3. Amazon.com, Inc. (NASDAQ:AMZN)
Miller Value Partners’ Stake Value: $137,953,000
Percent of Miller Value Partners’ 13F Portfolio: 3.28%
Number of Hegde Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is an American multinational technology company that specializes in e-commerce, cloud computing, retail, and artificial intelligence. The company stands third on our list of the legendary value investor Bill Miller’s top 10 stock picks.
In Q2 2021, Miller Value Partners increased its stake in Amazon.com, Inc. (NASDAQ:AMZN). The hedge fund owns 40,101 shares in the company, valued at $137.9 million. The company represents 3.28% of the hedge fund’s 13F portfolio.
On October 5, JPMorgan listed Amazon.com, Inc. (NASDAQ:AMZN) as one of its attractive long-term stock picks. The firm’s analyst Doug Anmuth noted that the company is an attractive entry point for long-term investors, even though it suffered supply chain disruptions due to Covid-19.
As of Q2 2021, 271 hedge funds tracked by Insider Monkey have positions in Amazon.com, Inc. (NASDAQ:AMZN), up from 243 from the previous quarter. These stakes are valued at over $60.4 billion. Citadel Investment Group is the company’s leading shareholder with shares worth $13.12 billion.
ClearBridge Investments mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its second-quarter 2021 investor letter. Here is what the firm has to say:
“The Strategy’s goal of generating strong risk-adjusted performance while investing in companies that can make a positive impact on society and the environment is often supported by holdings that are companies with significant customer bases, making our engagements with them effective platforms for driving change. This is the case with new holding Amazon.com, the leading retail e-commerce site and provider of web hosting and related cloud services that continues to benefit from the migration of commerce from offline to online. We initiated a position in Amazon based on its strength in several areas, including retail, its Amazon Web Services cloud business and advertising; from a valuation perspective, Amazon has become more attractive as profitability has improved and the stock has gone sideways in an up market.
ClearBridge has been holding interactive engagements with Amazon on several ESG issues for several years, including labor and environmental issues, and we have seen improvements over that time. From a sustainability perspective, Amazon has made meaningful ESG commitments and improved labor practices and it faces fewer regulatory issues than many large tech peers. Labor management remains a key focal point and the company has made
increased commitments to its labor force, including in December 2018, when Amazon increased its minimum wage standard to $15 an hour in the U.S., well above the federal minimum wage standard. Amazon is also taking steps toward environmental sustainability that would put it ahead of peers if goals are achieved. In June 2019, Amazon set new targets to be carbon neutral by 2040 and to use 100% renewable energy by 2030.
Amazon has a long track record of innovation that benefits consumers and third-party sellers and has raised the bar multiple times on delivery and selection within its e-commerce business. In 2018, 58% of Amazon’s gross merchandise value (GMV) was generated by third-party sellers on the Amazon platform.
Given the colossal size of Amazon’s operations — it has over one million employees and ships nearly three billion packages each year — we see Amazon as a significant impact opportunity through continuous improvements in its operations, such as its net-zero carbon by 2040 goal.”
