5 Technology Stocks to Buy Now According to Stanley Druckenmiller

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

Number of Hedge Fund Holders: 279     

Amazon.com, Inc. (NASDAQ:AMZN) is a diversified technology firm with core interests in ecommerce. Securities filings show that the hedge fund led by Druckenmiller owned 56,882 shares of the company at the end of the fourth quarter of 2021 worth more than $189 million, representing 6.87% of the portfolio. The fund decreased its stake in the firm by 42% between October and December compared to third quarter filings. The firm has featured in the Druckenmiller portfolio consistently since early 2017. 

On March 25, Evercore ISI analyst Mark Mahaney maintained an Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) stock with a price target of $4,300, identifying the stock as the “number one mega cap internet long idea” and noting that the market was underappreciating opportunities such as “shipping elasticity, brand advertising revenue, and grocery” in relation to the stock. 

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Citadel Investment Group is a leading shareholder in Amazon.com, Inc. (NASDAQ:AMZN) with 4.1 million shares worth more than $13 billion. 

In its Q4 2021 investor letter, Mercator International, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said: 

“Transformative technologies often generate euphoria. People are excited by the big new thing that is changing the world. We saw this pattern with the boom of westward canal transportation at the dawn of the nineteenth century. Railway stocks similarly attracted large numbers of eager investors a few decades later. Then came the electrification of America, the telephone, and the automobile industry, to name just a few transformative technologies.

The initial euphoric phase always ends with a reality check. Valuations come back to earth. At the end of the cycle, only a few companies remain standing. A shakeout has a way of clarifying the field of opportunities.

For example, readers may recall that when the internet bubble burst two decades ago, Amazon.com, Inc. (NASDAQ:AMZN) stock suffered greatly but pet.com was gone. For those investors who had stayed on the sidelines, this was an excellent time to buy Amazon.com, Inc. (NASDAQ:AMZN). The company’s business model had shown its merits and competition was rapidly shrinking. The stock price was now also much more attractive.”