3. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q3: 286
LMCG’s Equity Stake: $69.31 Million
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology company specializing in e-commerce, cloud computing, digital streaming, online advertising, and artificial intelligence. Founded by Jeff Bezos in 1994 in Bellevue, Washington, it initially operated as an online bookstore before evolving into a massive online marketplace known as “The Everything Store”. Today, Amazon is one of the Big Five American technology giants. The company has diversified its business through numerous subsidiaries, including Amazon Web Services (AWS) for cloud computing, Zoox for self-driving vehicles, Kuiper Systems for satellite internet, and Amazon Lab126 for hardware development. Additionally, it owns Ring, Twitch, IMDb, and Whole Foods Market, expanding its presence in various industries.
Amazon.com, Inc. (NASDAQ:AMZN) has proven its strength as a top-performing stock with impressive financial results in Q3 2024. The company reported $158.88 billion in revenue, reflecting a strong 11% year-over-year growth and slightly surpassing consensus estimates by 0.3%. Additionally, its EPS of $1.86 outperformed expectations by 25.3%, showcasing its ability to deliver consistent profitability. With robust financial performance and a strong market presence, Amazon.com, Inc. (NASDAQ:AMZN) is an excellent choice for investors looking for both stability and growth in the technology industry.
Amazon.com, Inc. (NASDAQ:AMZN) plans to invest over $100 billion in capital expenditures this year, focusing heavily on artificial intelligence infrastructure. CEO Andy Jassy stated during the company’s earnings call that the $26.3 billion spent on capital expenditures in the fourth quarter was “reasonably representative” of the rate he expects to spend in 2025, with most of these funds allocated to AI advancements within Amazon Web Services (AWS). This is in line with its competitors’ strategies to invest in AI, with Alphabet, Microsoft, and Meta planning to spend $75 billion, $80 billion, and between $60 billion and $65 billion in capital expenditures for AI expansion respectively during the 2025 fiscal year. The company recently introduced Trainium2, its latest in-house AI chip, and is collaborating with AI startup Anthropic to build a powerful server using hundreds of thousands of these chips. Additionally, Amazon anticipates unveiling Trainium3 later this year, further enhancing its AI capabilities.
LMCG owned 315,920 shares of the company as of Q4 2024, with a total value of $69.31 million. The fund decreased its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 4% during the fourth quarter of 2024. Overall, by the end of the September quarter, 286 hedge funds out of the 900 funds tracked by Insider Monkey held stakes in AMZN worth over $53.14 billion, down from 308 funds by the end of Q2.
Alger Spectra Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a renowned online retailer and leader in cloud computing. The company’s Amazon Web Services (AWS) division offers utility-scale cloud solutions that support corporate America’s digital transition. During the quarter, Amazon’s shares contributed to performance as the company reported better-than-expected fiscal third-quarter results, with revenues and earnings beating analyst estimates. Operating margins expanded to 11%, driven by efficiency gains in logistics and robust AWS performance. Notably, AWS revenue growth accelerated during the quarter, along with recording its highest-ever operating margin of 38.1%, driven by easing cloud cost optimizations, renewed workload migrations, and an increasing contribution from AI workloads. On their earnings call, management highlighted plans to increase capital expenditures to enhance their technology infrastructure, catering to the surging demand for AI-driven computing.”
