Jim Cramer and Billionaire Ken Fisher Love These 5 Stocks

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

Value of Fisher Asset Management’s 13F Position: $5.30 billion

Number of Hedge Fund Shareholders: 283

Ken Fisher has been a happy shareholder of Amazon.com, Inc. (NASDAQ:AMZN) dating back to the first quarter of 2011, enjoying greater than 1,300% returns on his position during that time. Hedge funds were selling out of Amazon in droves during the final quarter of last year, but that decline rebounded in the second quarter of this year, as dozens of funds added the stock to their portfolios.

Cramer noted near the end of last year that his Charitable Trust had begun building a small stake in  Amazon.com, Inc. (NASDAQ:AMZN) again after previously selling out of its former AMZN position at a much higher price. In April of this year, Cramer noted that if Amazon lays off even more of its workforce it could have a hugely beneficial effect on the company’s stock, declaring it the most dangerous short on the market today. In May, he added that Amazon is being underplayed in the AI space, noting that its machine learning capabilities are being used by various major companies in the areas of image recognition and intelligent speech, among other areas.

Baron Fifth Avenue Growth Fund is bullish on the near-term profitability of Amazon.com, Inc. (NASDAQ:AMZN)’s North American retail segment, as discussed in its second quarter 2023 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services provider. During the quarter, Amazon’s shares increased 26.2% as a result of improving investor perception regarding the company’s advancements in AI, as well as an anticipated slowdown in customer cloud optimization initiatives, which is expected to pave the way for the reacceleration of growth in Amazon Web Services in the latter part of 2023. We are also optimistic about Amazon’s ability to significantly enhance the profitability of its core North American retail segment in the short to medium term. This optimism stems from the company’s transition to a new regionalized fulfillment network, the rightsizing of its infrastructure from the increased spending levels during the early stages of the pandemic, and its rapidly growing advertising business, which is margin accretive. Looking further ahead, Amazon’s potential for growth in e-commerce remains substantial, considering it currently captures less than 15% of its total addressable market. Amazon also remains the clear leader in the vast and growing cloud infrastructure market, with large opportunities in application software, including enabling GenAI workloads.”