Dorsal Capital Partners Sees a 13% Boost in 2023: Its Top 5 Stock Picks

2. Amazon.com Inc (NASDAQ:AMZN)

Dorsal Capital Management’s Equity Stake: $289.20 Million
Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) is a buzzing consumer cyclical investment play that strengthens Dorsal Capital Management’s portfolio in the internet retail sector. Amazon.com, Inc. (NASDAQ:AMZN) also offers compute storage databases and analytics through its cloud computing unit. It also manufactures and sells electronic devices, including Fire tablets, Kindle, and Echo speakers.

Amazon.com, Inc. (NASDAQ:AMZN) gained 79% in 2023, benefiting from solid consumer spending on its e-commerce platform. It also emerged as one of the top picks for gaining exposure to artificial intelligence frenzy.

286 out of the 910 hedge funds part of Insider Monkey’s database had bought Amazon.com Inc. (NASDAQ:AMZN) shares as of the end of Q3 2023. In Q4 2023, Ken Fisher’s Fisher Asset Management was a prominent investor courtesy of its $6.42 billion investment.

Polen Focus Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

“For the full year, the top relative and absolute contributors were Amazon.com, Inc. (NASDAQ:AMZN), Salesforce, and ServiceNow. Amazon shares appreciated 88% in 2023, driven primarily by rapidly expanding operating profit margins and free cash flow growth. After the pandemic, Amazon experienced a period of inefficiency and overinvestment in its distribution and logistics infrastructure. Amazon is now leveraging these investments as growth returned to its e-commerce business in 2023 after a highly unusual 2022. At the same time, Amazon’s rapidly growing and high-margin advertising business is contributing strongly to the entire company’s operating profit growth. The AWS (Amazon Web Services) cloud infrastructure and services business continued to slow in 2023 as customers anticipating a more difficult economic environment looked to save money on their cloud spend, but these cloud spending optimizations began to stabilize in the second half of 2023. We now expect customer interest in generative AI will begin to contribute to growth.”

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