5 Large-Cap Stocks Hedge Funds Are Dumping

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

Number of Hedge Fund Holders: 240

Number of Hedge Funds That Sold: 29

On February 2, Amazon.com, Inc. (NASDAQ:AMZN) reported earnings for the fourth quarter of fiscal 2022. The company generated a revenue of $149.20 billion and outperformed estimates by $3.43 billion. The company’s EPS for the quarter amounted to $0.03 and missed EPS expectations by $0.14. As of March 2, Amazon.com, Inc. (NASDAQ:AMZN) has lost 26.91% over the past 6 months.

Amazon.com, Inc. (NASDAQ:AMZN) was held by 240 hedge funds at the close of Q4 2022. The total stakes of these hedge funds amounted to $27.5 billion, down from $34.6 billion in the previous quarter with 269 positions. 29 hedge funds exited their positions in Amazon.com, Inc. (NASDAQ:AMZN) in the fourth quarter of 2022, making it the top large-cap stock that hedge funds are dumping right now.

As of December 31, Harris Associates is the leading investor in Amazon.com, Inc. (NASDAQ:AMZN) and has a position worth $1.62 billion in the company.

Here is what Ron Baron’s Baron Funds had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its fourth-quarter 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services provider. Shares of Amazon were down in the quarter, as the company guided to relative weakness in margins and its cloud business, due to the same macro headwinds and optimization trends impacting Microsoft Azure. We believe that Amazon is well positioned to improve profitability back to historical levels, particularly in its core North American retail division. We have already seen some of this play out with reports of Amazon’s increased cost discipline and broad-based layoffs. Particularly within the internet and software sectors, we believe Amazon can sustain premium growth compared to the rest of the market, given its competitive strengths and scale. Longer term, Amazon has substantially more room to grow in e-commerce, where it has less than 15% penetration in its TAM, and cloud, where it is a clear leader in the vast and growing cloud infrastructure market.”

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