Home Hedge Funds Should You Hold Amazon.com (AMZN) for the Long Term?

Should You Hold Amazon.com (AMZN) for the Long Term?

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Tsai Capital Corporation, an investment management firm, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. For the year ended December 31, 2023, the Tsai Capital Growth Equity Strategy gained 56.81%, gross of fees, and 55.07%, net of fees, as compared with a total return of 26.29% for the S&P 500 Index. Since its inception 24 years ago, the strategy gained 691%, before fees, and 472%, after fees, compared to a 401% total return for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Tsai Capital Corporation featured stocks such as Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2023 investor letter. Headquartered in Seattle, Washington, Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products and subscriptions. On January 12, 2024, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $154.62 per share. One-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 3.10%, and its shares gained 57.58% of their value over the last 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $1.59 trillion.

Tsai Capital Corporation stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

Amazon.com, Inc. (NASDAQ:AMZN) ($151.94 – up 80.9% for the year. Recent high $155.63): Amazon, founded by Jeff Bezos in his garage in 1994, is the most dominant e-commerce company and owns Amazon Web Services (AWS), the leading cloud provider. Andy Jassy, formerly head of AWS, became CEO of Amazon in 2021 and is executing exceptionally well. Because of their scale, AWS and Amazon retail benefit from numerous competitive advantages, which in turn drive a high customer value proposition. For example, instead of using the benefits of size to maximize short-term profits, Amazon operates with a scale-economies-shared business model, giving back some of its margin to the underlying consumer. This in turn drives further demand and strengthens the company’s ecosystem. Amazon’s long-term strategy masks the underlying earnings power of the business. As consumers continue to shift their spending from in-store purchases to online shopping, and as data continues to migrate from on-premise servers to the cloud, we expect Amazon to grow revenue at a low double-digit rate for at least the next five years and increase its profit margins over time.”

Amazon

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Amazon.com, Inc. (NASDAQ:AMZN) is in second position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 286 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of third quarter which was 278 in the previous quarter.

We discussed Amazon.com, Inc. (NASDAQ:AMZN) in another article and shared the list of most widely held stocks by individuals. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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

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