5 Best Stocks to Buy According to Motley Fool

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

Motley Fool’s Stake Value: $81,611,000

Percentage of Motley Fool’s 13F Portfolio: 5.21%

Number of Hedge Fund Holders: 279

Amazon.com, Inc. (NASDAQ:AMZN) is a leading force in the e-commerce, cloud computing, artificial intelligence, and digital streaming spaces. It is one of the Big Five US tech companies. As of Q4 2021, Motley Fool held 24,476 shares of Amazon.com, Inc. (NASDAQ:AMZN), worth $81.6 million, representing 5.21% of the total 13F holdings. The hedge fund elevated its stake in the company by 2% in Q4. 

On April 22, Credit Suisse analyst Stephen Ju maintained an Outperform rating and a $4,100 price target on Amazon.com, Inc. (NASDAQ:AMZN) ahead of the company’s Q1 earnings. The analyst said Amazon.com, Inc. (NASDAQ:AMZN) remains a top pick as it is “the only company that has the potential to deliver accelerating revenue AND free cash flow growth”. His bullish thesis is based on operating margin expansion in the e-commerce segment, optionality for quicker than expected free cash flow growth through its advertising segment, and the higher AWS revenue forecasts.

Among the hedge funds tracked by Insider Monkey, 279 funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) at the end of December 2021, up from 242 funds in the preceding quarter. Boykin Curry’s Eagle Capital Management is a significant shareholder of the company, with 677,828 shares worth $2.26 billion. 

Here is what Oakmark Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2022 investor letter:

“Amazon is the leading e-commerce and cloud-computing provider in the world. In e-commerce, two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (AWS) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale, and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at an attractive multiple of normalized earnings and a discount to its peer-weighted enterprise value-to-sales multiple.”

You can also take a look at 10 Best Stocks to Buy Now According to Billionaire David Harding and 10 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital.

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