Amazon.com, Inc.

(NASDAQ Global Select)
Back to all articles
Somewhat Bullish +50

Amazon.com, Inc. (AMZN): Israel Englander Has a Long-Term Bet on This Stock

AI-generated analysis

πŸ“ˆ Amazon.com Inc. (NASDAQ: AMZN) features in Israel Englander Stock Portfolio Top 10 Stock Picks for the Israel Englander Fund.

πŸ’Ό The fund first disclosed a stake in Amazon in Q4 2010, growing holdings to 16.3 million shares by Q3 2015 before trimming and reopening a new position in Q3 2017.

πŸ“‰ Recent fourth-quarter 2025 filings show the fund reduced its holding to 3.6 million shares, representing a 3% decrease from the previous quarter.

πŸ€– The article highlights Amazon's aggressive spending on AI and acceleration of AWS revenue growth to 24% in Q4 2025 after a period of slower expansion.

πŸ’° Institutional investors are noting Amazon Web Services' record backlog of $244 billion, which represents a 40% year-over-year increase.

πŸ”§ Amazon's custom AI chips, Trainium and Graviton, now generate over $10 billion in annualized revenue with triple-digit growth rates.

πŸ’‘ These proprietary chips reduce dependency on expensive Nvidia hardware and help expand profit margins for the tech giant.

⚠️ Israel Englander notes that while Amazon has risk and potential, he believes certain AI stocks offer higher returns with a shorter timeframe.

πŸ” The fund manager suggests investors check out their report on an alternative "cheapest AI stock" if seeking 10,000% upside potential over Amazon.

πŸ“… This content was published on April 10, 2026, and includes disclosures indicating no conflict of interest with the funds analyzed.

Bullish Signals
  • Amazon.com, Inc. (NASDAQ:AMZN) continues to receive strong institutional support with its custom AI chips, Trainium and Graviton, now generating over $10 billion in annualized revenue at triple-digit growth rates.
  • This vertical integration reduces dependency on expensive Nvidia hardware and expands profit margins while supporting Amazon's aggressive investment in artificial intelligence.
  • Amazon Web Services (AWS) revenue growth has accelerated to 24% in Q4 2025, demonstrating a strong rebound after a period of slower growth.
  • Institutional investors are tracking AWS's record $244 billion backlog, which increased by 40% year-over-year, signaling sustained demand for cloud services.
  • Israel Englander has maintained a long-term conviction in AMZN since opening a new position in the third quarter of 2017, with filings showing continued ownership through the fourth quarter of 2025.
Risk Factors
  • Israel Englander's fund reduced its Amazon (AMZN) position by 3% in the fourth quarter of 2025 compared to the previous quarter, holding only 3.6 million shares.
  • The article explicitly acknowledges that while AMZN has risks and potential, Israel Englander believes some other AI stocks hold greater promise for delivering higher returns within a shorter time frame, suggesting relative weakness.
  • Institutional investors are actively shifting toward cheaper AI stocks perceived as having significantly higher upside potential compared to Amazon.
  • Aggressive spending on AI is noted by hedge funds expecting fruit in coming months, but this implies uncertainty about whether current investments will meet near-term expectations.
  • Amazon's custom AI chips reduce dependency on Nvidia, but this strategic shift also highlights the broader competitive landscape where alternative vendors are gaining traction.
Full Analysis
Amazon.com, Inc. (NASDAQ:AMZN) is highlighted as a long-term holding within the Israel Englander Stock Portfolio, which first disclosed its stake in Amazon during the fourth quarter of 2010 with nearly 700,000 shares. The fund gradually increased this position to 16.3 million shares by the third quarter of 2015 before trimming and eventually selling off holdings, only to re-establish a new position in the third quarter of 2017 that has consistently appeared in quarterly 13F filings since then. According to fourth-quarter 2025 filings, the fund currently holds 3.6 million shares, representing a 3% decrease from the previous quarter's holdings. Investment interest is driven by Amazon's aggressive investment in artificial intelligence and improving financial metrics within its cloud division. After a period of slower growth, AWS revenue acceleration reached 24% in the fourth quarter of 2025, supported by a record backlog of $244 billion that is up 40% year-over-year. Additionally, the company's vertical integration strategy through custom AI chips, specifically Trainium and Graviton, has evolved into a business with over $10 billion in annualized revenue growing at triple-digit rates. This technology reduces dependency on expensive Nvidia hardware while expanding profit margins for Amazon. While the article acknowledges Amazon's risk and potential as an investment, it notes that some AI stocks are viewed as having greater promise for delivering higher returns within shorter time frames based on the author's conviction. The text mentions a specific report suggesting an AI stock with 10,000% upside potential but does not name it directly in this article segment. The publication also lists several unrelated market updates including UBS trimming Aflac targets, Cantor Fitzgerald lowering AbbVie targets, JPMorgan downgrading Hormel, and various other institutional investment moves alongside performance metrics for the Insider Monkey strategy.