5 Best Stocks To Buy Right Now

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

Number of Hedge Fund Holders: 252

Amazon.com, Inc. (NASDAQ:AMZN) is a clear leader in e-commerce and has a proven track record of continuous innovation and growth. The company is one of the most trusted brands in the world and has built a loyal customer base. The company has a diversified business model with multiple revenue streams, including e-commerce, cloud computing, and digital content.

On October 24, MKM Partners analyst Rohit Kulkarni revised his price target on Amazon.com, Inc. (NASDAQ:AMZN) to $165 from $170 and maintained a Buy rating on the shares. This October, JPMorgan analyst Doug Anmuth adjusted his price target on Amazon.com, Inc. (NASDAQ:AMZN) to $175 from $185 and reiterated an Overweight rating on the shares.

At the end of Q2 2022, 252 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) and held stakes worth $30 billion in the company. Of those, Fisher Asset Management was the largest shareholder and had stakes of over $5 billion in the company.

Here is what Lakehouse Capital had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its second-quarter 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) proved resilient in the face of ongoing macro pressures and delivered a strong quarterly result along with “better-than-feared” guidance for the third quarter. Net sales increased 7% year-on-year (10% constant currency) to $121.2 billion, while operating profit declined 57% to $3.3 billion. The drop in operating profit was attributable not only to external macro factors, such as elevated shipping and fuel costs, but also lower productivity and efficiency costs as a result of some overcapacity on the back of its recent investment cycle. It was pleasing to see that the company has begun to make progress on the more controllable costs, particularly productivity and staffing, with headcount, for example, down almost 100,000 over the quarter. We continue to believe Amazon is well positioned to manage these short-term issues and remains on track to deliver significant profit improvements over the next twelve months.

Management also confirmed that they have not seen any deterioration in Prime membership growth or retention following the 17% increase in Prime fees put through earlier in the year. This is not surprising to us, as in our view, the price increase was more than justified given the tremendous amount of customer value that has been added since the last price increase was implemented back in 2018, which includes the doubling of its fulfilment network and workforce, significant expansion of free same-day delivery and considerable investments in video and music content. Ultimately, we remain positive about Amazon’s future and believe that the company’s scale and market leadership will continue to drive growth for many years to come.”