. The share price of Centuri Holdings, Inc. (NYSE:CTRI) has gained almost 23% over the last month. While we acknowledge the potential of CTRI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
