David Tepper Portfolio Holdings: 5 Long-Term Stocks

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

Number of Hedge Fund Holders: 269

Appaloosa’s Holding Period: 4 Years

David Tepper’s Appaloosa Management has held a stake in Amazon.com, Inc. (NASDAQ:AMZN) for the last 4 years. In Q3 2022, the hedge fund owned 1.45 million shares of Amazon.com, Inc. (NASDAQ:AMZN) worth $163.85 million, representing 12.04% of the total 13F securities. 

On November 21, heading towards Thanksgiving and Cyber 5 weekend, JPMorgan analyst Doug Anmuth is worried about online holiday sales growth given the weakening consumer discretionary spending. He forecasts U.S. online holiday sales to increase 7.5% year-over-year, below last year’s 9.7% growth during Q4. Amazon.com, Inc. (NASDAQ:AMZN) maintains 40% share of U.S. e-commerce and seems well positioned after doubling its fulfillment network and workforce since the pandemic began, the analyst contended. Amazon.com, Inc. (NASDAQ:AMZN) stock remains the analyst’s best idea.

According to Insider Monkey’s data, 269 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q3 2022, compared to 252 funds in the preceding quarter. Jaime Sterne’s Skye Global Management is one of the largest stakeholders of the company, with 15.5 million shares worth $1.75 billion. 

Baron Funds made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest e-commerce retailer and cloud services provider. Shares of Amazon increased 6% in the quarter after the company reported strong results with 7% year-over-year revenue growth driven by 33% growth in Amazon Web Services (AWS), Amazon’s leading cloud computing service, while guiding for an acceleration in third quarter revenue growth, which is expected to be between 13% and 17% year-over-year. Amazon’s share of e-commerce is roughly 40%, far ahead of competition, yet domestic e-commerce accounted for only 14.5% of total retail sales (according to U.S. Census Bureau data for the second quarter of 2022), implying durable growth opportunities ahead. Internationally, the opportunity remains large as Amazon still has less than a 2% market share of international retail spending. Its advertising share is also only 3% and growing, underpinned by the structural closed-loop systems it enables (merchants know exactly whether their ad dollars resulted in a purchase since they are all done on the Amazon platform), which enables accurate targeting and measurement. Lastly, AWS has a good runway for growth as the industry still represents only 9.5% out of the $4.3 trillion of global IT spending according to Gartner. Areas such as logistics and health care present additional optionality.”

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