Warren Buffett is Buying the Dip on These 3 Stocks

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

Number of Hedge Fund Holders: 252

YTD Percentage Decline in Share Price as of August 18: 16.34%

Amazon.com, Inc. (NASDAQ:AMZN) stock has dropped more than 16% year to date as of August 18, and it is one of the most prominent stocks that Warren Buffett bought on the dip in the June quarter. Berkshire Hathaway strengthened its Amazon.com, Inc. (NASDAQ:AMZN) stake by 1900% in Q2 2022. The hedge fund owned 10.6 million shares worth $1.13 billion, which accounts for 0.37% of the total portfolio. 

Amazon.com, Inc. (NASDAQ:AMZN) reported its Q2 results on July 28, posting a loss per share of $0.20, missing consensus estimates by $0.32. The revenue of $121.23 billion gained 7.21% on a year over year basis, outperforming Wall Street forecasts by $2.09 billion. 

In light of headlines that Amazon.com, Inc. (NASDAQ:AMZN) will charge an incremental 35 cent per item fee on Fulfilled By Amazon items sold in the United States and Canada beginning in mid-October, Morgan Stanley analyst Brian Nowak said that this fee is a result of Amazon.com, Inc. (NASDAQ:AMZN) increasing FBA fees by about 5% earlier in the year. He estimated the 35c fee will boost EBIT notably and called the move a “positive signal” about Amazon.com, Inc. (NASDAQ:AMZN)’s “confidence in the health of its U.S. seller offering and its consumer”. He maintained an Overweight rating and a $175 price target on Amazon.com, Inc. (NASDAQ:AMZN) shares on August 17.

According to Insider Monkey’s Q2 data, 252 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 271 funds in the last quarter. Skye Global Management is a prominent position holder in the company, with 15.4 million shares worth $1.6 billion. 

Here is what Alphyn Capital has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2022 investor letter:

“It is interesting to see how sentiment on Amazon went from positive to negative in one quarter, as it transpired that it too was not as immune to post-covid slowdowns as some, myself included, had expected. However, I feel confident that Amazon, as the apex predator in the e-commerce space, will navigate market softness better than most other retailers. Moreover, once it finishes with its current capex cycle, it will continue to improve margins. Andy Jassy is reportedly spending one-third of his time focused on capacity and supply issues in the retail division.”

You can also take a look at 10 Stocks to Watch as Cathie Wood’s Fund Starts to Rebound and Top 10 Stock Picks of Citadel’s Wellington Fund. 

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