What Makes Amazon.com (AMZN) an Attractive Investment? - InvestingChannel

What Makes Amazon.com (AMZN) an Attractive Investment?

Arch Capital Management, an investment advisory firm, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The firm is more focused on finding deep-value stocks. The start of 2023 was fine for the fund, and it gained 9.4% year-to-date compared to 7.5% for the S&P 500 Total Return Index. The cumulative returns of the fund since inception in 2021 is (26.1%) compared to the 14.5% return for the Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Arch Capital highlighted stocks like Amazon.com, Inc. (NASDAQ:AMZN) in the first quarter 2023 investor letter. Headquartered in Seattle, Washington, Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products and subscriptions. On May 12, 2023, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $110.26 per share. One-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 7.32%, and its shares lost 0.50% of their value over the last 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $1.131 trillion.

Arch Capital made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2023 investor letter:

“Replacing our Wix investment is Amazon.com, Inc. (NASDAQ:AMZN), a company we are sure you have heard of before. We believe the company’s long-term growth runway, profit potential, and competitive advantages were being vastly underrated in early January when its market cap was well below $1 trillion. We think early January was one of those rare times you could buy a special business like Amazon at a discounted valuation. Our hope is that – if we are right about its competitive advantages in retail and cloud computing – our Amazon stake will end up being a permanent holding in the limited partnership.”

Amazon.com, Inc. (NASDAQ:AMZN) is in 2nd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 240 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the fourth quarter which was 269 in the previous quarter.

We discussed Amazon.com, Inc. (NASDAQ:AMZN) in another article and shared Diamond Hill Large Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 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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