1. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 271
Jim Cramer likes Amazon.com Inc. (NASDAQ:AMZN) because of the company’s healthcare business, strong position in advertising, and Amazon Web Services, the company’s cloud business. Jim Cramer is recommending Amazon.com Inc. (NASDAQ:AMZN) for a mild recession and believes it is one of the few retailers that can navigate a mild recession.
On July 28, Amazon.com, Inc. (NASDAQ:AMZN) reported that its revenue for the fiscal second quarter of 2022 amounted to $121.23 billion, up 7.21% year over year, and ahead of market consensus by $2.09 billion. Amazon Web Services accounted for $19.74 billion of the company’s Q2 2022 revenue, up 33% year over year from $14.8 billion. Along with its earnings release, Amazon.com Inc. (NASDAQ:AMZN) announced that it expects its revenue for the fiscal third quarter of 2022 to grow by up to 17% year over year and amount to $130 billion.
Wall Street is bullish on Amazon.com Inc. (NASDAQ:AMZN). On July 29, Deutsche Bank analyst Lee Horowitz raised his price target on Amazon.com Inc. (NASDAQ:AMZN) to $175 from $155 and reiterated a Buy rating on the shares. Shortly after the company’s earnings release, Jefferies analyst Brent Thill raised his price target on Amazon.com Inc. (NASDAQ:AMZN) to $165 from $150 and maintained a Buy rating on the shares.
At the end of Q1 2022, 271 hedge funds were long Amazon.com Inc. (NASDAQ:AMZN). These funds held stakes worth $48.02 billion in the company. This is compared to 279 hedge funds in Q4 2021 with stakes worth $49.16 billion.
In the second quarter of 2022, Intermede Investment Partners raised its stakes in Amazon.com Inc. (NASDAQ:AMZN) by 2454%, bringing them to $167.29 million. As of June 30, Intermede Investment Partners owns roughly 1.5 million shares of Amazon.com Inc. (NASDAQ:AMZN) and is the largest shareholder in the company.
Here is what Oakmark Funds had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its “Oakmark Select Fund” second-quarter 2022 investor letter:
“Amazon (NASDAQ:AMZN) is the leading e-commerce and cloud-computing provider in the world. Two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (“AWS”) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at a very attractive price. At our purchase price and valuing AWS like its peers, an investor isn’t paying much of anything for the immensely valuable e-commerce franchise.”
You can also take a look at Jim Cramer Stock Portfolio: 10 Recent Additions and Jim Cramer Recommends These 10 Stocks For Recession.
