Tsai Capital Corporation, an investment management firm, released its fourth quarter 2025 investor letter. A copy of the letter can be downloaded here. Tsai Capital Growth Equity Strategy gained 8.5% before fees and 7.6% after fees for the year ended December 31, 2025, compared to the S&P 500 Index’s 17.9% return. Tsai Capital Growth Equity Strategy has gained 970% cumulatively before fees and 658% after fees, since its inception 26 years ago, compared to the S&P 500 Index’s total return of 639%. The strategy’s objective is to invest long-term in exceptional companies that can quickly and effectively allocate capital towards the most promising ideas and talent. Currently, the portfolio is invested in 17 high-quality growth companies across sectors. In addition, you can check the top five holdings of the Strategy to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Tsai Capital Corporation highlighted stocks like Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores. On January 16, 2026, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $243.01 per share. One-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 5.28%, and its shares gained 3.57% of their value over the last 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $2.598 trillion.
Tsai Capital Corporation stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2025 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) —Year of First Purchase: 2017) Established in 1994 by Jeff Bezos within the humble confines of his garage, Amazon has evolved into a colossus that commands unparalleled dominance across its diverse markets. Despite its immense scale, the company’s e-commerce arm continues to capture additional market share with remarkable agility. Meanwhile, its cloud computing powerhouse, Amazon Web Services (AWS), stands as the undisputed leader in its domain. We estimate that AWS currently accounts for more than 50% of Amazon’s aggregate operating profits.
Both the retail operations and AWS have significant competitive advantages and offer exceptional value to customers. Eschewing the temptation to exploit its vast stature for immediate profit maximization, Amazon embraces a scale-economies-shared business model, generously redistributing a substantial share of its margins back to consumers. This strategic benevolence ignites a virtuous flywheel, perpetually strengthening the company’s ecosystem.
By channeling substantial investments into its operations today to create even greater shareholder value tomorrow, Amazon obscures the true magnitude of its latent earnings potential. As shoppers increasingly pivot from brick-and-mortar retail to digital marketplaces, and as vast troves of data transition from local servers to cloud environments, we anticipate that Amazon’s revenues will expand at a compound annual growth rate of approximately 10% over the next five years, with earnings per share poised to more than double during that timeframe.”
Amazon.com, Inc. (NASDAQ:AMZN) is in first position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 332 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the third quarter, which was 325 in the previous quarter. In Q3 2025, Amazon.com, Inc. (NASDAQ:AMZN) reported $180.2 billion in revenue, up 12% year-over-year, excluding the impact from foreign exchange rates. While we acknowledge the risk and potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Amazon.com, Inc. (NASDAQ:AMZN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Amazon.com, Inc. (NASDAQ:AMZN) and shared the list of AI stocks in focus on Wall Street. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
