Billionaire David Tepper’s Top 10 Stock Picks

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders as of Q4: 339

Appaloosa Management’s Equity Stake: $570.41 Million

Amazon.com, Inc. (NASDAQ:AMZN) reported robust financial performance for the fourth quarter of 2024, with total revenue increasing by 11% year-over-year, bringing the company’s annual revenue to an impressive $638 billion. Net income experienced particularly significant growth, surging 90% to $5.53 per diluted share compared to the previous year.

Investor confidence in Amazon.com, Inc. (NASDAQ:AMZN) remains strong; by the end of Q4 2024, Appaloosa Management held 2.6 million shares of Amazon, valued at over $570 million. Hedge fund positions in the company grew notably too, with 339 of the 1,009 funds tracked by Insider Monkey reporting stakes in the company, up from 286 in the previous quarter. The collective value of these holdings reached nearly $69.04 billion, signaling a firm belief in Amazon’s long-term growth potential, particularly in AI-powered innovation and its expansive logistics operations.

Amid these operational and financial developments, Amazon.com, Inc. (NASDAQ:AMZN) has also had to navigate the effects of shifting global trade policies. CEO Andy Jassy addressed the ongoing impact of tariffs imposed by President Donald Trump’s administration, acknowledging that many of Amazon’s third-party sellers, who now account for around 60% of all products sold on the platform, are particularly vulnerable to rising costs, especially as a significant portion of them either operate from or source products in China. Jassy noted in a CNBC interview that sellers would likely attempt to pass additional tariff-related costs onto consumers, as most businesses lack the margin flexibility to absorb such increases themselves.

In response to the tariffs, Amazon.com, Inc. (NASDAQ:AMZN) took proactive measures, including “strategic forward inventory buys” and renegotiating terms on certain purchase orders to help stabilize pricing. Nonetheless, the company began canceling some direct import orders from Chinese vendors, particularly in categories like home goods and kitchen accessories, following the tariff announcement. Consultants revealed that several suppliers had products ready for pickup at shipping ports, only to have their orders abruptly canceled through Amazon’s internal Vendor Central system, underscoring the immediate operational consequences of these geopolitical shifts on Amazon’s global supply chain.