Jim Cramer’s 5 Comeback Stocks

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

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is part of Cramer’s Charitable Trust portfolio and the tech giant is one of the stocks that Cramer is expecting to make a comeback. On December 20, Amazon Web Services was awarded a $723.88 million five-year, single-award, firm-fixed-price enterprise software license or blanket purchase agreement by the US Department of Navy. Work will be performed for a maximum of five years from December 2022 through December 2028.

On December 19, Evercore ISI analyst Mark Mahaney maintained an Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) but trimmed the firm’s price target on the shares to $150 from $170. The analyst slashed estimates for operating income and revenue for 2023 and 2024 but continues to view Amazon.com, Inc. (NASDAQ:AMZN) as “highly attractive for long-term investors,” and categorized it as a “Dislocated High Quality” stock. 

According to Insider Monkey’s Q3 data, 269 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 252 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is a significant position holder in the company, with approximately 50 million shares worth $5.6 billion. 

Here is what Farnam Street Investments has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“Change doesn’t just impact investors. Business people also bet for or against change. Jeff Bezos was once asked this exact question:

“You can build a business strategy around the things that are stable in time. It’s impossible to imagine a future ten years from now where a customer comes up and says, ‘Jeff, I love Amazon, I just wish the prices were a little higher.’ Or, ‘I love Amazon, I just wish you’d deliver a little slower.’ Impossible. So we know the energy we put into these things today will still be paying off dividends ten years from now. When you have something you know is true, you can afford to put a lot of energy into it.”

A lot of energy… and more than $172 billion in capital expenditure in the last fifteen years.

Deeper, slower moving layers turn exponential growth into “S-curves.” A rapidly dividing bacteria crashes into the resource-wall of its Petri dish. Nineteenth-century commercial robber barons were smacked by the governance layer of the Sherman Antitrust act. Amazon (NASDAQ:AMZN) Prime free shipping leaned on the creaking infrastructure of the U.S. Postal Service until it was forced to invest in its own infrastructure (all those delivery vans you see driving around).

Hopefully, next time you’re thinking about change, you can recall pace layers as a helpful construct to understand how successful systems change.”