From Nasdaq: 2024-04-15 05:00:00

Wall Street billionaires are selling down their positions in Nvidia while reinvesting in AI stocks like Amazon and Palantir Technologies. Amazon reported a 14% increase in sales to $170 billion in the fourth quarter, with strong momentum in advertising and retail, as well as cloud computing sales. Shares are currently trading at 3.4 times sales and are expected to grow at 11% annually over the next five years.

Palantir Technologies reported a 20% increase in revenue to $608 million in the fourth quarter, driven by growth in both commercial and government sales. The company is focused on rolling out its Artificial Intelligence Platform (AIP), which enhances its commercial platform Foundry and allows clients to develop generative AI applications. Wall Street expects Palantir to grow sales at 21% annually over the next five years, despite its current valuation of 23.5 times sales.

Investing in Amazon right now may not be the best option, as the Motley Fool’s Stock Advisor analyst team recently identified 10 stocks they believe could produce better returns in the coming years. While Amazon is a strong player in e-commerce, digital advertising, and cloud computing, its current valuation may not justify investing at this time. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.



Read more at Nasdaq: Billionaires Are Selling Nvidia Stock and Buying 2 Supercharged Artificial Intelligence (AI) Stocks Instead