17. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holdings in Q1 2026: 353
eCommerce and cloud computing giant Amazon.com, Inc. (NASDAQ:AMZN)’s shares are up by 32% over the past year and by 19% year-to-date. Bank of America discussed the firm on May 21st as it kept a Buy rating and a $310 share price target. Among the factors that BofA discussed included the impact of AI demand on the firm’s cloud computing business and increasing profitability, along with a growing backlog. Amazon.com, Inc. (NASDAQ:AMZN) suffered a setback earlier this week when Blue Origin’s New Glenn rocket exploded in Florida. The rocket was due to fly the firm’s internet satellites to orbit, and while the payload remained safe, the launch pad’s destruction could impact Amazon.com, Inc. (NASDAQ:AMZN)’s launch timeline for the satellites. Cramer briefly discussed the incident:
“Amazon is down because, their satellites were on board the Blue Origin, that was now, I don’t know if anyone saw that.”
Artisan Value Fund discussed Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2026 investor letter:
“We initiated four new positions in Q1, an above-average pace of activity. Typically, we add 1–2 new positions per quarter, averaging 1.7 per quarter over the past 5 years. Increased market volatility and greater dispersion in US equities created more opportunities to invest in companies that meet our three margin of safety criteria: attractive business economics, sound financial condition and compelling valuation. We also used the increased volatility to upgrade overall portfolio quality. Our three largest new positions were Amazon.com, Universal Music Group (UMG) and IQVIA Holdings.
Amazon.com, Inc. (NASDAQ:AMZN) 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.”
