2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Insider Monkey found 252 hedge funds that were bullish on Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q2 2022. These funds held stakes worth $30 billion in the company. As of June 30, Fisher Asset Management owns more than 46 million shares of Amazon.com, Inc. (NASDAQ:AMZN) and is the top shareholder in the company.
Amazon.com, Inc. (NASDAQ:AMZN) is a stable and low-debt tech company to own for the long term. According to the company’s balance sheet, as of June 30, Amazon.com, Inc. (NASDAQ:AMZN) has a debt-to-equity ratio of 0.44. The company’s exposure to various end-markets including e-commerce, data center, cloud computing, and artificial intelligence gives it a diverse range of revenue streams and positions it to remain a profitable tech company over the long term.
Wall Street is bullish on Amazon.com, Inc. (NASDAQ:AMZN) and the stock has a consensus Strong Buy rating. Over the past three months, Amazon.com, Inc. (NASDAQ:AMZN) has received 35 Buy ratings and 4 Hold ratings from Wall Street analysts. The stock has an average price target of $172, which represents a potential upside of 50% from current levels. This September, Citi analyst Ronald Josey reiterated his $185 price target and Buy rating on Amazon.com, Inc. (NASDAQ:AMZN).
Here is what Lakehouse Capital had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its second-quarter 2022 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) proved resilient in the face of ongoing macro pressures and delivered a strong quarterly result along with “better-than-feared” guidance for the third quarter. Net sales increased 7% year-on-year (10% constant currency) to $121.2 billion, while operating profit declined 57% to $3.3 billion. The drop in operating profit was attributable not only to external macro factors, such as elevated shipping and fuel costs, but also lower productivity and efficiency costs as a result of some overcapacity on the back of its recent investment cycle. It was pleasing to see that the company has begun to make progress on the more controllable costs, particularly productivity and staffing, with headcount, for example, down almost 100,000 over the quarter. We continue to believe Amazon is well positioned to manage these short-term issues and remains on track to deliver significant profit improvements over the next twelve months.
Management also confirmed that they have not seen any deterioration in Prime membership growth or retention following the 17% increase in Prime fees put through earlier in the year. This is not surprising to us, as in our view, the price increase was more than justified given the tremendous amount of customer value that has been added since the last price increase was implemented back in 2018, which includes the doubling of its fulfilment network and workforce, significant expansion of free same-day delivery and considerable investments in video and music content. Ultimately, we remain positive about Amazon’s future and believe that the company’s scale and market leadership will continue to drive growth for many years to come.”
