5 Most Important Tech Layoffs to Watch

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

Number of Hedge Fund Holders: 252

Amazon.com, Inc. (NASDAQ:AMZN) announced recently that it intends to shut down two Baltimore delivery facilities and lay off 353 employees as a result. On July 28, Amazon.com, Inc. (NASDAQ:AMZN) reported its second quarter results, posting a loss per share of $0.20, missing market estimates by $0.32. The revenue of $121.23 billion outperformed Wall Street forecasts by $2.09 billion. 

On August 24, Bernstein analyst Mark Shmulik reaffirmed an Outperform rating and a price target of $160 on Amazon.com, Inc. (NASDAQ:AMZN) shares. The analyst believes things “are looking up” in a constrained macro environment as “we move past tougher compares” and the company remains well positioned to regain e-commerce share in the second half of 2022. 

Among the hedge funds tracked by Insider Monkey, Amazon.com, Inc. (NASDAQ:AMZN) was part of 252 public stock portfolios at the end of Q2 2022, down from 271 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is one of the leading position holders in the company, with 48.6 million shares worth over $5 billion. 

Here is what Vulcan Value Partners has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2022 investor letter:

“Amazon.com Inc. (NASDAQ:AMZN) has three components to its business model: online retail, cloud-based Amazon Web Services (AWS), and online advertising. We believe that the stock price has declined primarily due to its disappointing online retail results. Retail was extremely successful during COVID, and Amazon spent immensely to protect the consumer experience including buying extra inventory, buying inventory ahead of time, securing alternate shipping routes and adding extra warehouse space.

We believe this long-term behavior has been successful for Amazon as customer retention and engagement remain at high levels. Post-COVID, the company is in the process of rightsizing its cost structure, and it is facing a tough period of comparisons. The retail segment is the smallest contributor to our overall value. The majority of the company’s value is in AWS, which we believe is one of the best businesses in the world. AWS’ revenue is expected to be approximately $80 billion this year, which is nearly double the amount in 2020.

The company’s online advertising has turned into an attractive business that did not exist 15 years ago, and we estimate its revenue to be around $40 billion this year.”