Need A Core Tech Holding? Buy Amazon (AMZN) Stock

Qualivian Investment Partners recently released its Q2 2020 Investor Letter, a copy of which you can download here. The fund’s performance in Q2 was ahead of the S&P 500 by 9.6% and 9.5% on a gross and net basis. You should check out Qualivian Investment Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Qualivian Investment Partners highlighted a few stocks and Amazon.Com Inc (NASDAQ:AMZN) is one of them. Amazon.Com Inc (NASDAQ:AMZN) is a technology company based in Seattle. Year-to-date, Amazon.Com Inc (NASDAQ:AMZN) stock gained 80.9% and on August 24th it had a closing price of $3,307.46. Here is what Qualivian Investment Partners said:

“Amazon: AMZN shares, along with many other eCommerce participants, have been on a strong run this year, outperforming the S&P 500 materially since February. COVID is pulling forward years of eCommerce migration and AMZN is the big winner with a commanding share of key US and European markets – potentially even gaining share from an already dominant market position. Alongside this, cloud migration should continue to accelerate as the costbenefit of outsourcing to the cloud dominates in-hosting. Operating cash flow increased 42% last quarter to $51.2 billion for the trailing twelve months ended June 30, 2020. Amazon Web Services grew revenue at 29% last quarter and operating income grew by 58%. The internet infrastructure is effectively an oligopoly with AMZN as the biggest player. AMZN is currently trading at a price to operating cash flow ratio of 30X. This multiple does not incorporate the optionality that AMZN has as a dominant online and infrastructure platform. AMZN has multiple growth options going forward, some resulting from its enormous and hard to replicate advantage of free user data, together with the increasing application of artificial intelligence to that data. AMZNs competitive advantage is getting stronger. The key risks are regulatory and political.”

Pixabay/ Public Domain

Earlier this month, we published an article revealing that Hayden Capital is bullish about Amazon.Com Inc (NASDAQ:AMZN) stock. The investment firm talked about the company’s stock performance and valuation metrics.

In Q1 2020, the number of bullish hedge fund positions on Amazon.Com Inc (NASDAQ:AMZN) stock increased by about 24% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Amazon’s growth potential. Our calculations showed that Amazon.Com Inc (NASDAQ:AMZN) is ranked #1 among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out ideas like this under-the-radar stock to identify the next tenbagger. We go through lists like the 10 most profitable companies in America to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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