2. Amazon.Com Inc (NASDAQ:AMZN)
Number of Hedge Funds: 286
Amazon.Com Inc (NASDAQ:AMZN) ranks 2nd in our list of the stocks ChatGPT believes can make one rich in the next ten years. Recently, Oppenheimer said Amazon.Com Inc (NASDAQ:AMZN) stock has more room to grow as it called AMZN its top large-cap pick for 2024. The firm upped its price target on Amazon.Com Inc (NASDAQ:AMZN) to $200 from $170. Oppenheimer expects Amazon Com Inc’s (NASDAQ:AMZN) margins to grow in both its ecommerce business and Cloud business.
Out of the 910 hedge funds tracked by Insider Monkey, 286 hedge funds reported having stakes in Amazon Com Inc (NASDAQ:AMZN) as of the end of the third quarter, up from 278 funds in the previous quarter.
Lakehouse Global Growth Fund made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its August 2023 investor letter:
“The Fund’s largest position, Amazon.com, Inc. (NASDAQ:AMZN), delivered an impressive quarterly result that came in well ahead of analysts expectations. Net sales increased 11% year-on-year to $134.4 billion and operating profits increased 133% year-on-year to $7.7 billion (vs the high end of guidance at $5.5 billion). Despite fears of a slowdown, growth within their core e-commerce business proved resilient and it was particularly encouraging to see progress on the cost front drive meaningful operating leverage. Management has been laser focused on driving efficiencies across the retail operation for the last 18 months and it’s now clear that these efforts are paying off with the company reporting its highest operating margin in two years. One notable initiative has been the regionalisation of their US fulfilment network from one national network to a series of eight separate regions serving smaller geographic areas, which has already delivered a 20% reduction in the number of touches per package and a 19% reduction in miles travelled.
When it comes to the company’s second largest segment, Amazon Web Services (AWS), revenue grew 12%, which is by no means earth shattering, but it was comforting as growth is now stabilising after six quarters of deceleration led by macro-driven customer optimizations. As we have mentioned before, we have always believed the recent AWS optimisation headwinds are more cyclical in nature, as opposed to anything fundamental, and a stabilisation in growth rates combined with a more upbeat outlook are strong evidence that this is likely the case. Bigger picture, we continue to believe that the market underestimates the length of the runway ahead in the core retail business (note that e-commerce sales in the US still only make up 15% of total retail sales) and that there is still significant margin expansion ahead as scale and efficiency benefits continue to come through.”
