Is Amazon.com (AMZN) Mason Morfit's Top Pick?

Amazon.com, Inc. (NASDAQ:AMZN) is Mason Morfit’s largest holding, accounting for 12.96% ($768.60 million) of the billionaire’s total portfolio. We recently published a list of youngest hedge fund billionaires and their top stock picks.

Reuters revealed on February 9, 2026, that Amazon.com, Inc. (NASDAQ:AMZN) intends to introduce a content marketplace for publishers who sell content to AI companies. The initiative will be positioned alongside AWS products like Bedrock and Quick Suite. The action follows Microsoft’s announcement of a Publisher Content Marketplace and coincides with escalating discussions regarding usage-based fees for AI training data. Amazon emphasizes ongoing innovation and long-standing publisher partnerships, though it has not yet confirmed specifics.

Amid this, investors face challenges. Amazon’s stock dropped 5.5% on February 6, 2026, following Q4 earnings, as investors expressed concerns about the company’s slowing cloud growth, high capital expenditures, and competition. Gil Luria, an analyst at DA Davidson, reduced the price target for AMZN from $300 to $175 and downgraded it from ‘Buy’ to ‘Hold’. Luria drew attention to Amazon.com, Inc. (NASDAQ:AMZN)’s lack of a frontier AI lab, its limited strategic partnerships in AI, and AWS’s slower 24% growth compared to Google Cloud’s (48%) and Azure’s (39%). With its retail business at risk in a “chat-driven Internet” dominated by Gemini and ChatGPT, he pointed out that Amazon might have to spend $50 billion to stay competitive in advanced AI.

Amazon.com, Inc. (NASDAQ:AMZN) operates online retail and cloud services in North America and internationally, providing consumer products, advertising, subscriptions, and enterprise-grade computing, storage, and database services.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.