1. Amazon.com, Inc. (NASDAQ:AMZN)
No of HFs: 245
Total Value of HF Holdings: $43.7 Billion
Amazon.com, Inc. is an American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artifical intelligence. The company was mentioned as one of the 10 best magic formula stocks to buy now and was also ranked number one in the top 5 online shopping websites in the world in 2020.
In an article, Baron Opportunity Fund mentioned comments on the stock,
“Amazon.com, Inc. is the world’s largest retailer and cloud services provider. Shares were up on strong second quarter revenue metrics – with paid unit growth accelerating to 57%, a startling figure for a company of this scale – as Amazon benefited from recent investments in logistics and distribution to meet increased COVID-19-related demand. Amazon has the unique ability to deliver all the necessities of life safely to your doorstep, including groceries. Amazon also reported a stunning beat in operating profit, with $5.8 billion of operating income, almost six times Wall Street’s expected figure. While e-commerce penetration is rising rapidly and Amazon continues to grow its addressable market by entering new verticals, we continue to view Amazon Web Services as the more material driver of the company given its leadership in the vast and growing cloud infrastructure market and potential to compete in application software in the years to come.”
In a separate article, RiverPark Advisors, LCC shared their comments on the stock,
“Amazon: AMZN shares were a top contributor as the company again announced impressive quarterly results. Driven by the effects of the pandemic, AMZN’s year-over-year revenue growth accelerated to 40% in the second quarter, up from 26% growth for the first quarter. North American retail sales grew 43% to $55 billion, International retail sales grew 38% to $23 billion, Amazon Web Services revenue grew 29% in 2Q to $11 billion, and Amazon’s Other category, mostly driven by ad sales, grew 41% to $4 billion. With the continued acceleration in ecommerce and cloud computing adoption, management forecasted continued robust revenue growth for its third quarter, implying upwards of 33% year-over-year growth.
For the trailing twelve months, Amazon’s free cash flow grew 27% to $32 billion or $62 per share (up from $47 in the first quarter). We believe that Amazon’s revenue can grow from its TTM $322 billion to more than $800 billion annually, with free cash flow exceeding $150 per share by the end of 2025.”
Qualivian Investment Partners also had comments in the stock where it was mentioned in an article that COVID is pulling forward years of eCommerce migration and AMZN is one of the big winners
“Amazon: AMZN shares, along with many other eCommerce participants, have been on a strong run this year, outperforming the S&P 500 materially since February. COVID is pulling forward years of eCommerce migration and AMZN is one of the big winners. Alongside this, cloud migration continues to accelerate as the cost-benefit of migrating from on-premise to the cloud dominates especially in the work/learn from home COVID era. AMZN handily beat topline consensus estimates across its 1P/3P online sales, subscription, and other revenues, while meeting AWS sales estimates (which disappointed market observers). Operating income and cash flow handily beat consensus, increasing 96% and 52% last quarter, despite spending an incremental $2.5bn in Q2 and Q3 on COVID-related expenses.
The management team continues to invest in Prime One-Day shipping, AWS, international, video content, positioning the company for continued market share gains, new revenue growth vectors, and margin expansion once the company laps this investment cycle, further strengthening its long-term competitive advantage. The key risks that we continue to monitor are regulatory/political in nature.”
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Disclosure: None.
