Ken Fisher’s Top 5 Growth Stock Picks

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

Number of Hedge Fund Holders: 269

Fisher Asset Management’s Holdings: $5,638,171,000

Percentage of Fisher Asset Management’s Portfolio: 4.22%

Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle, Washington-based diversified technology company with a focus on e-commerce and cloud computing services. The company is also involved in advertising, artificial intelligence, and digital streaming.

In a note issued to investors on December 19, Mark Mahaney at Evercore ISI assigned Amazon.com, Inc. (NASDAQ:AMZN) stock a target price of $150 along with an Outperform rating. The analyst is bullish on the stock despite the expected weakness in demand for e-commerce and cloud computing services. However, there is a widespread belief that there will still be a significant secular shift in both these industries. Following the share price underperformance in 2022, Mahaney sees Amazon.com, Inc. (NASDAQ:AMZN) stock as an attractive investment for long-term investors.

Here’s what Farnam Street Investments said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“Change doesn’t just impact investors. Business people also bet for or against change. Jeff Bezos was once asked this exact question:

“You can build a business strategy around the things that are stable in time. It’s impossible to imagine a future ten years from now where a customer comes up and says, ‘Jeff, I love Amazon, I just wish the prices were a little higher.’ Or, ‘I love Amazon, I just wish you’d deliver a little slower.’ Impossible. So we know the energy we put into these things today will still be paying off dividends ten years from now. When you have something you know is true, you can afford to put a lot of energy into it.”

A lot of energy… and more than $172 billion in capital expenditure in the last fifteen years.

Deeper, slower moving layers turn exponential growth into “S-curves.” A rapidly dividing bacteria crashes into the resource-wall of its Petri dish. Nineteenth-century commercial robber barons were smacked by the governance layer of the Sherman Antitrust act. Amazon (NASDAQ:AMZN) Prime free shipping leaned on the creaking infrastructure of the U.S. Postal Service until it was forced to invest in its own infrastructure (all those delivery vans you see driving around).

Hopefully, next time you’re thinking about change, you can recall pace layers as a helpful construct to understand how successful systems change.