Here’s Why Nzs Capital Sold Amazon.com (AMZN)

NZS Capital, LLLC, an investment management company, released its “NZS Growth Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The flagship strategy was up 16% (net) compared to 11% for the Morningstar Global Target Market Exposure (NR) index. An increasing consensus on rate cuts in 2024 created a positive backdrop for growth equities. The Magnificent Seven, who had outperformed the market for three quarters, fared similarly in the fourth quarter, benefiting active managers who avoided chasing momentum bets. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

NZS Capital featured stocks such as Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2023 investor letter. Headquartered in Seattle, Washington, Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products and subscriptions. On February 9, 2024, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $174.45 per share. One-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 12.82%, and its shares gained 75.26% of their value over the last 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $1.812 trillion.

NZS Capital stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

“IT remains an important area, however, and we made some adjustments. We sold Amazon.com, Inc. (NASDAQ:AMZN), which had been a large position, to focus on more favorable stocks with similar opportunities. Shopify can thrive in e-commerce while Microsoft’s cloud offering is encroaching on Amazon’s opportunity.”

A customer entering an internet retail store, illustrating the convenience of online shopping.

Amazon.com, Inc. (NASDAQ:AMZN) is in second position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 286 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of third quarter which was 278 in the previous quarter.

We discussed Amazon.com, Inc. (NASDAQ:AMZN) in another article and shared the list of best US stocks for foreign investors. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.