Billionaire Ken Fisher’s 5 Stock Picks with Huge Upside Potential

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

Ken Fisher’s Stake Value: $5.257 billion

Average analyst price target: $175.75

Average analyst price target upside: 20.04%

Amazon.com, Inc. (NASDAQ:AMZN) is an American conglomerate with operations in retail, technology, and communications services. Fisher Asset Management owned 41.353 million of the company shares worth nearly $5.257 billion, making it the most prominent stakeholder of the company. Amazon.com, Inc. (NASDAQ:AMZN) covered 2.98% of Fisher’s 13F portfolio.

In Q3, 286 hedge funds had a stake in Amazon.com, Inc. (NASDAQ:AMZN), at a combined value of $38.9 billion.

Over the last three months, 42 analysts have covered Amazon.com, Inc. (NASDAQ:AMZN)’s stock, and all of them have a Buy rating on the company shares.

Polen Capital commented on Amazon.com, Inc. (NASDAQ:AMZN) in its third quarter 2023 investor letter. Here is what it said:

“Amazon continues to showcase it’s place as one of the most competitively advantaged companies in the world. The company has made significant progress in managing costs and better leveraging existing capacity, driving a strong recovery in its profitability. We think there’s additional room for improvement.

AWS growth seems to be stabilizing even while management continues to work with clients to optimize their infrastructure spend. Roughly 90% of global IT spending remains on premise. We believe this will eventually flip, with most IT spending ultimately moving to the cloud over time. We think AWS will be a significant beneficiary of this transition.

Further, our investment case on company profitability driven by AWS and advertising continues to unfold, delivering nearly $8 billion in free cash flow over the trailing twelve months and a net margin of 5%. We expect both to move higher with the mix shift of more profitable businesses growing fastest continuing to take effect.

At Amazon’s current price, we believe the company is well positioned to deliver a mid-teens or higher total shareholder return for our clients over the next five plus years without a Herculean effort from the business. It simply needs to continue executing on current businesses and growing into the capacity it built during and immediately after the pandemic.”