Hedge Funds Prefer These 4 Tech Stocks Over Netflix

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

Number of Hedge Fund Holders: 279   

Amazon.com, Inc. (NASDAQ:AMZN) is a technology firm with core interests in the ecommerce business. Amazon invested nearly $11 billion into the streaming content for Amazon Prime Video in 2020 and $13 billion in 2021, complementing the subscription growth story with a nearly trillion dollar valuation. The subscription growth of Amazon Prime Video is higher than the revenue growth of Netflix. The service is on track to rake in revenue of nearly $100 billion by 2025. 

On March 25, Evercore ISI analyst Mark Mahaney kept an Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) stock with a price target of $4,300, noting that shipping elasticity, brand advertising revenue, grocery, and the cheap share price were underappreciated growth catalysts for the stock. 

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Citadel Investment Group is a leading shareholder in Amazon.com, Inc. (NASDAQ:AMZN) with 4.1 million shares worth more than $13.9 billion. 

In its Q4 2021 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said: 

“Within the traditional growth category, growing euphoria has led to bubble prices for many companies, most especially those with new and unproven business models such as those discussed above. In contrast, our research focuses on a select handful of proven growth stalwarts whose shares still trade at reasonable valuations. For example, because of concerns about future litigation and regulation, several dominant internet businesses, including Amazon.com, Inc. (NASDAQ:AMZN), trade at steep discounts to many unproven and unprofitable growth darlings that, in our view, trade at euphoric prices. While we expect a continued barrage of negative headlines around the company, as well as increased regulation in the years ahead, we do not expect a significant decline in its long-term profitability.”

You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.

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