Is it Still Worthy to Invest in Amazon.com (AMZN)?

Davis Funds, an investment management firm, published its “Davis Opportunity Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. In the year-to-date period through July 31, Davis Opportunity Fund returned 23.32%, outperforming the S&P 1500 Index’s 18.07% return. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Davis Opportunity Fund, in its Q3 2021 investor letter, mentioned Amazon.com, Inc. (NASDAQ: AMZN) and discussed its stance on the firm. Amazon.com, Inc. is a Seattle, Washington-based e-commerce company with a $1.7 trillion market capitalization. AMZN delivered a 4.08% return since the beginning of the year, while its 12-month returns are up by 7.18%. The stock closed at $3,389.79 per share on December 03, 2021.

Here is what Davis Opportunity Fund has to say about Amazon.com, Inc.  in its Q3 2021 investor letter:

“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”

Photo by Sunrise King on Unsplash

Based on our calculations, Amazon.com, Inc. (NASDAQ: AMZN) ranks 3rd in our list of the 30 Most Popular Stocks Among Hedge Funds. AMZN was in 242 hedge fund portfolios at the end of the third quarter of 2021, compared to 271 funds in the previous quarter. Amazon.com, Inc. (NASDAQ: AMZN) delivered a -2.54% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.