We recently published a list of Billionaire Mason Morfit’s 10 Stock Picks with Highest Upside Potential. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against Billionaire Mason Morfit’s other stock picks with highest upside potential.
Mason Morfit, the billionaire CEO of ValueAct Capital, runs one of Wall Street’s most respected activist hedge funds. Unlike funds that make headlines through hostile takeovers, ValueAct works quietly behind the scenes to unlock value with a significant record of successful investments. As a “soft activist,” the fund partners with company management to create reforms that help the business and its investors.
ValueAct was founded by Jeff Ubben in 2000, with Morfit taking over in 2020 as CEO. It has stuck to the fund’s disciplined style, promising “win-wins for our companies and our investors”. As of March 2021, with over $13 billion in assets under management, the company focuses on a small number of high-conviction investments, often holding positions for years to maximize returns.
ValueAct works by finding companies that markets don’t fully understand, undervalue, or that are changing in important ways. The company’s resolution stands out and goes well with today’s unpredictable market trends. With trade problems, higher tariffs, and regulatory pressure hurting investor confidence, especially in tech and entertainment, Morfit’s steady, fundamentals-based strategy sets it apart.
These strengths become even more relevant given the broader economic turbulence in recent years. Recent economic developments have stirred up changes all over the global markets. Donald Trump’s sweeping tariffs triggered sell-offs across media and tech stocks, forcing companies to delay IPOs, postpone products, and rethink their supply chains. Bloomberg reported that entertainment companies’ stocks fell regardless of their actual trade exposure, as recession fears increased. In such an unsteady and unpredictable environment, spotting real opportunities has become harder but more crucial.
Considering these conditions, Morfit’s picks stand out because they blend resilience, innovation, and structural advantages that position these companies to succeed when markets stabilize. The combination of AI, digital transformation, and platform business models creates opportunities across industries, despite economic headwinds. By focusing on efficiency, margins, and long-term growth trends, ValueAct can invest with patience – a real advantage in today’s reactionary market.
Methodology
For this article, we analyzed Greenlight Capital’s Q4 2024 13F filings to identify Billionaire Mason Morfit’s 10 Stock Picks with the Highest Upside Potential. We then ranked the stocks in ascending order based on their estimated upside. These stocks are popular with elite hedge funds, which have been considered as well.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer entering an internet retail store, illustrating the convenience of online shopping.
Amazon.com, Inc. (NASDAQ:AMZN)
Potential Upside: 30.69%
Number of Hedge Fund Holders: 338
Amazon.com, Inc. (NASDAQ:AMZN) is Mason Morfit’s key investment, with a $117.8 million stake making up 2.68% of his portfolio. Although it’s not his biggest holding, Amazon’s strong financials and long-term cloud and AI strategies make it a compelling part of Mason Morfit’s stock portfolio.
For Q1 ended March 31, 2025, Amazon.com, Inc. (NASDAQ:AMZN) posted a revenue of $165.7 billion, up 10% from last year, while operating income jumped 20% to $18.4 billion. The company’s free cash flow over the past year reached $25.9 billion, showing it is running efficiently. Amazon Web Services (AWS), its biggest asset, brought in $29.3 billion just this quarter and now operates at a $117 billion yearly pace. AWS’ operating income stayed strong at $11.5 billion. Meanwhile, Amazon’s ad business also grew, up 19% year-over-year to $13.9 billion in quarterly revenue.
Moreover, Amazon.com, Inc. (NASDAQ:AMZN) is continuously investing in future growth. On May 7, 2025, AWS announced it is putting $4 billion into its first cloud region in Chile, set to open in late 2026. This will be the company’s third spot in Latin America after Brazil and Mexico, helping support new tech like AI in the region.
However, tariffs might pose challenges for retail. Still, Amazon’s wide selection, competitive pricing, and dominance in everyday goods position it well. Its same-day delivery and automation investments give the company an edge in logistics.
With its core strengths in AI, ads, and cloud, Amazon.com, Inc. (NASDAQ:AMZN) remains a smart long-term bet in Morfit’s portfolio.
Overall, AMZN ranks 2nd on our list of Billionaire Mason Morfit’s stock picks with highest upside potential. While we acknowledge the potential of AMZN, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
