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Is Amazon (AMZN) a Smart Long-term Buy?

American Century recently released its Q1 2020 Investor Letter, a copy of which you can download below. American Century Focused Global Growth Fund posted a return of -16.95% for the quarter, outperforming its benchmark, the MSCI ACWI Index which returned -21.37% in the same quarter. You should check out American Century’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.

In the said letter, American Century highlighted a few stocks and Amazon.com Inc. (NASDAQ:AMZN) is one of them. Amazon provides e-commerce, cloud computing, digital streaming, and artificial intelligence services. Year-to-date, Amazon.com Inc. (NASDAQ:AMZN) stock gained 36.5% and on May 20th it had a closing price of $2497.94. Here is what American Century said:

“Amazon. The online marketplace benefited from a surge in shoppers after virus-related panic buying led to low supplies at brick-and-mortar stores. High demand for Amazon Web Services by instant messaging platform Slack, remote conferencing service Zoom and similar companies also lifted the stock.

Amazon. We believe margins for e-commerce company Amazon will be boosted by the growing impact of advertising on its bottom line, its cloud computing services and rising sales derived from third-party sellers. Revenue growth remains sustainable, and the company remains a dominant global e-commerce player.”

Amazon.com, Inc. (NASDAQ:AMZN), Sign, Building, headquarters, Logo, Brand

In Q4 2019, the number of bullish hedge fund positions on Amazon.com Inc. (NASDAQ:AMZN) stock increased by about 12% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with AMZN’s growth potential. Amazon.com Inc. (NASDAQ:AMZN) still ranked #1 among the 30 most popular stocks among hedge funds. The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we believe electric vehicles and energy storage are set to become giant markets, and we want to take advantage of the declining lithium prices amid the COVID-19 pandemic. So we are checking out investment opportunities like this one. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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

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