Top 5 Stocks Billionaire Larry Robbins Just Added to His Portfolio

1. Amazon.com, Inc. (NASDAQ:AMZN) 

Value of Glenview Capital’s 13F Position: $64.6 million

Number of Hedge Fund Shareholders: 282

Amazon.com, Inc. (NASDAQ:AMZN) hit a record high in hedge fund ownership during Q4, as 282 funds in our database were long AMZN. That included Larry Robbins’ Glenview Capital, which made Amazon its biggest new portfolio addition of Q4, buying 19,375 shares.

Amazon.com, Inc. (NASDAQ:AMZN) struggled to put up big numbers in Q4 against its tough 2020 comps, growing North American online sales by just 9% during the quarter, while its operating income profit from a year earlier became a loss in 2021. On the other hand, Amazon’s Web Services continued to excel, offsetting some of the stumbles from the e-commerce side of Amazon’s business. AWS grew sales by 37% year-over-year in 2021 to $62.2 billion, while achieving a hefty operating margin of 29.8%.

In it Q4 2021 investor letter, Davis New York Venture Fund expressed some consternation over unproven and unprofitable growth companies trading at exceptional valuations compared to dominant companies like Amazon.com, Inc. (NASDAQ:AMZN). Here is what the fund had to say:

“Within the traditional growth category, growing euphoria has led to bubble prices for many companies, most especially those with new and unproven business models such as those discussed above. In contrast, our research focuses on a select handful of proven growth stalwarts whose shares still trade at reasonable valuations. For example, because of concerns about future litigation and regulation, several dominant internet businesses, including Amazon, trade at steep discounts to many unproven and unprofitable growth darlings that, in our view, trade at euphoric prices. While we expect a continued barrage of negative headlines around the company, as well as increased regulation in the years ahead, we do not expect a significant decline in its long-term profitability.”

For more on the latest trades made by some of the biggest hedge fund managers in the world, check out 10 Finance Stocks to Buy During Interest Rate Hikes and 10 Blue Chip Stocks in Warren Buffett’s Portfolio.

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