In this article, we will discuss value investor Joel Greenblatt’s top 5 stock picks. To see our detailed analysis of Greenblatt’s investment philosophy and his hedge fund’s performance over the years, and go directly to read Joel Greenblatt’s Return, Portfolio and Magic Formula.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Gotham Asset Management Q1 2023 Stake: $29.85 million
Amazon.com, Inc. (NASDAQ:AMZN) is a retail and tech company that sells consumer products and subscriptions online and in physical stores globally. One of the Big 5 tech giants, Amazon.com, Inc. (NASDAQ:AMZN) made a significant announcement on June 22, revealing its plan to invest $100 million in the AWS Generative AI Innovation Center. This initiative aims to empower users by providing them with resources and assistance to develop and utilize generative artificial intelligence solutions within their respective businesses. Gotham Asset Management reportedly holds 289,049 AMZN shares worth approximately $29.85 million as of the first quarter of 2023.
On April 27, Amazon.com, Inc. (NASDAQ:AMZN) reported a Q1 GAAP EPS of $0.31 and revenue of $127.4 billion, exceeding Wall Street estimates by $0.11 and $2.85 billion, respectively.
Insider Monkey’s first quarter of 2023 survey covering 943 hedge funds revealed that 243 had invested in the firm. Amazon.com, Inc. (NASDAQ:AMZN)’s biggest investor in our database is Ken Fisher’s Fisher Asset Management since it owns 41 million shares that are worth $4.2 billion.
Alphyn Capital Management made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2023 investor letter:
“In my 2002 Q4 letter, I outlined quantitative reasoning for why I believe the company’s financials mask its true earnings power. More qualitatively, Amazon.com, Inc. (NASDAQ:AMZN) continues to make strategic strides that enhance its appeal as an investment. Firstly, Amazon’s willingness to streamline costs and shutter underperforming initiatives demonstrates prudent financial management. The company’s overhaul of its fulfillment network, transitioning from a national to a regional model, will improve efficiency and delivery speed, resulting in lower costs and increased customer satisfaction, both critical drivers of revenue growth. Second, Amazon’s unparalleled scale, leading e-commerce platform position, and technology investments attract advertisers eager to engage with its vast customer base and provide consumers with highly targeted ads. This strategy has propelled Amazon’s advertising business to surpass broader market trends. Finally, Amazon remains a long-term growth entity. With retail, 80% of shopping is still offline, and Amazon has been steadily expanding its business sales (currently at $35 billion) and international presence. With AWS, despite near-term conservative enterprise spending, 90% of global IT spending remains on-premise. With other bets, Amazon has ambitious forays into diverse sectors such as grocery, healthcare, and satellite internet connectivity.”
