Analyst Says Amazon.com (AMZN) Is a ‘Victim of Their Own Success’

Fahad Saleem

Tue, Mar 11, 2025, 5:15 AM 6 min read

We precocious published a database of Top 10 Stocks Everyone Is Talking About These Days. In this article, we are going to instrumentality a look astatine wherever Amazon.com, Inc. (NASDAQ:AMZN) stands against different apical stocks everyone is talking astir these days.

Major AI stocks are wavering arsenic investors measure the interaction of decreasing hardware costs and their effects connected exertion spending. T. Rowe Price’s Tony Wang said successful a latest programme connected CNBC that portion Mag. 7 companies are inactive strong, determination are opportunities to look elsewhere arsenic the technology-related gains broaden out.

“You saw the Mag. 7 truly predominate the past 2 years, and I deliberation going into this year, I deliberation that there’s a batch of interest implicit the capex that’s being spent. I mean, they’re benignant of becoming fundamentally antithetic businesses successful immoderate respect successful presumption of the superior intensity. And past connected apical of that, you had benignant of much inline reports, and truthful erstwhile you’re spending a batch of capex and you’re coming successful line, I deliberation that tends to acceptable up for a tougher banal reaction. And so, you know, I deliberation there’s different areas successful tech that people things volition broaden retired to, similar things that person much bottoming fundamentals and tin person a small spot easier setup. So I deliberation that, you know, we’re looking for much broadening, and I deliberation that these are inactive precise bully companies and inactive similar a halfway portion of tech portfolios, but I deliberation there’s accidental elsewhere arsenic well.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article, we picked 10 stocks presently trending connected latest quality and expert ratings. With each banal we person mentioned the fig of hedge money investors. Why are we funny successful the stocks that hedge funds heap into? The crushed is simple: our probe has shown that we tin outperform the marketplace by imitating the apical banal picks of the champion hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks each 4th and has returned 373.4% since May 2014, beating its benchmark by 218 percent points (see much details here).

A lawsuit entering an net retail store, illustrating the convenience of online shopping.

Number of Hedge Funds Investors: 286

Joshua Ketter from Spreetail precocious said portion talking to Schwab Network that Amazon.com, Inc. (NASDAQ:AMZN) astute location devices are inactive not up to user expectations and it volition instrumentality clip for the institution to drawback up.

“Amazon, to a definite extent, they’re benignant of a unfortunate of their ain success. They’ve acceptable a precise precocious barroom and person precise precocious expectations with consumers, and I personally judge that they’re not going to rather get determination with this release. I deliberation implicit the people of clip they’ll get there. They truly bash person a close to triumph successful this space, though. To your point, I person implicit 50 devices successful my house—Amazon Alexa connects each of those, but it doesn’t bash a bully occupation astatine knowing which ones I really wanted to crook connected oregon disconnected unless I’ve named it conscionable right. And truthful that benignant of nuance successful connection is truly important, and you spot that ChatGPT has made tremendous strides successful that area. However, if I look astatine immoderate of Amazon’s ain existent AI models, they’re not rather there. They’re astir a twelvemonth behind, and truthful I bash deliberation they’ll get determination eventually, but if they’re utilizing their existent AI capabilities, I bash deliberation it’s going to beryllium limited. And again, I deliberation the situation is going to beryllium the user is going to person the expectations that this is different benignant of Tony Stark Jarvis-type happening oregon a Star Trek Central Computer, and that they’ll beryllium capable to bash anything, right? And the infinitesimal you commencement asking questions and it fails, I deliberation it tin beryllium challenging for Amazon to conscionable consumers’ expectations.”