1. Amazon.com, Inc. (NASDAQ:AMZN)
Percentage of Baupost Group’s 13F portfolio: 0.93%
Value of Baupost Group’s Stake: $ 64 million
Number of Hedge Fund Holders: 252
Known as “one of the most influential economic and cultural forces in the world”, Amazon.com, Inc. (NASDAQ:AMZN) is a giant among giants in both the tech and the retail industries. During Q2 2022, Seth Klarman added the company to his portfolio with a total stake value of $63.51 million.
DA Davidson analyst Tom Forte maintained his Buy rating and $151 price target on Amazon.com, Inc. (NASDAQ:AMZN) after the company disclosed a purchase of warehouse automation firm Cloostermans on September 12. According to the analyst, Amazon is making a “concerted effort” into the robotics / automation market with this acquisition coupled with the acquisition of iRobot announced in the previous month.
Among the hedge funds tracked by Insider Monkey, 252 funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q2 2022. As of Q2, 2022, Ken Griffin’s Citadel Investment Group owned 66.08 million shares in Amazon.com, Inc. (NASDAQ:AMZN). The hedge fund’s total stake in the company stood at over $7.01 billion, which accounted for 1.8% of its 13F portfolio.
Vulcan Value Partners, an investment management firm, mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2022 investor letter. Here’s what it said:
“Amazon.com Inc. (NASDAQ:AMZN) has three components to its business model: online retail, cloud-based Amazon Web Services (AWS), and online advertising. We believe that the stock price has declined primarily due to its disappointing online retail results. Retail was extremely successful during COVID, and Amazon spent immensely to protect the consumer experience including buying extra inventory, buying inventory ahead of time, securing alternate shipping routes and adding extra warehouse space.
We believe this long-term behavior has been successful for Amazon as customer retention and engagement remain at high levels. Post-COVID, the company is in the process of rightsizing its cost structure, and it is facing a tough period of comparisons. The retail segment is the smallest contributor to our overall value. The majority of the company’s value is in AWS, which we believe is one of the best businesses in the world. AWS’ revenue is expected to be approximately $80 billion this year, which is nearly double the amount in 2020.
The company’s online advertising has turned into an attractive business that did not exist 15 years ago, and we estimate its revenue to be around $40 billion this year.”
You can also take a look at the Long-Term Analyst: Buy These 5 Stocks and 10 Best Blue Chip Stocks To Buy.
