Top 5 Stocks in Lee Ainslie’s Portfolio

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

Number of Hedge Fund Holders: 243
Maverick Capital % Portfolio:  3.85%

Amazon.com, Inc. (NASDAQ:AMZN) accounts for 3.85% of Maverick Capital’s portfolio. Investments into the company offer exposure to a robust e-commerce business and cloud computing that account for the largest share of total revenues. The tech giant has been posting impressive numbers, with sales increasing 9% in Q1 as Amazon Web Services delivered a 16% sales increase. The tech giant is also betting on artificial intelligence as it looks to enhance its e-commerce business and lead with AWS.

Amazon has outperformed the overall market going by the 60% plus rally year to date. The consensus rating for Amazon.com, Inc. (NASDAQ:AMZN) is a Strong Buy, which reflects 38 buy ratings, 1 hold rating and 0 sell rating.

According to Insider Monkey’s database, 243 hedge funds owned stakes in the company at the end of the first quarter, up from 240 in the preceding quarter. Natixis Global Asset Management’s Harris Associates held the biggest stake in Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q1 2023 with 22.87 million shares.

In its investor letter for the second quarter of 2023, White Falcon Capital Management offered its insights regarding Amazon.com, Inc. (NASDAQ:AMZN):

“Amazon.com, Inc. (NASDAQ:AMZN): Amazon is a controversial investment. It had been ‘profitless’ for much of its existence and divided investors on the ultimate sustainability of the business model. We believe that Amazon has two very strong businesses – an e-commerce business (including ads) backed by a top-notch logistics network and an internet infrastructure business called AWS that is an oligopoly with Microsoft and Google. We believe Amazon has a superior culture that allows it to succeed in its various business lines. Importantly, Amazon is inflecting on free cash flow (FCF). We model that it will produce $6+ in FCF per share in three years. If this is valued at 3-3.5% FCF yield then Amazon is a $200 stock. Amazon also has a portfolio of venture bets (which consume a lot of capital) and all these are upside options for an investor.”