3. Amazon.com, Inc. (NASDAQ:AMZN)
Duquesne Capital’s Stake Value: $102,406,000
Number of Hedge Fund Holders: 269
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best stocks to buy for flat markets according to Stanley Druckenmiller. The billionaire acquired a position in Amazon.com, Inc. (NASDAQ:AMZN) in the third quarter of 2022, purchasing 906,250 shares worth $102.40 million, representing 5.8% of the total 13F holdings.
On December 19, Evercore ISI analyst Mark Mahaney maintained an Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) but trimmed the price target on the shares to $150 from $170. He lowered his FY23 and FY24 revenue estimates by 4% and 5%, respectively, and his FY23 and FY24 operating income estimates by 9% and 8%, respectively, putting his forecasts “below the Street” to factor in the ongoing softness in online retail and cloud computing demand, the analyst told investors. However, the analyst continues to view Amazon.com, Inc. (NASDAQ:AMZN) as “highly attractive for long-term investors,” calling it a “Dislocated High Quality” stock.
According to Insider Monkey’s data, 269 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) at the end of September 2022, compared to 252 funds in the last quarter. Jaime Sterne’s Skye Global Management is a prominent stakeholder of the company, with 15.5 million shares worth $1.75 billion.
Here is what Farnam Street Investments has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:
“Change doesn’t just impact investors. Business people also bet for or against change. Jeff Bezos was once asked this exact question:
“You can build a business strategy around the things that are stable in time. It’s impossible to imagine a future ten years from now where a customer comes up and says, ‘Jeff, I love Amazon, I just wish the prices were a little higher.’ Or, ‘I love Amazon, I just wish you’d deliver a little slower.’ Impossible. So we know the energy we put into these things today will still be paying off dividends ten years from now. When you have something you know is true, you can afford to put a lot of energy into it.”
A lot of energy… and more than $172 billion in capital expenditure in the last fifteen years.
Deeper, slower moving layers turn exponential growth into “S-curves.” A rapidly dividing bacteria crashes into the resource-wall of its Petri dish. Nineteenth-century commercial robber barons were smacked by the governance layer of the Sherman Antitrust act. Amazon (NASDAQ:AMZN) Prime free shipping leaned on the creaking infrastructure of the U.S. Postal Service until it was forced to invest in its own infrastructure (all those delivery vans you see driving around).
Hopefully, next time you’re thinking about change, you can recall pace layers as a helpful construct to understand how successful systems change.
