Amazon.com (AMZN) Declined Amid Concerns Over Cost Cuts and AWS Growth

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q1 2025 investor letter. A copy of the letter can be downloaded here. The market faced a challenging start to 2025, with the S&P 500 Index declining 4.27% and the Russell 1000 Growth Index falling 9.97% in the first quarter. Against this backdrop, the fund dropped 7.21%, outperforming its growth benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks such as Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores that operate through North America, International, and Amazon Web Services (AWS) segments. The one-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 10.01%, and its shares gained 14.95% of their value over the last 52 weeks. On May 30, 2025, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $205.01 per share with a market capitalization of $2.176 trillion.

RiverPark Large Growth Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2025 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) declined during the quarter following a strong run in 2024, as investors questioned the durability of cost cuts and the pace of AWS revenue growth reacceleration. However, the company continues to post improved margins across both retail and cloud segments, and its advertising business is emerging as a powerful growth and profitability driver. We believe Amazon remains in the early stages of a multi-year margin expansion cycle and that its dominant position in e-commerce, cloud, and digital advertising supports substantial long term value creation.”

Amazon.com, Inc. (NASDAQ:AMZN) is in first position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 328 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the first quarter compared to 339 in the fourth quarter. In Q1 2025, Amazon.com, Inc. (NASDAQ:AMZN) achieved global revenue of $155.7 billion, representing an 10% year-over-year growth excluding the impact of foreign exchange. While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Amazon.com, Inc. (NASDAQ:AMZN) and shared the list of AI stocks gaining Wall Street’s attention. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.