Amazon.com Inc. (AMZN) has taken the top spot as the most popular stock among hedge funds by the end of the second quarter, according to data from SEI Novus. This marks a significant shift in investor sentiment, as Amazon gained 13 new hedge fund investors during the quarter, surpassing Microsoft Corp. (MSFT) which had held the top position for over two years. Microsoft experienced a net loss of six hedge fund investors during the same period.
The rise of Amazon to the top of hedge fund preferences comes at a time when the company is making significant strides in the realm of artificial intelligence. Amazon CEO Andy Jassy recently highlighted the impact of their generative AI assistant, Amazon Q, which has achieved remarkable success. Amazon Q has saved the company a substantial $260 million and 4,500 developer-years of work, demonstrating Amazon’s dedication to innovation and efficiency. This AI tool has significantly reduced software upgrade times, showcasing the power of AI in streamlining operations.
Further solidifying its position as an AI leader, Amazon has partnered with Accenture to launch the Accenture Responsible AI Platform powered by Amazon Web Services (AWS). This platform aims to empower organizations to securely and efficiently adopt and scale AI, emphasizing Amazon’s commitment to responsible AI adoption.
The growing interest in Amazon among hedge funds can also be attributed to the company’s recent financial performance. Eric Jackson, founder of EMJ Capital, who sold his stake in Amazon in July, believes that the e-commerce giant’s shares are currently undervalued. Jackson highlighted the fact that Amazon’s shares are trading at an all-time low multiple on a five-year forward price/earnings basis, despite strong earnings reported in recent weeks. This suggests that investors may be overlooking the company’s potential for future growth.
The shift in favor of Amazon among hedge funds underscores the company’s strong performance, its commitment to innovation, and its leadership in the burgeoning field of artificial intelligence. As Amazon continues to invest in AI and other transformative technologies, its popularity among investors is likely to remain strong in the years to come.
