5 Stocks You Should Sell Before Recession

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

Number of Hedge Fund Holders: 279     

Amazon.com, Inc. (NASDAQ:AMZN) is a diversified tech firm with core interests in ecommerce. On April 29, the share price of the company slid by nearly 16%, the worst single day of decline for the company in nearly eight years. On April 28, the company had missed market estimates on earnings per share by a whopping $15.78 and posted a revenue of $116 billion, roughly in line with market expectations. The net sales for the second quarter were guided below consensus estimates as well. 

On April 29, Truist analyst Youssef Squali kept a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) stock and lowered the price target to $3,500 from $4,000, noting that ecommerce demand was normalizing and cost pressures were rising for the firm. 

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Citadel Investment Group is a leading shareholder in Amazon.com, Inc. (NASDAQ:AMZN) with 4.1 million shares worth more than $13 billion. 

In its Q4 2021 investor letter, Mercator International, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said: 

“Transformative technologies often generate euphoria. People are excited by the big new thing that is changing the world. We saw this pattern with the boom of westward canal transportation at the dawn of the nineteenth century. Railway stocks similarly attracted large numbers of eager investors a few decades later. Then came the electrification of America, the telephone, and the automobile industry, to name just a few transformative technologies.

The initial euphoric phase always ends with a reality check. Valuations come back to earth. At the end of the cycle, only a few companies remain standing. A shakeout has a way of clarifying the field of opportunities.

For example, readers may recall that when the internet bubble burst two decades ago, Amazon.com, Inc. (NASDAQ:AMZN) stock suffered greatly but pet.com was gone. For those investors who had stayed on the sidelines, this was an excellent time to buy Amazon.com, Inc. (NASDAQ:AMZN). The company’s business model had shown its merits and competition was rapidly shrinking. The stock price was now also much more attractive.”

You can also take a peek at 10 High-Yield Dividend Stocks with Payout Ratio Less than 55% and 10 Stocks to Buy Today According to British Billionaire David Harding.

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