Why RiverPark Is Bullish On Amazon.com (NASDAQ: AMZN)
Published on August 29, 2018 at 6:00 am by
M.Nadeem
in News
Share
The RiverPark Large Growth Fund is bullish on Amazon.com, Inc. (NASDAQ: AMZN). The fund, which recently released its Q2’18 Investor Letter, says that the online retailing giant continues to post impressive results in its core business segments and innovate in new markets such as video content, digital marketing, last mile delivery, the Echo/Alexa platform and, the $3-trillion healthcare market. The fund believes that Amazon has exceptional potential for sales and profit growth. Let’s take a look at the fund’s comments about Amazon.
AMZN shares advanced 17% for the quarter after reporting extremely strong first quarter results. For the quarter, sales increased an impressive 43% to $51 billion, an acceleration from the fourth quarter’s 38% year-over-year growth, while operating income increased 92% year-over-year (also an acceleration from the fourth quarter) and net income more than doubled to $1.9 billion. The company’s results were impressive across both its consumer franchise and its web services divisions. In its North America retail division, the company reported sales of $31 billion (for year-over-year growth of 46%) and 93% operating income growth. International retail also posted accelerating results with year-over-year revenue growth of 34% to $15 billion for the quarter. The company’s Amazon Web Services division was again a standout as it experienced another acceleration of growth to 49% year-over-year with operating margins of 25.7% (an increase of 140 basis points year-over-year). While Amazon continues to invest heavily to drive its market leading positions in each of its businesses and in all geographic regions, the company also continues to grow operating income faster than its strong sales growth. Additionally, management also provided better-than-expected second quarter guidance of 34%- 42% revenue growth and 75%-100% operating income growth.
In addition to posting impressive results in its core business segments, AMZN continues to innovate in new markets such as video content, digital marketing, last mile delivery, private label, the Echo/Alexa platform and, more recently, the $3 trillion healthcare market (via its partnership with J.P. Morgan and Berkshire Hathaway to lower the cost of covering employees and its $1 billion acquisition of online pharmacy PillPack). We believe that the sales and profit growth potential for the company remains exceptional and will lead to dramatic increases in excess free cash flow over the longer term.
Ttatty / Shutterstock.com
Shares of Amazon.com, Inc. (NASDAQ: AMZN) are up 62.12% since the beginning of this year. Over the past three months, the share price has jumped more 19%. Whereas, the stock has moved up more than 103 % over the past 12 months. AMZN has a consensus average target price of $2,127 and a consensus average recommendation of BUY, according to analysts polled by FactSet. On Monday, the stock was closed at $1,927.68.
Meanwhile, Amazon is a very popular stock among hedge funds tracked by Insider Monkey. As of the end of the second quarter of 2018, there were 137 funds in our database holding shares of the online retailer, including Taconic Capital, Antipodean Advisors, and Think Investments.
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.
It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.
Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
How could anything be worth that much?
The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.
And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.
What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.
In fact, Verge argues this company’s supercheap AI technology should concern rivals.
Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.
Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.
Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…
But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.
And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…
This prediction might not be bold at all:
A few years from now, you’ll wish you’d owned this stock.
The best part? You can discover everything about this company and its groundbreaking technology right now.
I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.
Trust me — you’ll want to read this report before putting another dollar into any tech stock.
For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!
Here’s why this is a deal you can’t afford to pass up:
• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
• Bonus Reports: Premium access to members-only fund manager video interviews
• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.
If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.
Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.
Here’s what to do next:
1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.
2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.
Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!
