Strong Dollar is Crushing These 5 Stocks

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

Number of Hedge Fund Holders: 271

Amazon.com, Inc. (NASDAQ:AMZN) on July 28 posted its June quarter results. While the company recorded a loss per share of $0.20, its quarterly revenue climbed 7.21% year over year to $121.23 billion, outperforming Street consensus by $2.09 billion. In its Q3 2022 guidance, Amazon.com, Inc. (NASDAQ:AMZN) expects net sales to lie between $125.0 billion and $130.0 billion, compared to a $126.58 billion consensus. This guidance factors in a negative impact of approximately 390 basis points from foreign exchange rates.

On July 29, UBS analyst Lloyd Walmsley raised the price target on Amazon.com, Inc. (NASDAQ:AMZN) to $180 from $167 and reiterated a Buy rating on the shares. The company announced solid Q2 results with “robust” backlog growth, and its Q3 revenue growth outlook of 13%-17% also exceeded expectations, the analyst told investors. He adds that Amazon.com, Inc. (NASDAQ:AMZN)’s fulfillment expense and COGS were both below his forecasts, though these were partly offset by increased marketing costs.

According to Insider Monkey’s data, 271 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q1 2022, compared to 279 funds in the previous quarter. Fisher Asset Management held a significant stake in the company, comprising 2.3 million shares worth $7.70 billion. 

Here is what Oakmark Select Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2022 investor letter:

“Amazon (NASDAQ:AMZN) is the leading e-commerce and cloud-computing provider in the world. Two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (“AWS”) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at a very attractive price. At our purchase price and valuing AWS like its peers, an investor isn’t paying much of anything for the immensely valuable e-commerce franchise.”

You can also take a look at This Analyst Is Bearish on These 15 Retail Stocks Amid “Soft Landing” Expectations and 10 Crypto Companies Hit By the Recent Crash.

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