2. Amazon.com, Inc. (NASDAQ:AMZN)
Stanley Druckenmiller’s Stake Value: $320,508,000
Percentage of Stanley Druckenmiller’s 13F Portfolio: 10.40%
Number of Hedge Fund Holders: 242
Jeff Bezos’ Amazon.com, Inc. (NASDAQ:AMZN) is engaged in ecommerce, online streaming, digital advertising, on-demand services, and artificial intelligence, and is one of the most notable tech stocks from Stanley Druckenmiller’s Q3 portfolio. Druckenmiller holds a $320.5 million stake in Amazon.com, Inc. (NASDAQ:AMZN), which accounts for 10.4% of his total investments from the third quarter.
Amazon.com, Inc. (NASDAQ:AMZN), on October 28, posted its Q3 earnings. EPS for the quarter came in at $6.12, missing estimates by -$2.78. The Q3 revenue equaled $110.81 billion, missing revenue estimates by -$784.89 million.
UBS analyst Kunal Madhukar assumed coverage of Amazon.com, Inc. (NASDAQ:AMZN) on December 2 with a Buy rating and a $4,700 price target, stating that the tech giant has multiple levers to drive margins.
Hedge funds pulled back on Amazon.com, Inc. (NASDAQ:AMZN) in Q3 2021, with 242 funds holding stakes in the company as compared to 271 funds being bullish on Amazon.com, Inc. (NASDAQ:AMZN) in the preceding quarter. Fisher Asset Management is one of the leading stakeholders of the company, holding a $6.34 billion position in the third quarter.
Here is what Madison Funds has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:
“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.”
