Billionaire Daniel Sundheim’s Top 15 Stock Picks Heading Into 2025

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

D1 Capital Partners’ Equity Stake: $225.69 Million

Number of Hedge Fund Holders as of Q3 2024: 286

Amazon.com, Inc. (NASDAQ:AMZN) is an internet retail giant that sells consumer products, advertising, and subscription services through online and physical stores. The company has generated billions of dollars in revenues from its e-commerce and cloud computing dominance.

The stock is up by about 51% year to date, benefiting from robust financial results and growing optimism about its growth prospects. Despite being a huge company with sales of $575 billion over the last 12 months, Amazon.com, Inc. (NASDAQ:AMZN) is still in a phase of robust growth. The company boasts of several growth engines. Amazon is the main beneficiary as shopping trends shift to online, given its robust logistics and supply networks supporting same-day and next-day deliveries. The company’s e-commerce platform accounts for almost 40% of all online sales in the United States.

In addition to e-commerce, Amazon.com, Inc. (NASDAQ:AMZN) is also a player in cloud computing, with Amazon Web Services affirming its growth prospects. Corporate interest in shifting IT capabilities to the adaptable and affordable off-premises computing environment should benefit AWS. Additionally, many of its clients view AWS as a mission-critical partner due to the necessity of integrating artificial intelligence tools.

Additionally, Amazon.com, Inc. (NASDAQ:AMZN) is already leveraging the technology to enhance its e-commerce operations by improving customers’ shopping experience. It’s also using the technology to enhance its cloud solutions, strengthening its competitive edge. AWS has already reached the $110 billion annualized revenue run rate and is still growing.

Patient Capital Opportunity Equity Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) moved higher throughout the second quarter as AI demand helped to reaccelerate growth in their AWS business. It looks as though the cloud business is finally past the customer cost optimization period with customers restarting their cloud migrations as well as expanding spend on AI projects. Despite the top and bottom-line improvement seen in the first quarter, the company is significantly underearning its long-term potential as it continues to reinvest aggressively in the business. With 80% of global retail sales still being done in physical stores and 85% of global IT spending still on-premises, we see a long-run way for the dominant player in the cloud, retail, and increasingly logistics and advertising space.”