5 Stocks Most Bought By Hedge Funds

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

Number of Hedge Fund Holders: 293

Amazon.com, Inc. (NASDAQ:AMZN) is one of the most favored stocks among elite hedge funds. On February 26, Amazon’s cloud computing unit, Amazon Web Services (AWS), announced that it plans to invest $5 billion in cloud infrastructure projects in Mexico over the next 15 years. This investment is part of a long-term commitment to the Latin American markets. The new AWS Mexico Region aims to provide customers with increased access to advanced and secure cloud technologies. Prasad Kalyanaraman, Vice President of Infrastructure Services at AWS, stated that the investment reflects AWS’s dedication to enabling customers to leverage advanced technologies like artificial intelligence and machine learning.

According to Insider Monkey’s fourth quarter database, 293 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN), compared to 286 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is a prominent stakeholder of the company, with 13.6 million shares worth $2 billion. 

Polen Global Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN), which saw significant price appreciation throughout much of 2023, saw its share price increase materially in Q4 following the company’s Q3 2023 earnings report. We have yet to see the long-awaited re-acceleration in AWS (Amazon Web Services) revenue growth. However, in our estimation, the segment’s growth has likely bottomed, and we could see accelerating growth in 2024. Further, Amazon’s e-commerce business has gradually re-accelerated from 2022’s levels and, perhaps most importantly, the company’s margins and free cash flow have rebounded materially from last year. This rebound in margins and free cash flow at Amazon has been a key component of our long-term thesis for the business, and we expect the improvement in these metrics to continue into 2024 and beyond (though perhaps not linearly) as the company continues to optimize costs and capital expenditures. Our position in Amazon reflects our positive long-term expectations of the business, and it is currently our largest absolute weight in the Portfolio.”

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