Since the launch of OpenAI's ChatGPT in late 2022, generative artificial intelligence (AI) has taken Wall Street by storm. And it seems like every other business is trying to incorporate AI into its business model, often with limited success. That said, there are some early winners. Let's discuss why Amazon (NASDAQ: AMZN) and Global-e Online (NASDAQ: GLBE) could make excellent buys in November and beyond.

Amazon

With a market cap of $2.46 trillion, you might think Amazon is done growing. But that couldn't be further from the truth. While the company's top-line growth has certainly slowed compared to its early days, an ongoing surge in profitability can ensure that it creates boatloads of shareholder value for years, if not decades. This trend will likely be driven by AI technology and warehouse robotics.

When Amazon CEO Andy Jassy took the helm from Jeff Bezos in 2021, it was widely expected that he would start prioritizing margins and profitability over relentless expansion. But few could have predicted just how successful he would be -- especially with the help of new automation technologies. Over the last few years, management has optimized Amazon's supply chain and unlocked efficiencies in both its office and warehouse workforce. The results have been stunning.

While second-quarter net sales grew by a modest 13% year over year to $167.7 billion, operating income jumped 31% to 19.2 billion, driven by an explosion in North American and international e-commerce, which soared by 48% and 448%, respectively.

Amazon is far from finished with its cost-cutting spree. In late October, the company announced a layoff of 14,000 office workers (4% of its global workforce) as it invests more in AI. This announcement follows an earlier report suggesting the company may be planning to use robotics to avoid hiring half a million jobs it would otherwise need by 2027.

While these moves will be good for Amazon's bottom line, the timing and delivery look poor. And the company may need to work on its messaging to avoid harming the morale of its workforce or causing brand damage.

Global-e Online

Like Amazon, Global-e Online is another e-commerce provider that is serious about improving its growth and profitability. While the company's stock price is down by an alarming 33% year to date, this discount may be a good opportunity to bet on its long-term potential rebound.

Based in Petah Tikva, Israel, Global-e Online has a unique business model. Instead of operating a third-party platform where vendors sell their products, it aims to tackle the pick-and-shovel side of the e-commerce industry by helping websites expand internationally by localizing their shopping experience. For example, this could include things like translating the website into different languages, converting currency, resolving customs issues, and facilitating overseas returns.

Image source: Getty Images.

So far, it looks like Global-e has established a pretty lucrative niche. Second-quarter revenue jumped 28% year over year to $214.9 million while the company swung from an operating loss of $22.8 million to a profit of $10.5 million. Management can grow its bottom line further by incorporating new technology. And in July, Global-e did exactly that by acquiring ReturnGO, an AI-powered return and exchange solution designed to help automate returns and customer service.

With a forward price-to-earnings (P/E) multiple of 37, Global-e remains somewhat pricey compared to the S&P 500 average of 24. But a premium is normal for growth-oriented stocks, especially in tech. Furthermore, the company is now much cheaper than it was in late 2024, when it had a forward P/E of 169. The discount makes for an attractive entry point.

Which stock is best for you?

While Amazon and Global-e Online are both great picks for investors who prioritize bottom-line growth and AI exposure, they serve different investing strategies. Amazon is clearly the safer bet because of its massive size, well-established revenue streams, and diversification into different technology verticals. Global-e is the riskier pick, but it likely has more long-term growth potential because of its smaller size.

Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Global-E Online. The Motley Fool has a disclosure policy.