Amazon.com Inc. AMZN has emerged as the most popular stock among hedge funds by the end of the second quarter.
What Happened: Amazon, the e-commerce and cloud computing giant, was held by 411 hedge funds at the end of June, marking a net increase of 13 investors from the previous quarter, Institutional Investor reported citing data from SEI Novus.
This shift saw Amazon surpass Microsoft Corp. MSFT, which experienced a net loss of six hedge fund investors, bringing its total to 399. Microsoft had maintained the top spot for over two years.
New hedge fund investors in Amazon included Discovery Capital Management, and Hound Partners, based on their second-quarter 13F filings.
As of Jun 30, according to data from SEI Novus, the 10 most widely held stocks among hedge funds are as follows: Amazon.com Inc. leads with 411 hedge fund investors, followed closely by Microsoft with 399, and Alphabet Inc. Class A GOOGL with 316.
Apple Inc. AAPL and Meta Platforms Inc. META hold 314 and 306 positions, respectively. NVIDIA Corp. NVDA is held by 296 hedge funds, while Visa Inc. V is held by 249. Alphabet Inc. Class C GOOG has 244, Mastercard Inc. MA has 216, and Berkshire Hathaway Inc. BRK is held by 204 hedge funds.
Other notable stocks with significant hedge fund interest include Broadcom Inc. AVGO and Taiwan Semiconductor Manufacturing Co. TSM, both ranking among the top 20 most widely held stocks.
See Also: Top Nvidia Analyst Sees No Major Impact From Blackwell Delay, But Flags One Caveat He’s Wary About Ahead Of Earnings
Why It Matters Amazon’s rise to the top of hedge fund preferences is significant in the context of its recent advancements and strategic moves.
On Friday, Amazon CEO Andy Jassy highlighted the impact of their generative artificial intelligence assistant, Amazon Q, which has saved the company $260 million and 4,500 developer-years of work. This AI tool has drastically reduced software upgrade times, demonstrating Amazon’s commitment to innovation and efficiency.
Additionally, Amazon’s collaboration with Accenture to launch the Accenture Responsible AI Platform powered by Amazon Web Services (AWS) further underscores its leadership in AI. This platform aims to help organizations adopt and scale AI securely and efficiently.
Recently, Eric Jackson the founder of EMJ Capital who sold Amazon, in July, said the shares of the e-commerce giant are "darn" cheap, as on a five-year forward price/earnings basis, it was trading at an all-time low multiple. There was nothing wrong with the earnings the company reported a couple of weeks ago, he said, adding the stock is definitely on his radar.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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