Following the stock picks of billionaire investors can be a good way to find winners in the stock market. After all, these investors acquired their wealth through a successful career of making money. above-average returns for their customers.
Three Motley Fool contributors identified three promising stocks that some of the world’s billionaire investors have been buying in the first quarter of 2024. Here’s why Amazon (NASDAQ:AMZN), Open door technologies (NASDAQ: OPEN)And Sea Limited (NYSE:SE) could be interesting buys right now.
Artificial intelligence is the next growth engine
Jennifer Saibil (Amazon): Amazon stock has generated incredible returns over the past three decades, but there’s much more to come from this perennial winner. That’s why it’s no surprise that it’s owned by several billionaire investors.
Some examples are Israel Englander of Millennium Management, who owns 9.9 million shares at the end of the first quarter, and Ken Griffin of Citadel Advisors, who owns 6.6 million shares.
Amazon is the second largest American company by sales and the fifth largest by market capitalization. But these billionaires know there’s a lot more to come.
The latest trend driving interest in Amazon stock is artificial intelligence (AI). Amazon announced major generative AI initiatives last year and is working with big names in AI like Nvidia and Anthropic to develop fundamental models (GPT-4 is a famous example) and offer high-level generative AI services.
Most of the discussion about Amazon’s generative AI tools is related to Amazon Web Services (AWS), the company’s cloud computing business. These tools help AWS customers with a wide range of services that make running their business easier and faster, from creating their own Large Language Models (LLMs) to plug-in tools for the technology layman.
Amazon is also using AI in its e-commerce segment – in fact, it has been for decades. The tech titan has collected millions of data points on its shoppers’ habits and can offer targeted product recommendations. It also uses AI throughout its delivery network to pack and fulfill orders in the fastest and most cost-effective way.
Amazon deploys AI to deliver similarly targeted results to advertisers, and third-party clients can use its advertising platform to reach customers already looking to buy their products. Amazon recently launched an ad-supported streaming tier for its Prime streaming viewers, and is using the power of AI to work with its advertising clients across video channels.
There’s plenty of room for Amazon to run, and the new ventures present huge growth opportunities for the incredibly profitable tech giant.
Can this real estate stock make a comeback?
Jeremy Bowman (Opendoor Technologies): Opendoor Technologies has mostly been a disappointment since going public in 2020 through a special purpose acquisition company. In fact, that’s probably an understatement.
Opendoor is now down…
Discover more from The Times Of Update
Subscribe to get the latest posts sent to your email.
