Here's the 1 Stock Hedge Funds Are Buying Hand Over Fist

Core Insights - In January, Amazon was the most owned stock by hedge funds, according to the Hazeltree Crowdedness Report, indicating strong institutional interest [1][4] - Amazon's crowdedness score was 99, significantly higher than Microsoft (82), Nvidia (80), Meta Platforms (72), and Broadcom (68) [4] - Hedge funds are capitalizing on the tech sell-off from late 2025 into 2026, viewing Amazon's current valuation as an opportunity [5] Investment Sentiment - Amazon's stock is down nearly 20% from its October highs, trading at approximately 28 times forward earnings, with a year-to-date decline of about $11 [6] - Concerns exist regarding Amazon's planned $200 billion capital expenditures for the year, which is 50% more than the previous year, leading some to question the return on investment [6][7] - Despite these concerns, 92% of Wall Street analysts rate Amazon as a buy, with a median price target of $285 per share, suggesting a potential 39% return over the next 12 months [8] Competitive Landscape - Amazon Web Services is losing market share to competitors like Microsoft and Alphabet, prompting concerns about its AI infrastructure investments [7] - Microsoft and Nvidia are also favored by hedge funds, with Microsoft's forward P/E ratio dropping to 30, making it more attractive to investors [9]