5 Best Blue Chip Stocks to Buy According to Phill Gross and Robert Atchinson’s Adage Capital

03. Amazon.com, Inc. (NASDAQ:AMZN)

Adage Capital Management’s Stake Value: $ 967.218 million

Percentage of Adage Capital Management’s Portfolio: 2.21%

Number of hedge fund holders: 252

Amazon.com, Inc. (NASDAQ:AMZN) was in 252 hedge fund portfolios as tracked by Insider Monkey at the end of the second quarter compared to 271 the previous quarter. Adage Capital upped its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 1893% during Q2, holding 9.1 million of its shares having a worth of $967 million.

Baron Funds discussed Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter investor letter. Here is what Baron Funds specifically said about Amazon.com, Inc. (NASDAQ:AMZN)  in its Q2 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services provider. Shares of Amazon declined 35% in the quarter due to weaker-than-expected profits resulting from an overcapacity of resources coming out of COVID. We expect Amazon to grow into its retail capacity in the quarters to come, which would enable it to improve profitability accordingly. Amazon remains one of our largest holdings due to its durable competitive advantages with a leading position in multiple trillion-dollar markets with a long runway for growth.

According to the U.S. Census Bureau, domestic e-commerce was only 14.3% of retail as of the first quarter of 2022. Internationally, the opportunity is even earlier as Amazon has still less than 2% market share of international retail spending. Its advertising share is roughly 3% and growing, underpinned by its structural closed loop, which enables accurate targeting and measurement.

Lastly, Amazon Web Services or AWS, remains the leading cloud provider, while cloud computing still represents only 9.5% out of the $4.3 trillion of global IT spending according to Gartner. Areas such as logistics and health care present additional optionality.”