Mario Gabelli’s 2022 Portfolio: 5 Tech Stock Picks

In this article, we discuss 5 tech stock picks of Mario Gabelli. If you want to read our discussion on Gabelli’s history and investment philosophy, go directly to Mario Gabelli’s 2022 Portfolio: 10 Tech Stock Picks.

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

Number of Hedge Fund Holders: 271

Mario Gabelli’s Stake Value: $23,882,000

Percentage of Gabelli’s Portfolio: 0.21%

Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle, Washington-based diversified technology company involved in various segments such as cloud computing, e-commerce, artificial intelligence, and digital streaming.

Amazon.com, Inc. (NASDAQ:AMZN) underwent a 20-for-1 stock split earlier this month. Following the split, on June 7, Tom Forte at DA Davidson reiterated a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) stock and shared a split-adjusted target price of $156.25. The analyst commented that the stock split would not change the fundamentals of the company, but it will experience a positive impact in the near term as investors see lower-priced stocks as less expensive compared to higher-priced stocks. The analyst highlighted that the biggest concern for Amazon.com, Inc. (NASDAQ:AMZN) is the slow growth in the e-commerce business as it is reaching maturity. However, this is countered by the fast-growing and high-margin cloud computing and digital advertising businesses.

Miller Value Partners shared its insights on Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2022 investor letter. Here’s what the firm said:

“For frame of reference, Amazon (NASDAQ:AMZN) bottomed at the same valuation in the financial crisis (side note: Amazon bottomed at 4x EV/GP after the tech bubble burst)! So there’s historical precedent for the lows being in. We will see whether that holds true this time. Regardless, we think there’s significant upside over a 5-year time horizon. The one other topic I want to briefly address is our volatility. We hope to write something about the topic in more depth in the future, but we want our clients and prospective investors to understand our views on it. We think that volatility is significantly misunderstood. We believe it creates opportunities from which we can profit.”

Of the 912 hedge funds in Insider Monkey’s database, 271 funds held a stake in Amazon.com, Inc. (NASDAQ:AMZN) as of Q1 2022.