We recently published a list of the 13 Best High Volume Stocks to Buy Now. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other best high volume stocks.
On May 9, BMO private wealth chief market strategist Carol Schleif joined CNBC’s ‘Squawk Box’ to discuss the latest market trends and the state of the economy. Reflecting on a market decline in April that reached a ~20% drop, Schleif noted that the market recovered and ended only 3% to 4 % down. She described investor reactions during that period as mixed: about 10% were very eager to buy, but another 10% were quite nervous, while the majority remained measured. She emphasized the important distinction between markets and the economy and noted that markets often move ahead of economic realities and quickly shift focus to new topics as part of their discounting mechanism. This is why markets serve as economic indicators and anticipate future developments.
She talked about how individual risk tolerance varies, with some younger clients adopting conservative strategies and some older clients favoring aggressive positions, especially in tech. Schleif acknowledged that tariffs are expected to rise from under 3% to ~10%, but despite this anticipation, she’s confident that markets and companies will adjust to the changes. She noted the unusual shift in US influence, which now extends beyond material control to more intangible domains, and described this shift in responsibility as significant and complex. Schleif also emphasized the value of globally diversified portfolios, which have been challenging to maintain during periods when the US market outperformed. However, she noted that such diversification, which includes fixed income and foreign equities, has provided better performance and protection year-to-date and helps investors weather volatility better than those concentrated solely in US assets.
We first used stock screeners to compile a list of stocks with high average 3-month volumes. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
Note: All data was collected on May 12.
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).
Is Amazon.com Inc. (NASDAQ:AMZN) the Best High Volume Stock to Buy Now?
A customer entering an internet retail store, illustrating the convenience of online shopping.
Average Volume (3-Month): 50.98 million
Number of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores. The company operates through three segments: North America, International, and Amazon Web Services/AWS. It also manufactures and sells electronic devices like Kindle, Fire tablets, and Fire TVs.
Stifel lowered the firm’s price target on Amazon to $245 from $248 on May 2 and kept a Buy rating. This was because of the company’s Q1 2025 results, which were better than expected despite AWS coming out marginally below expectations. The North America margins were also soft. Still, In Q1, AWS made $29.3 billion in revenue, which was up 17% year-over-year. This resulted in an annualized revenue run rate exceeding $117 billion for AWS.
The company’s AI business within AWS already has a multibillion-dollar annual revenue run rate and is experiencing triple-digit year-over-year growth. This can be exemplified by Amazon Bedrock, the company’s fully managed service for building GenAI applications, which continues to see iteration with the addition of foundation models like Anthropic’s Claude 3.7 Sonnet and Meta’s Llama 4.
Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. In Consumer Discretionary, Amazon.com, Inc. (NASDAQ:AMZN) reported strong third-quarter results. Revenue increased by double digits, led by growth in advertising and Al products, while the company’s operating margins also hit an all-time high of 11%. The key reasons for the higher margins were that its international e-commerce operations turned profitable, and there was faster growth in its high-margin cloud-computing business.”
Overall, AMZN ranks 1st on our list of the best high volume stocks to buy now. While we acknowledge the growth potential of AMZN, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
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