Ken Fisher’s Top 5 Stock Picks

2. Amazon.com (NASDAQ: AMZN)

The largest e-commerce platform saw a stunning share price rally in the last twelve months and Fisher Asset Management is among the beneficiaries of the bull-run. AMZN is the second-largest stock holding of Ken Fisher’s 13F portfolio, accounting for 4.31% of the portfolio. Shares of AMZN grew around 59% over the last twelve months.

L1 Capital is bullish on Amazon and believes that Amazon is the best pick for 2021. Here is what L1 Capital stated in an investors letter:

“Several investments in the technology sector were trimmed on valuation grounds with the proceeds used to increase our investment in Amazon. Amazon’s successful flywheel business model and Amazon Web Services are well known. However, we believe the current share price under‑appreciates:

– The consistency and longevity of Amazon’s growth potential in its key businesses;

– The importance of additional revenue streams such as advertising which are high margin and growing rapidly; and

– The strengthening barriers to competition and competitive advantages arising from Amazon’s stepped‑up investment in logistics and other infrastructure.”

The Seattle, Washington-based company just had an amazing quarter. The company reported strong financial results for the fourth quarter, helped by record online sales driven by the pandemic. Amazon reported earnings of $7.2 billion, or $14.09 per share for the three months ended Dec. 30, representing a surge of more than two-folds from $3.3 billion, or $6.47 per share in the comparable period of 2019. Analysts on average were expecting the company to report a profit of $7.34 per share.

Revenue jumped 44 percent on a year-over-year basis to $125.6 billion, easily beating the consensus forecast of $119.7 billion. This was the first time that Amazon’s total sales crossed $100 billion in a quarter, thanks to the tremendous demand driven by the pandemic.