7. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holdings in Q1 2026: 353
Amazon.com, Inc. (NASDAQ:AMZN)’s shares are up by 8.7% over the past year and by 8% year-to-date. Wells Fargo adjusted the share price target to $313 from $312 and kept an Overweight rating on the shares on July 2nd. The coverage came ahead of the second quarter earnings season as the bank outlined that Amazon.com, Inc. (NASDAQ:AMZN) could post a solid set of results due to momentum in its Amazon Web Services (AWS) cloud computing business. Yet, Wells Fargo added that since the firm had shifted its Prime Day timeline, it might guide third quarter financials below analyst estimates. Cramer discussed Amazon.com, Inc. (NASDAQ:AMZN) in the context of the growing competition in the artificial intelligence industry:
“You don’t see how Amazon’s gotten so much better? When you ask about such and such? Amazon’s what was Rufus, but Amazon has, I think has stepped up to the plate with Alexa. . .”
Artisan Value Fund discussed Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2026 investor letter:
Amazon represents a high-quality, wide-moat franchise where near-term investment is potentially obscuring substantial long-term earnings power. The company’s core retail platform is underpinned by its logistics network built over decades and enhanced by significant investment during COVID that doubled the network. This infrastructure continues to drive efficiency gains and customer value, reinforcing Amazon’s dominant market position. Complementing this is AWS, the original hyperscale cloud platform and a critical profit engine, contributing roughly 60% of operating income. AWS remains a leading cloud platform and a key profit driver, with strong positioning in AI supported by proprietary chips such as Graviton and Trainium. Despite elevated capital expenditures tied to AI, logistics and other growth initiatives, Amazon’s financial position remains exceptionally strong, with significant net cash and a well-laddered debt profile. Current earnings understate normalized profitability, in our view, due to heavy reinvestment across multiple initiatives, including AI infrastructure, robotics and new delivery capabilities. As these investments mature, we believe both revenue growth and margins should expand. At our initial purchase, the stock traded near historic valuation lows relative to its earnings power, offering an opportunity to own a premium, structurally advantaged business at a market-like multiple, with potential additional upside from its fast-growing, high-margin advertising segment.
