Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

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

Growth Investment Ratio: 137%

Number of Hedge Fund Holders: 308

Amazon.com, Inc. (NASDAQ:AMZN) is one of the dominating players in the global eCommerce and cloud computing industries. These provide it with access to a volume-heavy business in the form of eCommerce, and a margin-heavy, recurring revenue-friendly business through cloud computing. Amazon.com, Inc. (NASDAQ:AMZN) is one of the few companies in the world with access to a foundational AI model. Called Claude, this model is courtesy of the firm’s investment in Anthropic – a firm set up by former OpenAI employees. Amazon.com, Inc. (NASDAQ:AMZN)’s resources, as evidenced by $71 billion in cash and equivalents, also provide it with the resources to develop an end-to-end AI stack. The latest bit on this front is a custom AI chip that Amazon.com, Inc. (NASDAQ:AMZN) believes will help it compete with NVIDIA’s GPUs on a cost basis. Additionally, the firm also hopes to provide businesses access to NVIDIA’s GPUs through its cloud computing business. On the e-commerce front, Amazon.com, Inc. (NASDAQ:AMZN)’s business depends on high volumes and sustained consumer spending in key seasons such as the upcoming holiday season.

Polen Capital mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2024 investor letter. Here is what the fund said:

“The largest absolute detractors were Alphabet, Airbnb, and Amazon.com, Inc. (NASDAQ:AMZN). Amazon’s position as a notable detractor speaks more to the size of the position than the magnitude of the underperformance, as the company delivered a solid set of results during the quarter.

We trimmed our positions in Amazon, Alphabet, and Microsoft during the quarter. As we have previously, we trimmed Amazon slightly to bring the weight back to 15% for risk management purposes. We remain very positive on our investment thesis of strong revenue growth and even stronger earnings and free cash flow growth continuing over the next few years.”

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