Is Amazon.com, Inc. (AMZN) the Top Stock to Buy According to Think Investments?
April 4, 2025
We recently published a list of Top 10 Stocks to Buy According to Think Investments. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other top stocks to buy according to Think Investments.
Think Investments is an investment firm based in San Francisco, with additional offices in Singapore and India. The firm focuses on long-term investments in both public and private companies, emphasizing creative research to identify high-potential opportunities. Specializing in technology-driven early-stage businesses, Think Investments partners with its strong management teams to build differentiated companies that generate high returns on invested capital. With a deep understanding of emerging markets and global technology, the firm is well-positioned to navigate complex investment landscapes.
Founded in 2013 by Shashin Shah, Think Investments has established itself as a key player in global markets. The firm has over $1 billion invested in Indian companies operating in the financial services, healthcare, technology, and consumer sectors. Think’s investment strategy is guided by Shah’s extensive experience in global equity markets, ensuring a disciplined approach to capital allocation. The firm’s commitment to long-term value creation has made it a trusted partner for relatively young companies looking to scale efficiently.
Shashin Shah, Founder and Managing Partner, brings decades of expertise in global investing. Before launching Think Investments, he was a partner at Valiant Capital, where he managed multiple international markets, including India, the U.S., Europe, Asia, the Middle East, and North Africa. Shah also worked at Blue Ridge Capital and Morgan Stanley, further honing his investing skills. His academic background includes a bachelor’s degree in computer engineering from the University of Mumbai and an MBA from the University of Texas, equipping him with a strong analytical and financial foundation.
In addition to leading Think Investments, Shah plays an active role in shaping the growth of innovative companies. He currently serves on the boards of Chaayos, a tea café chain, and Dream11, India’s leading fantasy sports platform. His leadership and strategic insights continue to drive Think’s success, solidifying its reputation as a premier investment firm in global markets.
As of its latest filing for the fourth quarter of 2024, Think Investments reported managing approximately $454.51 million in 13F securities, of which the firm’s top ten holdings account for 80.57%.
Our Methodology
The stocks discussed below were picked from Think Investments’ Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer entering an internet retail store, illustrating the convenience of online shopping.
Number of Hedge Fund Holders as of Q4: 339
Think Investments’ Equity Stake: $71.36 Million
As of Q4 2024, Think Investments held 325,275 shares of Amazon.com, Inc. (NASDAQ:AMZN), valued at over $71 million. Hedge fund interest in the company also increased, with 339 out of 1,009 funds tracked by Insider Monkey holding positions worth nearly $69.02 billion by the end of the quarter, up from 286 funds in Q3.
Amazon.com, Inc. (NASDAQ:AMZN)’s fourth-quarter 2024 earnings report reflected solid financial performance, with earnings per share (EPS) of $1.86 surpassing analyst expectations by 25.3% and revenue reaching $187.8 billion—a 10% year-over-year increase. However, the company’s Q1 2025 sales forecast of between $151 billion and $155.5 billion fell short of Wall Street’s expectation of $158.5 billion, dampening investor sentiment. Compounding this concern was a $2.1 billion foreign exchange headwind and Amazon’s announcement of an aggressive $100 billion capital expenditure plan for 2025, primarily earmarked for Amazon Web Services (AWS) and artificial intelligence. This figure is a notable increase from the $83 billion spent in 2024, raising concerns amid intensifying competition from rivals like Microsoft and Alphabet.
Despite these headwinds, Amazon.com, Inc. (NASDAQ:AMZN) continues to strengthen its position through strategic investments in AI. The company is integrating artificial intelligence across its core business segments, including e-commerce, advertising, and especially AWS, which stands out as its most profitable division. AWS is witnessing significant demand from customers for AI-driven workloads, positioning it to benefit considerably from ongoing advancements in AI technologies. The expanded capex for 2025 is largely directed toward bolstering AWS infrastructure to meet the rising demand for such services.
Analysts remain optimistic about Amazon’s long-term prospects, particularly its leadership in the cloud and AI sectors. Brian White of Monness reaffirmed a “Buy” rating on Amazon stock with a price target of $265, citing the company’s robust strategic positioning and growth potential.
Overall, AMZN ranks 1st on our list of top stocks to buy according to Think Investments. While we acknowledge the potential of AMZN, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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