Investment management company Vulcan Value Partners recently released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Vulcan Value Partners prioritizes long-term returns and lower risk over short-term performance. In the quarter, the Large Cap Composite (Net) returned 9.5%, the Small Cap Composite (Net) returned 13.3%, the Focus Composite (Net) returned 10.4%, the Focus Plus Composite (Net) returned 10.5%, and the All-Cap Composite (Net) returned 9.0%. The firm reported strong compounding across its strategies in Q2 2026. Management highlighted that their exceptional holdings remain deeply undervalued relative to “what is working” in the market, viewing this as an excellent opportunity for patient investors. In addition, please check the Firm’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Vulcan Value Partners highlighted Amazon.com, Inc. (NASDAQ:AMZN) as a notable contributor. Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology and retail company known for its leading online marketplace and cloud platform. On July 30, 2026, Amazon.com, Inc. (NASDAQ:AMZN) closed at $235.50 per share. The one-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 10.52%, and its shares gained 32.50% over the past 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $2.53 trillion.
Vulcan Value Partners stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2026 investor update:
“Amazon.com, Inc. (NASDAQ:AMZN) reported strong results during the first quarter. AWS revenue growth accelerated to 28%, its fastest growth rate in 15 quarters. Amazon Bedrock, a fully managed service providing secure access to leading large language models, grew 170% quarter-over-quarter. 125,000 customers are using Amazon Bedrock including 80% of the Fortune 100. Most of Amazon Bedrock’s inference demand is powered by Amazon’s internal Trainium chips. Amazon’s chips business, which consists of Trainium and Graviton, is now over a $20BN run-rate business growing triple-digits year over-year. Amazon’s utilization of its own proprietary chips helps moderate capex spend relative to competitors. Advertising revenue growth remains in the low 20%. The core retail business (retail excluding advertising) continues to show improving profitability despite rising launch costs for Amazon’s satellite service. Paid unit growth in the core retail business was 15% in the quarter, the fastest unit growth in 19 quarters. Amazon remains a dominant world-class company with powerful secular tailwinds in place including its e-commerce penetration, digital advertising growth, and the transition to the cloud.”
Amazon.com, Inc. (NASDAQ:AMZN) is in top position on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 353 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the first quarter, compared to 381 in the previous quarter. Amazon.com, Inc. (NASDAQ:AMZN) reported a strong Q1 2026, with revenue increasing 17% year-over-year to $181.5 billion. 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 stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q2 2026 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.
