Warren Buffett Trusts in These 5 Stocks Despite Losses

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

Berkshire Hathaway’s Stake Value: $1.13 billion

YTD Percentage Decline in Share Price as of August 21: 21.58%

Number of Hedge Fund Holders: 252

One of the most prominent stocks in Warren Buffett’s investment portfolio, Amazon.com, Inc. (NASDAQ:AMZN) stock has dropped more than 21% year-to-date. The billionaire investor raised his stake in Amazon.com, Inc. (NASDAQ:AMZN) by 1,900% in Q2, giving him ownership of 10.6 million shares worth $1.13 billion, accounting for 0.37% of his total 13F portfolio’s exposure.

Amid August 17 reports that Amazon.com, Inc. (NASDAQ:AMZN) will impose an incremental $0.35 per item fee on Fulfilled By Amazon items sold in the U.S. or Canada during the holiday season, Morgan Stanley analyst Brian Nowak noted that this incremental fee comes after the company raised its FBA fees by about 5% earlier in the year. According to the analyst, the incremental fee will lead to about $570 million and $90 million in Q4 and Q1 EBIT respectively, and calls the move a “positive signal.” Nowak maintained an ‘Overweight’ rating and $175 price target on Amazon.com, Inc. (NASDAQ:AMZN) shares.

According to Insider Monkey’s Q2 data, 252 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 271 funds in the previous quarter. Skye Global Management is a prominent position holder in the company, with 15.4 million shares worth $1.6 billion.

Here is what Alphyn Capital had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2022 investor letter:

“It is interesting to see how sentiment on Amazon went from positive to negative in one quarter, as it transpired that it too was not as immune to post-covid slowdowns as some, myself included, had expected. However, I feel confident that Amazon, as the apex predator in the e-commerce space, will navigate market softness better than most other retailers. Moreover, once it finishes with its current capex cycle, it will continue to improve margins. Andy Jassy is reportedly spending one-third of his time focused on capacity and supply issues in the retail division.”

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