Goldman Sachs’ List Of Stocks That Hedge & Mutual Funds Love & Hate: 28 Stocks On The Mutual and Hedge Funds Radar

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

Number of Hedge Fund Holders In Q2 2024: 308

Category: Most popular with HFs and underweight among mutual funds

Amazon.com, Inc. (NASDAQ:AMZN) is the biggest eCommerce retailer in the world. It is also one of the biggest players in the cloud computing industry courtesy of its Amazon Web Services (AWS) business division. Consequently, the firm benefits from high volume top line revenue through its eCommerce business and high margin and recurring revenue via AWS. These provide Amazon.com, Inc. (NASDAQ:AMZN) with one of the widest moats in the business, and it makes it unsurprising that the stock is quite popular among hedge funds. Amazon.com, Inc. (NASDAQ:AMZN) also plays a key role in the AI industry via its partnership with Anthropic which provides it access to a foundational AI model. Its eCommerce platform which enjoys 3.25 billion users also creates a market for Amazon.com, Inc. (NASDAQ:AMZN) to sell its AI advertising and other services to businesses. The firm also benefits from providing an AI platform for application development to enterprises via AWS.

Patient Capital Management mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter. Here is what the fund said:

“Amazon.com Inc. (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.”