Top 5 Stocks to Buy According to Legendary Value Investor Joel Greenblatt

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

Gotham Asset Management’s Stake Value: $43,257,000

Percentage of Gotham Asset Management’s 13F Portfolio: 1.75%

Number of Hedge Fund Holders: 242

In Q3 2021, Gotham Asset Management owned 13,168 Amazon.com, Inc. (NASDAQ:AMZN) shares, worth $43.25 million, representing 1.75% of the hedge fund’s 13F portfolio. Joel Greenblatt increased his stake in Amazon.com, Inc. (NASDAQ:AMZN) by 8% in the third quarter. 

Amazon.com, Inc. (NASDAQ:AMZN) published Q3 earnings on October 28, posting an EPS of $6.12, missing estimates by $2.78. The $110.81 billion revenue gained 15.26% year-over-year, but missed estimates by almost $785 million. 

Cowen analyst John Blackledge raised the price target on Amazon.com, Inc. (NASDAQ:AMZN) to $4,500 from $4,300 and kept an Outperform rating on the shares on December 13, calling it his Best Idea for 2022 and the top mega-cap pick.

Fisher Asset Management is one of the leading Amazon.com, Inc. (NASDAQ:AMZN) stakeholders from the 242 hedge funds that were bullish on the stock as of the third quarter of 2021. Ken Fisher’s fund holds a $6.34 billion position in Amazon.com, Inc. (NASDAQ:AMZN). 

Here is what Davis Opportunity Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:

“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”