5 Stocks to Invest In According to Stephen White’s SW Investment

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

White’s Stake Value: $41,281,000
Percentage of Stephen White’s 13F Portfolio: 15.79%
Number of Hedge Fund Holders: 271

Amazon.com, Inc. (NASDAQ: AMZN) sells consumer goods and subscriptions online. The company was founded in 1994 and stands third on the list of 10 stocks to invest in according to Stephen White’s SW Investment. Amazon.com, Inc. (NASDAQ: AMZN) currently has a market capitalization of $1.64 trillion. 

The hedge fund chaired by Stephen White holds 12,000 shares in Amazon.com, Inc. (NASDAQ: AMZN), worth over $41 million. SW Investment’s stake in Amazon shares increased by 300% in the second quarter of 2021. Hedge funds are loading up on Amazon.com, Inc. (NASDAQ: AMZN), as Insider Monkey’s data shows that 271 hedge funds held stakes in the company in the second quarter of 2021, compared to 243 funds a quarter earlier. 

Argosy Investors, in its second-quarter 2021 investor letter, mentioned Amazon.com, Inc. (NASDAQ: AMZN). Here is what the fund has to say about Amazon in its letter:

“So how are our largest holdings affected in a world of higher wage inflation? As a general rule, I will evaluate current and potential future holdings on their capital intensivity and their ability to raise prices. Amazon is now (a part of) our top 5 largest equity holdings. Amazon is a more complex story. Their AWS business is largely a similar story to Facebook. Their first-party retail business is very asset-and labor-intensive given their extensive warehousing footprint. I think Amazon would have more pricing power than any other player, and despite being one of the largest employers in the US, bricks-and-mortar retail is likely still more asset- and labor-intensive than Amazon’s ecommerce footprint. With all that said, overall Amazon’s first-party business would be adversely impacted by inflation, but the combination of Amazon’s AWS and advertising business should provide fairly robust inflation protection.”