From Nasdaq:

Wall Street has seen a strong start to 2022 with record-high closes for the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite. The current bull market owes much of its success to the “Magnificent Seven” – the top seven publicly traded companies, including Nvidia, who have outperformed the benchmark S&P 500. However, billionaire investors are starting to sell off Nvidia shares as concerns about competition, operating headwinds, and regulatory restrictions loom.

Despite the selling trend among billionaire investors for many AI stocks, Amazon remains a popular buy. While there are risks of a potential U.S. recession affecting Amazon’s online retail sales, much of its revenue comes from fast-growing segments such as Amazon Web Services, advertising services, and subscription services. AWS particularly stands out as a high-margin segment with strong growth potential, making Amazon an attractive long-term investment for billionaire money managers.

Investors should consider whether to buy stock in Amazon, given its focus on high-growth segments like Amazon Web Services, advertising services, and subscription services for long-term value. While traditional fundamental metrics might not show Amazon as cheap, it presents a historically inexpensive multiple relative to future cash flow, attracting billionaire investors seeking promising long-term returns.



Read more at Nasdaq: Forget Nvidia: Billionaires Are Selling It and Buying This “Magnificent Seven” Stock Instead