4. Amazon.com, Inc. (NASDAQ:AMZN)
CSat Investment’s Stake Value: $3 million
Percentage of CSat Investment’s 13F Portfolio: 2.58%
Number of Hedge Fund Holders: 242
Market Capitalization as of 12/3/21: $1.7 trillion
Amazon.com, Inc. (NASDAQ:AMZN) is an online retailer based out of the United States. Its platform allows sellers and merchants to connect with their customers. The company has also expanded into other areas such as data centers, consumer electronics, and satellite internet.
CSat Investment owned a $3 million stake in Amazon.com, Inc. (NASDAQ:AMZN) that made up 2.58% of its portfolio by Q3 2021 end. This was through 994 shares. 242 of the 867 hedge funds polled by Insider Monkey during the same period held the company’s shares.
For its third fiscal quarter, Amazon.com, Inc. (NASDAQ:AMZN) brought in $110 billion in revenue and $6.12 in GAAP EPS, missing estimates for both. In a December 2021 note, UBS set a $4,700 price target and a Buy rating for the retailer, stating that, its retail and cloud divisions are among the strongest in the market.
As of December 3rd, 2021, Amazon.com, Inc. (NASDAQ:AMZN)’s market value was $1.7 trillion.
Ken Fisher’s Fisher Asset Management is Amazon.com, Inc. (NASDAQ:AMZN)’s largest investor according to Insider Monkey’s research. It owns 1.9 million shares worth $6 billion.
In a Q3 2021 investor letter, Madison Funds mentioned Amazon.com, Inc. (NASDAQ:AMZN) and stated that:
“We did add a modest new position weight to the portfolio in the quarter in Amazon.com, Inc. stock (AMZN). We acknowledge that many aspects of Amazon’s merit as an investment are well appreciated. However, our work leads us to conclude that shares are attractive. Leadership positions in both e-commerce and cloud computing provide the company with significant durable competitive advantages in industries that we think can produce above average growth over the next decade. Over the past year, AMZN shares have trailed the market as investors debate near-term growth prospects following the pandemic-induced e-commerce demand. Additionally, margins have been depressed due to Amazon’s unprecedented increases in spending to build out fulfillment and in-house logistics capabilities – Amazon will build out more square footage this year and last than it did cumulatively over the previous 10 years, more than doubling its in-house delivery capacity. We like the investments Amazon is making and believe they will further advantage the company relative to other retailers, making it nearly impossible for competitors to match the same level of delivery speed and convenience. With its large and frequently engaged customer base, Amazon has multiple mechanisms to make money, including selling advertising and enhanced subscription services. Within the cloud business, we forecast Amazon Web Services (AWS) leveraging its strengths in Infrastructure-as-a-service (IaaS) to move into higher value segments of cloud computing (such as platform-as-a-service: PaaS), allowing the company to continue outgrowing the overall IT sector with strong profitability. While Amazon shares have performed extremely well over the long-term, we think near-term concerns about whether Amazon will earn a return on its accelerated investments provide an opportunity now for investors willing to look through the investment period. Our view is that the investments likely earn strong returns and extend Amazon’s competitive advantages and above average growth.”
