Is Amazon.com, Inc. (AMZN) the Least Risky Internet Stock To Invest In?

Insider Monkey
18 Apr

We recently published a list of Analysts Identify 10 Least Risky Internet Stocks To Invest In. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other least risky internet stocks to invest in.

Investors usually do not waste any time reminding everyone of the dot-com bubble whenever the market takes a turn for the worse. With a recession imminent, some sectors have already corrected by so much that they are in bear market territory. Internet stocks belong to the same group.

Analysts at Evercore believe most of the internet stocks have very limited exposure to tariffs but still get hammered every time the market crashes on tariff developments. This means these stocks now present a favorable risk-to-reward ratio for investors.

We therefore decided to dig into the details of each of these internet stocks. To come up with our list of the 10 least risky internet stocks, we used the list compiled by Evercore’s analysts and ranked them by risk, with the least risky stock taking the number one spot.

A customer entering an internet retail store, illustrating the convenience of online shopping.

Amazon.com, Inc. (NASDAQ:AMZN)

Amazon.com, Inc. operates in the retail sale of consumer products, subscriptions, and advertising services through physical stores and online. It operates in Amazon Web Services (AWS), North America, and International segments. The company also engages in the manufacturing and sale of electronic devices as well as in the production and development of media content.

The e-commerce giant recently introduced a new “Buy for Me” feature in its shopping app. This feature enables users to shop items from third-party websites without leaving the app. It is currently available to a limited group of users in the United States. Oliver Messenger, shopping director at Amazon, gave the details of this new feature:

“This new feature uses agentic AI to help customers seamlessly purchase from other brands within the familiar Amazon Shopping app, while also giving brands increased exposure and seamless conversion.”

The firm is expected to release its Q1 2025 earnings on April 28. Based on the guidance, the anticipated revenue growth for the quarter is about 7% YoY. Operating margin is projected to be around 10.4%. This represents a slowdown from the most recent quarter. However, analysts’ estimates are slightly higher than the guidance. They project revenue growth of 8.16% YoY along with the EPS growth of 38% YoY. Higher analyst estimates could result in volatility in the stock once the earnings come out later this month.

Overall, AMZN ranks 9th on our list of least risky internet stocks to invest in. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have 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 the 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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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