Is Amazon.com (AMZN) Still an Investment Worthy Stock?

Oakmark Funds, an investment management firm, published its “Oakmark Fund” first quarter 2022 investor letter – a copy of which can be seen here.  A return of -3% was reported by the fund for the first quarter of 2022, outperforming its benchmark, the S&P 500 Index which had a -5% return for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Oakmark Fund mentioned Amazon.com, Inc. (NASDAQ:AMZN) and explained its insights for the company. Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN)  is a Seattle, Washington-based e-commerce company with a $1.5 trillion market capitalization. Amazon.com, Inc. (NASDAQ:AMZN)  delivered a -11.05% return since the beginning of the year, while its 12-month returns are down by -11.22%. The stock closed at $2,965.92 per share on April 21, 2022.

Here is what Oakmark Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2022 investor letter:

“Amazon is the leading e-commerce and cloud-computing provider in the world. In e-commerce, two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (AWS) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale, and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at an attractive multiple of normalized earnings and a discount to its peer-weighted enterprise value-to-sales multiple.”

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Our calculations show that Amazon.com, Inc. (NASDAQ:AMZN) tops our list of the 30 Most Popular Stocks Among Hedge Funds. Amazon.com, Inc. (NASDAQ:AMZN) was in 279 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 242 funds in the previous quarter. Amazon.com, Inc. (NASDAQ:AMZN) delivered a 3.96% return in the past 3 months.

Earlier this month, we also shared another hedge fund’s views on Amazon.com, Inc. (NASDAQ:AMZN) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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