Viking Global’s 5 Long-Term Stock Picks

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

Stock Held by Viking Global Since: Q2 2015

Percentage of Viking Global’s Portfolio as of Q1 2023: 3.69%

Amazon.com, Inc. (NASDAQ:AMZN) is one of the biggest tech companies in the world with a foothold in cloud computing, e-commerce, online streaming, AI, and digital marketing.

On July 13, Amazon.com, Inc. (NASDAQ:AMZN) revealed that Prime Day’s first day saw the most sales in the company’s past. The figures reported by the company show that Prime members made use of deals to have savings above $2.5 billion and bought 375 million items on the website across the world.

Amazon.com, Inc. (NASDAQ:AMZN) has been a part of Ole Andreas Halvorsen’s investment portfolio since the second quarter of 2015. In Q1 2023, the company represented 3.69% of Viking Global’s portfolio with over 7.6 million shares worth $787.92 million.

White Falcon Capital Management made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2023 investor letter:

“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.”