Entering the year, there were high hopes for the tech sector’s performance on the stock market. With AI demand skyrocketing, there is no shortage of companies that could pay off big. However, among them all, Amazon (AMZN) has been called the best low-risk stock in 2025 by experts, but why?
The e-commerce juggernaut is the face of diversification in the business world. It had undoubtedly dominated online sales but grew to service growing needs in the technology space. Now, its Amazon Web Services (AWS) business has evolved to be the face of cloud technology, enhancing its safety as an investment.
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Amazon Leads the Pack as Experts Call It Best Low-Risk Stock This Year: Are They Right?
There is a plethora of reasons for investors to be bullish on Amazon. For much of the last month, analysts have been championing the potential of the company as it heads into a critical 2025. Yet, amid continued rumors of a burgeoning trade war and DeepSeek’s AI sell-off ravaging the stock market this year, has it held its place?
Although a host of companies have similar potential, they do not boast the same safety. Indeed, that is why some experts have started calling Amazon (AMZN) the best low-risk stock of 2025. Specifically, one report notes that it is poised to continue its record growth rates.
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Currently, shares are held by 286 hedge funds, according to Insider Monkey. Moreover, these funds have leaned into the stock because of its “strong revenue growth rate.” Specifically, how that has continued. “Over the past decade, the firm has been one of the few in the technology sector with a consistent double-digit revenue growth rate,” the report notes.
AWS is expected to continue contributing to the companies, boosting operation income as well. It is a high-margin business compared to its retail sector. Moreover, its growth is not expected to stop any time soon.
The stock currently holds a buy rating from 95% of the 74 analysts surveyed by CNN. Moreover, only 1% have issued a sell rating. Over the next 12 months, it features a $285 price target. That would be a 19% increase from its current position and would see it significantly outperform the market.