Amazon.com Inc (NASDAQ:AMZN) Ranking The second On our list Up Ten Billionaire David Tepper predicts AI stocks for 2024.
Before analyzing the stock, let's first look at David Tepper's latest earnings and 2024 investment strategy.
Billionaire David Tepper of Appaloosa Management has been in the spotlight recently after it was revealed that the 66-year-old owner of the Carolina Panthers is investing in Chinese stocks in his latest portfolio while apparently reducing his exposure to mega-cap tech stocks whose AI-driven rally has already made him big money over the past few quarters. Tepper's bet on China comes at a time when the Chinese government is beginning to formulate further rescue measures for its devastated real estate sector and many analysts are predicting a recovery in the Chinese economy. The MSCI China Index has risen about 10% since the end of March.
The Return of David Tepper
David Tepper, who founded Appaloosa Management in 1993, made a 20% return last year with his huge investments in AI-related stocks. A quick analysis of David Tepper, who has a net worth of more than $20 billion, shows that he concentrated his investments in AI-related stocks when they were just starting out. This was not a fluke or a one-off success for the billionaire. According to Bloomberg data, Tepper has given investors an annualized return of 28% before fees. In 2022, when the market crashed due to a storm of inflation and rising interest rates, Appaloosa returned 12.5%. Tepper's intuition and command of financial markets have been strong since his late 20s and 30s, when he made huge profits at Goldman Sachs, which he joined in 1985.
Tepper rose to fame at Goldman for his portfolio's prominence during the 1987 market collapse. Alpha Masters: Unleashing the genius of the world's top hedge fundsIn the book “The Great Gatsby,” written by Maneet Ahuja, Tepper recalls:
“Before the crash, I had my entire portfolio set up for short positions, no long positions. I made a ton of money during and after the crash,” he says with a laugh. “It was pretty cool.” Unfortunately, others at the firm didn't fare so well. “I still got a raise, but it wasn't as big as I'd hoped.”
Amazon.com Inc. (NASDAQ:AMZN)
Billionaire David Tepper Stock Value Q1 2024: $690,494,640
Billionaire David Tepper holds $690 million in Amazon.com Inc (NASDAQ:AMZN) stock as of the end of the first quarter of 2024. The Amazon Web Services business has become an AI powerhouse as companies use the cloud platform to develop, deploy, and maintain AI applications.
Amazon.com Inc. (NASDAQ:AMZN) has seen a surge in hedge fund sentiment in the first quarter of 2024. A total of 302 hedge funds out of 919 funds in Insider Monkey's database currently hold Amazon.com Inc. (NASDAQ:AMZN) shares, up from 293 hedge funds in the previous quarter.
In its Q1 2024 investor letter, Vulcan Value Partners said the following about Amazon.com, Inc. (NASDAQ:AMZN):
“Amazon.com, Inc. (NASDAQ:AMZN) is a world-class, powerful company with strong secular tailwinds including e-commerce penetration, digital advertising growth, and the shift to the cloud. Amazon reported strong financial results during the quarter, with losses in its core retail business narrowing significantly. Amazon saw its cost of serving per unit drop for the first time since 2018 as its recent localization efforts continued to bear fruit.
Amazon.com Inc (NASDAQ:AMZN) Ranking Billionaire David Tepper ranks it No. 2 on his top 10 AI stocks for 2024.
Click to see more of Billionaire Tepper's AI stock picks. David Tepper's 10 best AI stocks for 2024.
If you're looking for AI stocks with as much promise as Microsoft, but whose shares trade at less than five times earnings, check out our report on the cheapest AI stocks.
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Disclosures: None. This article was originally published on Insider Monkey.
