5 Best Delivery Stocks To Buy Heading Into 2023

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

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is one of the leading delivery stocks to watch. Amazon offers fast delivery to Prime members. Piper Sandler analyst Thomas Champion on November 22 maintained an Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN) but lowered the price target on the shares to $119 from $125. While AWS seems to be slowing, this looks to be more of an industry-wide phenomenon rather than Amazon specific, the analyst wrote in a research note. The analyst said AWS retains industry leading infrastructure-as-a-service market share of 50% among the “Big-4” providers. While the analyst trimmed estimates to reflect industry headwinds, he remains bullish on Amazon.com, Inc. (NASDAQ:AMZN) shares.

Among the hedge funds tracked by Insider Monkey, 269 funds were long Amazon.com, Inc. (NASDAQ:AMZN) at the end of September 2022, compared to 252 funds in the prior quarter. Jaime Sterne’s Skye Global Management held the largest stake in the company, with 15.5 million shares worth $1.75 billion. 

Baron Funds made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest e-commerce retailer and cloud services provider. Shares of Amazon increased 6% in the quarter after the company reported strong results with 7% year-over-year revenue growth driven by 33% growth in Amazon Web Services (AWS), Amazon’s leading cloud computing service, while guiding for an acceleration in third quarter revenue growth, which is expected to be between 13% and 17% year-over-year. Amazon’s share of e-commerce is roughly 40%, far ahead of competition, yet domestic e-commerce accounted for only 14.5% of total retail sales (according to U.S. Census Bureau data for the second quarter of 2022), implying durable growth opportunities ahead. Internationally, the opportunity remains large as Amazon still has less than a 2% market share of international retail spending. Its advertising share is also only 3% and growing, underpinned by the structural closed-loop systems it enables (merchants know exactly whether their ad dollars resulted in a purchase since they are all done on the Amazon platform), which enables accurate targeting and measurement. Lastly, AWS has a good runway for growth as the industry 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.”

You can also take a look at 16 Largest Media Companies in the World in 2022 and 15 Biggest Holding Companies in the World.