Oakmark Funds, an investment management company, released its “Oakmark Global Select Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund generated a 12.9% return in the fourth quarter compared to a 9.8% return for the MSCI World Index. Also, it returned -22.5% for the calendar year 2022 compared to the -18.1% return for the MSCI World Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Oakmark Funds highlighted stocks like Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2022 investor letter. Headquartered in Seattle, Washington, Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products and subscriptions. On January 9, 2023, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $87.36 per share. One-month return of Amazon.com, Inc. (NASDAQ:AMZN) was -5.55%, and its shares lost 47.17% of their value over the last 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $891.221 billion.
Oakmark Funds made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2022 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN), a U.S.-based global leader in e-commerce and cloud computing, was a top detractor for the period. Amazon’s share price fell following its third-quarter earnings report and disappointing fourth-quarter outlook. Management indicated that fourth-quarter revenue will range between $140 billion148 billion, which is a 5% year-over-year increase (10% increase in constant currency) and 6% below consensus estimates. This deceleration compares to 15% growth in the third quarter. Management attributed weaker third-quarter sales to inflation and its impact on retail consumers’ budgets. We believe this is a macro issue, rather than company specific, since Amazon gained market share during the quarter. Retail profitability for the third quarter was also disappointing at -$2.9 billion, and earnings guidance was only slightly better for next quarter. In response, the company is cutting its retail capital expenditures and implementing various changes to improve margins. However, these changes will likely not generate benefits for some time because cost efficiencies are hard to implement during the holiday season and the company does not want to sacrifice customer services to rush profitability measures. Amazon Web Services (AWS) revenue was up 28% year-over-year and 3% below consensus estimates due to reduced or optimized usage. AWS’ margins were also below consensus and declined 400 basis points year-over-year as the company absorbed operating leverage for customers. While management indicated that AWS’ margins will “fluctuate over time,” the company continues to invest in the business, and its backlog grew 57% year-over-year. Although results and guidance during the quarter were mixed, we remain confident in our investment over the long term because we believe that Amazon’s business drivers are healthy and that its lower guidance is mostly the product of macro issues and timing.”
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Amazon.com, Inc. (NASDAQ:AMZN) is in 2nd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 269 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the third quarter, which was 252 in the previous quarter.
We discussed Amazon.com, Inc. (NASDAQ:AMZN) in another article and shared Lakehouse Capital’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
