10 Best Stocks to Buy According to Eminence Capital’s Ricky Sandler

6. Amazon.com, Inc. (NASDAQ:AMZN) CALL

Number of Hedge Fund Holders: 302 

Eminence Capital’s Stake: $229,623,740    

Amazon.com, Inc. (NASDAQ:AMZN) is a diversified technology firm with core interests in ecommerce. The value proposition of the stock can be understood by looking at a few key financial metrics and strategic moves made public by the firm over the past few months. Over the last twelve months, the company has generated earnings per share of $3.57. This value is expected to grow by 23% in the coming year, from $4.72 to $5.80 per share​. This gives the stock plenty of room for growth and seems consistent with the Sandler strategy of buying good companies at value prices.

Amazon.com, Inc. (NASDAQ:AMZN) is investing heavily in expanding AWS infrastructure and capabilities, with plans to launch new regions and data centers, indicating long-term growth prospects and a commitment to maintaining a competitive edge​. The ongoing innovation in AI and cloud services, exemplified by new AWS capabilities and customer adoption, positions the firm favorably in rapidly growing tech sectors​

In a recent investor letter, Lakehouse Capital, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:

“Amazon.com, Inc. (NASDAQ:AMZN) delivered an impressive quarterly result that also came in well ahead of analyst expectations. Net sales increased 13% year-on-year to $143.3 billion and operating profits increased 219% year-on-year to $15.3 billion (vs the high end of guidance at $12.0 billion). As has been the case for several quarters now, the highlight of the result was the significant improvement in profitability metrics, as management continues to drive cost efficiencies across its retail operations and Amazon Web Services (AWS). Amazon delivered to Prime members at its fastest speeds ever. In March, across the top 60 largest U.S. metro areas, nearly 60% of Prime member orders arrived the same or next day, and in London, Tokyo, and Toronto, 3 out of 4 items were delivered the same or next day. Bigger picture, we continue to believe that the market underestimates the length of the runway ahead in the core retail business (note that e-commerce sales in the U.S. still only make up 15% of total retail sales) and that there is still significant margin expansion ahead as scale and efficiency benefits continue to come through.”