1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 286
Amazon.com, Inc. (NASDAQ:AMZN), a prominent American multinational technology company, encompasses a diverse range of business interests, including e-commerce, cloud computing through Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence. The company’s e-commerce platform is well-diversified, offering a wide range of products, including gourmet food, groceries, apparel, baby products, consumer electronics, beauty products, and more.
In the quarter ending in September, Amazon.com, Inc. (NASDAQ:AMZN) reported a 236% growth in EPS to $0.94. For its closely-watched Amazon Web Services Cloud business, the company recorded a 12% year-over-year sales increase to $23.1 billion, slightly below analysts’ expectations for sales of $23.2 billion. Amazon.com, Inc. (NASDAQ:AMZN) also stated that it anticipates sales to fall within the range of $160 billion and $167 billion for the current fourth quarter.
Based on data from Insider Monkey’s database, a total of 286 elite hedge funds held positions in Amazon.com, Inc. (NASDAQ:AMZN) stock, with a collective stake value of $38.8 billion. This represents an increase from the 278 hedge funds that collectively held a stake valued at $34.9 billion previously. Notably, Ken Fisher’s Fisher Asset Management emerged as the most significant stakeholder in the company, with 41.35 million shares valued at $5.25 billion.
Tsai Capital Corporation stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) ($151.94 – up 80.9% for the year. Recent high $155.63): Amazon, founded by Jeff Bezos in his garage in 1994, is the most dominant e-commerce company and owns Amazon Web Services (AWS), the leading cloud provider. Andy Jassy, formerly head of AWS, became CEO of Amazon in 2021 and is executing exceptionally well. Because of their scale, AWS and Amazon retail benefit from numerous competitive advantages, which in turn drive a high customer value proposition. For example, instead of using the benefits of size to maximize short-term profits, Amazon operates with a scale-economies-shared business model, giving back some of its margin to the underlying consumer. This in turn drives further demand and strengthens the company’s ecosystem. Amazon’s long-term strategy masks the underlying earnings power of the business. As consumers continue to shift their spending from in-store purchases to online shopping, and as data continues to migrate from on-premise servers to the cloud, we expect Amazon to grow revenue at a low double-digit rate for at least the next five years and increase its profit margins over time.”
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