1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 271
American technology and e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN) gained the hedge fund industry’s attention in Q2, as the number of hedge funds tracked by Insider Monkey owning stakes in the company reached 271, up from 243 in the previous quarter. The total value of these stakes is over $60.4 billion. The digital sales at Amazon.com, Inc. (NASDAQ:AMZN) are expected to grow in the post-pandemic era as the consumers’ shift towards online shopping has been witnessed.
The company reported an 862% year-over-year growth in cough and cold medicine sales between February and March 2020. This October, Baird lifted its price target on Amazon.com, Inc. (NASDAQ:AMZN) to $4,000, while keeping an Outperform rating on the shares.
Madison Funds mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter. Here is what the firm has to say:
“We did add a modest new position weight to the portfolio in the quarter in Amazon.com, Inc. stock (AMZN). We acknowledge that many aspects of Amazon’s merit as an investment are well appreciated. However, our work leads us to conclude that shares are attractive. Leadership positions in both e-commerce and cloud computing provide the company with significant durable competitive advantages in industries that we think can produce above average growth over the next decade. Over the past year, AMZN shares have trailed the market as investors debate near-term growth prospects following the pandemic-induced e-commerce demand. Additionally, margins have been depressed due to Amazon’s unprecedented increases in spending to build out fulfillment and in-house logistics capabilities – Amazon will build out more square footage this year and last than it did cumulatively over the previous 10 years, more than doubling its in-house delivery capacity. We like the investments Amazon is making and believe they will further advantage the company relative to other retailers, making it nearly impossible for competitors to match the same level of delivery speed and convenience. With its large and frequently engaged customer base, Amazon has multiple mechanisms to make money, including selling advertising and enhanced subscription services. Within the cloud business, we forecast Amazon Web Services (AWS) leveraging its strengths in Infrastructure-as-a-service (IaaS) to move into higher value segments of cloud computing (such as platform-as-a-service: PaaS), allowing the company to continue outgrowing the overall IT sector with strong profitability. While Amazon shares have performed extremely well over the long-term, we think near-term concerns about whether Amazon will earn a return on its accelerated investments provide an opportunity now for investors willing to look through the investment period. Our view is that the investments likely earn strong returns and extend Amazon’s competitive advantages and aboveaverage growth.”
You can also take a look at 10 Best-Performing Countries for COVID-19 Vaccinations and 15 Companies That Benefitted The Most From The Pandemic
