2. Amazon.com, Inc. (NASDAQ: AMZN)
Number of Hedge Funds: 273
Amazon.com, Inc. (NASDAQ: AMZN) is a Washington-based multinational technology corporation primarily in the e-commerce business. The retail business of Amazon engages in reselling products of third parties on digital platforms as well as physical stores. The company has stakes in the electronic manufacturing business too, being famous for selling e-reader Kindle. It has a large publishing business as well. Amazon Web Services sells cloud-based services to customers. Amazon was founded in 1994 and is placed second on our list of 10 best tech stocks to invest in for long term gains.
On April 20, Amazon announced that it had launched a hair salon in London that will offer augmented reality hair consultations to citizens. The firm is also making inroads into digital advertising. Earlier this month, WSJ reported that Amazon had increased digital advertising revenue to more than 10% of the total, closing the gap on competitors who stood at more than 20%.
Out of the hedge funds being tracked by Insider Monkey, Hong Kong-based investment firm Tybourne Capital Management is a leading shareholder in the firm with 53,418 shares worth more than $165 million.
Our calculations show that Amazon.com, Inc. (NASDAQ: AMZN) tops our list of the 30 Most Popular Stocks Among Hedge Funds.
Alger Spectra Fund, in their Q1 2021 investor letter, mentioned Jeffrey Bezos‘ Amazon.com, Inc. (NASDAQ: AMZN). Here is what Alger Spectra Fund has to say about Amazon.com, Inc. in their Q1 2021 investor letter:
“Long position Amazon.com, Inc. was among the top detractors from performance. Amazon continued to generate strong high unit volume growth by taking market share from brick and mortar retailing. In the recent quarter, retail sales surprised notably on the upside as coronavirus has accelerated the adoption of e-commerce. Some of these shoppers will remain loyal beyond the end of social distancing further pushing the permanent market share gain of e-commerce at the expense of brick and mortar. Amazon.com’s guidance includes a modest deceleration in the retail sales growth but at still strong levels in the upcoming quarter. The same accelerated trend in adoption was also seen at Amazon’s AWS as corporate America embraced cloud offerings in the new distributed workforce environment although profitability in this segment fell short of expectations due to Amazon.com investing ingrowth initiatives.
Despite the continuing gains in these large addressable markets, Amazon’s share price detracted from performance as investors wait to see how the significant 2020 growth comparisons generated during the economic shutdown affect Amazon’s reported growth rates in 2021. Meanwhile, value versus growth equity returns in recent months indicate that investors possibly prefer to chase the transitory performance associated with pure play beneficiaries of economic re-openings while eschewing the potential compounding benefits garnered from high-quality, long-duration innovation led growers like Amazon.”
