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2 Top Artificial Intelligence Stocks to Buy While They're on Sale
AMZNAmazon(AMZN) The Motley Fool·2025-04-27 08:07

Group 1: Economic Outlook and AI Investment - The economy faces uncertainty, but investing in top AI companies remains promising due to productivity gains expected over the next decade [1] - Leading companies are likely to continue attracting investment, driving returns for investors [1] Group 2: Amazon's Position and Performance - Amazon's shares have decreased by 31% from recent highs, with potential consumer demand impacts due to tariffs [3] - In the previous year, Amazon's revenue grew by 11% to 638billion,withnetincomenearlydoublingto638 billion, with net income nearly doubling to 59 billion [4] - AI is enhancing Amazon's operations by optimizing inventory and delivery routes, leading to cost reductions and profit growth [4] - The company is advancing same-day delivery and exploring drone deliveries, which could increase purchase frequency and cash flow [5] - Despite recession fears, Amazon's stock is considered attractively valued, with expected earnings growth of 20% annually [6] Group 3: Meta Platforms' Market Position - Meta Platforms has seen a 15% decline in share price this year, influenced by recession fears affecting advertising companies [7] - The digital advertising market, where Meta operates, is valued at 700billion,andthecompanyhasasignificantuserbaseofover3.3billiondailyusers[8]Metasrevenueandearningsgrewby21700 billion, and the company has a significant user base of over 3.3 billion daily users [8] - Meta's revenue and earnings grew by 21% and 60%, respectively, last year, aided by the launch of Meta AI [9] - The company utilizes AI for optimal ad placement, enhancing user engagement and advertiser ROI through its Andromeda machine learning system [10] - With a net income of 62 billion last year, Meta is positioned as a strong long-term investment, with expected earnings growth of 14% annually [11]