3. Amazon.com, Inc. (NASDAQ:AMZN)
Fisher Asset Management’s Stake Value: $5.16 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 3.65%
Number of Hedge Fund Holders: 252
Fisher Asset Management acquired a position in Amazon.com, Inc. (NASDAQ:AMZN), the largest e-commerce company in the world and one of the Big Five tech companies, in the first quarter of 2011. The hedge fund raised its Amazon.com, Inc. (NASDAQ:AMZN) stake by a staggering 1,959% in Q2, holding 48.6 million shares worth $5.16 billion, representing 3.65% of the fund’s total 13F securities.
Bernstein analyst Mark Shmulik maintained an ‘Outperform’ rating and a price target of $160 on Amazon.com, Inc. (NASDAQ:AMZN) shares on August 24. The analyst believes things “are looking up” in a challenging macro environment as “we move past tougher compares” and that the e-commerce giant remains well positioned to retake its share in the second half of 2022. Shmulik states that he is “encouraged” by the company’s progress in clearing up its missteps, and that progress on OI margins will be the key catalyst for outperformance in the second half of the year.
According to Insider Monkey’s Q2 data, 252 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) on June 30, compared to 271 funds in the previous quarter. Skye Global Management is a prominent position holder in the company, with 15.4 million shares worth $1.6 billion.
Here is what Vulcan Value Partners specifically said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2022 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) has three components to its business model: online retail, cloud-based Amazon Web Services (AWS), and online advertising. We believe that the stock price has declined primarily due to its disappointing online retail results. Retail was extremely successful during COVID, and Amazon spent immensely to protect the consumer experience including buying extra inventory, buying inventory ahead of time, securing alternate shipping routes and adding extra warehouse space. We believe this long-term behavior has been successful for Amazon as customer retention and engagement remain at high levels. Post-COVID, the company is in the process of rightsizing its cost structure, and it is facing a tough period of comparisons. The retail segment is the smallest contributor to our overall value. The majority of the company’s value is in AWS, which we believe is one of the best businesses in the world. AWS’ revenue is expected to be approximately $80 billion this year, which is nearly double the amount in 2020. The company’s online advertising has turned into an attractive business that did not exist 15 years ago, and we estimate its revenue to be around $40 billion this year.”
