2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 269
Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle, Washington-based e-commerce giant that has also diversified into cloud computing, consumer electronics, digital streaming, and healthcare. The company is at the second position on our list of the ten best Roth IRA stocks to buy according to hedge funds.
Amazon.com, Inc. (NASDAQ:AMZN) is working on streamlining its workforce as it will continue to slash its headcount into 2023, according to CEO Andy Jassy. The company has recently cut jobs across the books and devices business units. Furthermore, the rapid Amazon Web Services (AWS) segment has extended a hiring freeze until Q1 2023.
MoffettNathanson LLC, a New York-based research firm, highlighted Amazon.com, Inc. (NASDAQ:AMZN) as a winner in the e-commerce segment on November 15. The research firm has shown confidence in the growth outlook of e-commerce businesses despite macroeconomic uncertainty. The report pinpoints Amazon.com, Inc. (NASDAQ:AMZN) as a market share gainer and considers it a cheap business for investors at the current levels.
Here’s what Baron Funds said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest e-commerce retailer and cloud services provider. Shares of Amazon increased 6% in the quarter after the company reported strong results with 7% year-over-year revenue growth driven by 33% growth in Amazon Web Services (AWS), Amazon’s leading cloud computing service, while guiding for an acceleration in third quarter revenue growth, which is expected to be between 13% and 17% year-overyear. Amazon’s share of e-commerce is roughly 40%, far ahead of competition, yet domestic e-commerce accounted for only 14.5% of total retail sales (according to U.S. Census Bureau data for the second quarter of 2022), implying durable growth opportunities ahead. Internationally, the opportunity remains large as Amazon still has less than a 2% market share of international retail spending. Its advertising share is also only 3% and growing, underpinned by the structural closed-loop systems it enables (merchants know exactly whether their ad dollars resulted in a purchase since they are all done on the Amazon platform), which enables accurate targeting and measurement. Lastly, AWS has a good runway for growth as the industry still represents only 9.5% out of the $4.3 trillion of global IT spending according to Gartner. Areas such as logistics and health care present additional optionality.”
As of Q3 2022, Amazon.com, Inc. (NASDAQ:AMZN) was held by 269 hedge funds.
