4 Best Tech Stocks to Buy According to Hedge Funds

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

Percentage of Invesco QQQ Trust’s Portfolio: 7.79%

Number of Hedge Fund Holders: 252

Amazon.com Inc (NASDAQ: AMZN) is a multinational technology company operating online and physical stores where it sells its own products as well as allows third-party sellers to sell their products to consumers. It manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, and Ring, and develops and produces media content; and provides cloud computing services through Amazon Web Services platform. Its ecommerce platform is home to more than 1.7 million small and medium businesses.

In July, Amazon released its financial results for the second quarter of 2022. Its total revenue increased by 7% y-o-y to $121.2 billion, while it reported a net loss of $2 billion. The EPS was recorded at (-$0.20) for the quarter, missing the consensus by $0.32.

Amazon.com Inc (NASDAQ: AMZN) accounted for the third highest share in Invesco QQQ Trust’s portfolio as of Q2 2022 with 7.79% weight in the ETF’s portfolio. Amazon.com Inc (NASDAQ: AMZN) is also highly sought after by hedge funds as 252 out of the 895 tracked by Insider Monkey hold its shares with a total value of $30 billion.

Oakmark Funds, an investment management firm, mentioned Amazon.com, Inc. (NASDAQ: AMZN) in its second quarter of 2022 investor letter. Here’s what they said:

“Amazon (NASDAQ:AMZN) is the leading e-commerce and cloud-computing provider in the world. Two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (“AWS”) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at a very attractive price. At our purchase price and valuing AWS like its peers, an investor isn’t paying much of anything for the immensely valuable e-commerce franchise.”