3. Amazon.com, Inc. (NASDAQ:AMZN)
Motley Fool Asset Management’s Stake Value: $50,991,000
Percentage of Motley Fool Asset Management’s 13F Portfolio: 4.79%
Number of Hedge Fund Holders: 252
Analysts like Amazon.com, Inc. (NASDAQ:AMZN). On September 29, Citi analyst Ronald Josey reiterated his Buy rating and $185 price target on Amazon.com, Inc. (NASDAQ:AMZN) and also said that the stock continues to remain his top pick. On October 3, BofA analyst Justin Post revised his price target on Amazon.com, Inc. (NASDAQ:AMZN) to $157 from $170 and maintained a Buy rating on the shares. On October 4, JPMorgan analyst Doug Anmuth reiterated Amazon.com, Inc. (NASDAQ:AMZN) as his best idea.
At the end of Q2 2022, 252 hedge funds held stakes in Amazon.com, Inc. (NASDAQ:AMZN). The total value of these stakes amounted to $30 billion in the company. As of June 30, Motley Fool Asset Management’s stakes in Amazon.com, Inc. (NASDAQ:AMZN) sit at $50.99 million, and the stock is one of the best Motley Fool stocks to buy now.
Here is what Lakehouse Capital had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its second-quarter 2022 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) proved resilient in the face of ongoing macro pressures and delivered a strong quarterly result along with “better-than-feared” guidance for the third quarter. Net sales increased 7% year-on-year (10% constant currency) to $121.2 billion, while operating profit declined 57% to $3.3 billion. The drop in operating profit was attributable not only to external macro factors, such as elevated shipping and fuel costs, but also lower productivity and efficiency costs as a result of some overcapacity on the back of its recent investment cycle. It was pleasing to see that the company has begun to make progress on the more controllable costs, particularly productivity and staffing, with headcount, for example, down almost 100,000 over the quarter. We continue to believe Amazon is well positioned to manage these short-term issues and remains on track to deliver significant profit improvements over the next twelve months.
Management also confirmed that they have not seen any deterioration in Prime membership growth or retention following the 17% increase in Prime fees put through earlier in the year. This is not surprising to us, as in our view, the price increase was more than justified given the tremendous amount of customer value that has been added since the last price increase was implemented back in 2018, which includes the doubling of its fulfilment network and workforce, significant expansion of free same-day delivery and considerable investments in video and music content. Ultimately, we remain positive about Amazon’s future and believe that the company’s scale and market leadership will continue to drive growth for many years to come.”
