2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 339
Lone Pine Capital’s Equity Stake: $831.28 Million
As of Q4 2024, Lone Pine Capital held 3.79 million shares of Amazon.com, Inc. (NASDAQ:AMZN), valued at over $831 million. Hedge fund interest in the company also increased, with 339 funds tracked by Insider Monkey holding positions worth nearly $69.04 billion by the end of the quarter, up from 286 funds in Q3.
As of February 24, 2025, Amazon.com, Inc. (NASDAQ:AMZN) traded at approximately $216.58 per share, reflecting market fluctuations. Despite a strong market capitalization of $2.23 trillion, the stock dipped nearly 3% to a low of $214.74, its lowest since early December. The decline followed Amazon’s Q4 2024 earnings report, which, despite exceeding expectations with earnings per share (EPS) of $1.86 and revenue of $187.8 billion (a 10% year-over-year increase), disappointed investors with a Q1 2025 sales forecast of $151 billion to $155.5 billion, below Wall Street’s $158.5 billion estimate. Additionally, concerns arose over Amazon.com, Inc. (NASDAQ:AMZN)’s aggressive $100 billion investment in AWS and AI, an increase from $83 billion in 2024, as well as a $2.1 billion foreign exchange headwind. Heightened competition from Microsoft and Alphabet further contributed to bearish sentiment, despite Amazon’s continued financial strength.
Amazon.com, Inc. (NASDAQ:AMZN)’s long-term growth remains remarkable, with its stock having surged over 226,744% since its 1997 IPO. In Q4 2024, the company’s operating income climbed to $21.2 billion from $13.2 billion the previous year, while net income doubled to $20 billion. AWS played a key role, reporting a 19% rise in quarterly revenue to $28.8 billion. For the full year, the company’s net sales increased 11% to $638 billion, with operating income nearly doubling to $68.6 billion and net income reaching $59.2 billion. Despite a 44% stock surge in 2024—outpacing the market’s 23% gain—early 2025 has seen increased volatility due to conservative forward guidance. However, Amazon’s financial resilience, dominance in e-commerce and cloud computing, and strategic investments in AI position it well for sustained long-term growth.
Mar Vista Investment Partners, LLC stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Amazon.com, Inc.’s (NASDAQ:AMZN) profitability was the key highlight of the third quarter financial results, with AWS and International Retail achieving record operating margins, and North America Retail posting its second-best margin in five years. Even more impressive was the fourth quarter operating income forecast, projecting up to $20 billion, significantly exceeding the expected $16 billion and suggesting a record 11% margin. This exceptional performance was driven by economies of scale, logistics efficiencies, successful AI implementations, increasing ad revenue, and accelerated AWS growth.
We keep our investment in Amazon due to several factors: AWS growth has further potential, Amazon Prime Video monetization is in its initial stages, and the company is expanding into promising sectors like Pharmacy and Logistics. Furthermore, with strengthening profitability and cash reserves exceeding $100 billion, the possibility of substantial capital returns increases. By continuing to innovate and invest in technologies like AI and cloud computing, Amazon is well-positioned to keep its competitive edge.”