From Nasdaq: 2025-02-21 09:47:00

Warren Buffett’s Berkshire Hathaway is known for its consumer goods and insurance investments, but its largest position is actually in Apple. However, the company has been reducing its stake in Apple over the past year. Amazon’s Web Services (AWS) business is a major revenue driver, accounting for over $100 billion annually and majority of Amazon’s operating income. Amazon has been investing heavily in AI infrastructure, with a $4 billion investment in AI start-up Anthropic. This investment has led to significant growth in AWS revenue and operating margin, making Amazon a strong AI play.

Amazon’s operating profits have been improving and accelerating, with AWS playing a crucial role in the company’s overall picture. With a historically cheap valuation and the AI megatrend driving growth, Amazon presents a compelling buying opportunity. Analysts are issuing a “Double Down” stock recommendation for Amazon, highlighting the potential for significant returns. The Motley Fool has positions in Amazon, Apple, and Microsoft, recommending these stocks for investors. 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: If I Could Only Buy 1 Warren Buffett Artificial Intelligence (AI) Stock, This Would Be It (Hint: It’s Not Apple)