Obama Stock Portfolio: 10 Year Returns

4. Amazon.com Inc (NASDAQ:AMZN)

Number of Hedge Fund Holders: 302

Trailing 10-Year Returns: 28.41%

Amazon.com, Inc. (NASDAQ:AMZN), a leading American multinational technology conglomerate, operates across various sectors including e-commerce, cloud computing (Amazon Web Services – AWS), online advertising, digital streaming, and artificial intelligence. In the first quarter, the retail giant surpassed expectations with $143.3 billion in revenue and earnings per share of $0.98, beating the estimates of $142.5 billion in revenue and $0.83 EPS.

On June 14, JPMorgan reiterated its Overweight rating on Amazon.com, Inc. (NASDAQ: AMZN), maintaining a price target of $240. This decision followed a comprehensive analysis of the U.S. e-commerce landscape, considering category penetration and Amazon’s market share. The research indicates that Amazon is on track to surpass Walmart as the largest U.S. retailer by 2024, with long-term e-commerce penetration potentially exceeding 40%.

Furthermore, the tech giant has been strengthening its leadership in AI through its AWS business, which achieved operating margins of over 37% in the first quarter. AWS has consistently maintained operating margins above 30% for the past five quarters. Additionally, Amazon.com, Inc. (NASDAQ:AMZN)’s first-quarter revenue saw a 12.5% year-over-year increase, and its adjusted EPS more than tripled.

According to Insider Monkey’s research for the March quarter of 2024, out of the 919 hedge funds covered, 302 held stakes in Amazon.com, Inc. (NASDAQ:AMZN). Ken Fisher’s Fisher Asset Management was identified as the largest hedge fund investor in the company, with a stake valued at $7.67 billion.

Vulcan Value Partners stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its first quarter 2024 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is a dominant, world class company with powerful secular tailwinds in place including its ecommerce penetration, digital advertising growth, and the cloud transition. Amazon reported strong results during the quarter. Losses in the Core Retail business significantly narrowed. Amazon reduced its cost to serve on a per unit basis for the first time since 2018 as the company’s recent regionalization efforts continue to bear fruit.”