1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) stock was trading at more than $2000 per share up until recently. This was until the company’s 20:1 stock split came into effect on June 6, pricing the shares at $120. This move allows retail investors an affordable opportunity to buy Amazon stock, and beginners can take advantage by putting their money into one of the most formidable companies on the stock market.
Based in Seattle, Washington, Amazon.com, Inc. (NASDAQ:AMZN) is a leader in e-commerce, and also offers cloud services through AWS (Amazon Web Services). It operates a video streaming service through its Amazon Prime platform, which enjoys more than 175 million paid subscribers from around the globe.
On June 6, MKM Partners analyst Rohit Kulkarni kept a ‘Buy’ rating on Amazon.com, Inc. (NASDAQ:AMZN) shares, and gave the stock a new, split-adjusted price target of $180, roughly in-line with his previous target of $3,625. He sees Amazon as the most diversified internet firm in the world, and appreciates it as the best “safe haven” internet stock within the macro set up.
Amazon.com, Inc. (NASDAQ:AMZN) stock was held by 271 hedge funds according to the Q1 database of Insider Monkey, making it the most widely-held stock in our database. With a massive $7.7 billion stake, Fisher Asset Management was the most prominent shareholder of Amazon.com, Inc. (NASDAQ:AMZN) in the first quarter.
In its Q1 2022 investor letter, investment firm Polen Capital discussed the performance and prospects of Amazon.com, Inc. (NASDAQ:AMZN), stating:
“Amazon has done a terrific job managing through the pandemic, in our view. Many companies struggled to pivot their business model during COVID-19, which represented an existential threat. Amazon had the opposite problem – a surge in demand. The company leaned into this by entering an extremely heavy investment cycle, doubling its fulfillment network and headcount over the past two years. To put this into context, Amazon added 273,000 employees in the last half of 2021 on top of over 400,000 employees the prior year. The company has also made significant Capital Expenditures, adding IT infrastructure for AWS and transportation capacity during this period. This all took place in the face of inflation related to wage increases and higher pricing from third-party carriers supporting the company’s fulfillment network. These heavy investments paid off—AWS grew 40% year over year, reached a $71B annual run rate, and total company revenue posted a two-year annual compounded growth rate of 25%. We believe this heavy investment cycle, like Amazon’s previous ones, will continue to support ongoing growth and will further separate Amazon from its competition while also providing the ability to increase margins through economies of scale. With respect to the margins specifically, AWS and Advertising – two fast-growing businesses – continue to contribute greater operating earnings to the overall business. We believe management has done an excellent job managing through this period and that the company is even stronger today than when COVID-19 first began to spread around the world.”
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