Here Are This Elite Fund’s Top 5 Stock Picks

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

Percentage of Lone Pine Capital’s Stock Portfolio: 6.69%

Amazon.com, Inc. (NASDAQ:AMZN) is an electronic device manufacturer, online retailer, and provider of web services.

On November 17, Amazon.com, Inc. (NASDAQ:AMZN) announced a partnership with Hyundai Motor Company (OTC:HYMTF) through which car dealers will be able to list their offerings on Amazon’s platform. BofA mentioned that this partnership will be beneficial for dealers and improve their lead generation.

Over the last three months, 40 Wall Street analysts covered Amazon.com, Inc. (NASDAQ:AMZN) stock, and all kept a Buy rating on the shares. The average price target is $175.51, showing an upside of 20.11% at the time of writing as of November 20.

Amazon.com, Inc. (NASDAQ:AMZN) was mentioned in Polen Capital’s 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.”