Amazon.com (AMZN) Hits Lowest Forward Earnings Multiple in 12 Months Since 2008

Sands Capital, an investment management company, released its “Sands Capital Select Growth Strategy” Q1 2025 investor letter. A copy of the letter can be downloaded here. Select Growth Strategy primarily targets U.S. companies that are leading the way in crucial areas of positive structural transformation within the economy. U.S. growth equities, tracked by the Russell 1000 Growth Index, experienced their poorest quarterly performance since 2022, significantly lagging behind U.S. value equities, represented by the Russell 1000 Value Index, in the widest gap observed since 2001. The strategy slightly underperformed the Russell 1000 Growth Index in the quarter. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its first-quarter 2025 investor letter, Sands Capital Select Growth Strategy 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.

Sands Capital Select Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2025 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is one of the largest ecommerce retailers and cloud infrastructure providers globally. Amazon reported solid quarterly results, in our view, with stable revenue growth and margin expansion in line with trends seen across the hyperscalers, including Meta. The company’s 2025 capital expenditure guidance—exceeding $100 billion—was well above expectations, driven by intensifying investment in AI infrastructure. Notably, the stock ended the quarter trading at its lowest 12-month forward earnings multiple since 2008.”

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.