Starter Stock Portfolio: 5 Safe Stocks To Buy

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

Number of Hedge Fund Holders: 240

Amazon.com, Inc. (NASDAQ:AMZN) is one of the safest stocks due to its dominance in the growing e-commerce industry. Amazon.com, Inc. (NASDAQ:AMZN)’s Cloud business is also one of the biggest growth catalysts for the stock. Amazon.com, Inc. (NASDAQ:AMZN) is actively expanding into other areas, including entertainment and healthcare.

Recently, BofA praised Amazon.com, Inc. (NASDAQ:AMZN)’s market share in the home furnishings segment. BofA said that Amazon.com, Inc. (NASDAQ:AMZN) was one of the companies that have taken away the home furnishing market share from Bed Bath and Beyond.

At the end of the last quarter of 2022, 240 out of the 943 hedge funds tracked by Insider Monkey reported owning stakes in Amazon.com, Inc. (NASDAQ:AMZN). The biggest stakeholder of Amazon.com, Inc. (NASDAQ:AMZN) among these hedge funds was Natixis Global Asset Management’s Harris Associates which had a $1.6 billion stake in the company.

Artisan Global Opportunities Fund made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer. The company has gone through a period of massive investment as it doubled its fulfillment network and hired over 800,000 people to meet growing demand over the past few years. Capital expenditure (capex) in the 2017 to 2019 period was $10 billion – $17 billion per year before ramping up to $40 billion in 2020, $61 billion in 2021 and is expected to end 2022 at another $61 billion. We believe the company is in the later innings of this capex cycle and will be transitioning toward a period of harvesting those investments through higher margins and free cash flow generation. At a valuation that appears to be discounting a deteriorating environment for consumer spending, we decided to start a GardenSM position.”