Jim Cramer Stock Portfolio: 5 Recent Additions

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

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is one of the Big Tech names backed by Jim Cramer, and Cramer’s Charitable Trust also owns a stake in the company. On November 29, Amazon.com, Inc. (NASDAQ:AMZN) announced several updates at its annual AWS cloud computing conference, including new data and security services, new AWS-designed chips, and more. Some of its latest offerings include AWS Clean Rooms, AWS Supply Chain, AWS SimSpace Weaver, Amazon Security Lake, and Amazon DataZone. 

On November 22, Piper Sandler analyst Thomas Champion maintained an Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN) but lowered the price target on the shares to $119 from $125. The analyst assessed the company’s Q3 results with a focus on Web Services. The analyst noted that AWS retains industry dominant infrastructure-as-a-service market share of 50% among the “Big-4” providers. The  analyst trimmed estimates to factor in industry headwinds but remains bullish on Amazon.com, Inc. (NASDAQ:AMZN) shares.

According to Insider Monkey’s data, 269 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q3 2022, compared to 252 funds in the prior quarter. Fisher Asset Management held a leading position in the company, consisting of nearly 50 million shares worth $5.6 billion. 

Baron Funds made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest e-commerce retailer and cloud services provider. Shares of Amazon increased 6% in the quarter after the company reported strong results with 7% year-over-year revenue growth driven by 33% growth in Amazon Web Services (AWS), Amazon’s leading cloud computing service, while guiding for an acceleration in third quarter revenue growth, which is expected to be between 13% and 17% year-over-year. Amazon’s share of e-commerce is roughly 40%, far ahead of competition, yet domestic e-commerce accounted for only 14.5% of total retail sales (according to U.S. Census Bureau data for the second quarter of 2022), implying durable growth opportunities ahead. Internationally, the opportunity remains large as Amazon still has less than a 2% market share of international retail spending. Its advertising share is also only 3% and growing, underpinned by the structural closed-loop systems it enables (merchants know exactly whether their ad dollars resulted in a purchase since they are all done on the Amazon platform), which enables accurate targeting and measurement. Lastly, AWS has a good runway for growth as the industry still represents only 9.5% out of the $4.3 trillion of global IT spending according to Gartner. Areas such as logistics and health care present additional optionality.”