Forget Apple: Billionaires are buying these ‘Magnificent Seven’ stocks instead

With a market capitalization of more than $3.3 trillion, Apple is the largest public company in the world.

However, it is time for investors to forget it. Well, not literally — just figuratively.

That’s because while billionaires like Warren Buffett have been selling shares of Apple, other famous billionaires have been stocking up on other stocks: Amazon (AMZN 2.77%).

Here’s what’s happening and what it means for investors.

Image source: Getty Images.

Billionaires buy Amazon

Every three months, major investment managers, hedge funds, and people inside the company are obliged to file Forms 13F with the Securities and Exchange Commission (SEC). These forms reveal which stocks are ownedthus giving the public a peek behind the curtain to see which prominent billionaire stocks buy and sell.

Last month, the latest 13F filings were released, with data for the three months ended June 30, 2024. And it revealed that several well-known billionaires are adding to their positions. in Amazon.

For example, Bridgewater Associates, a hedge fund run by billionaire Ray Dalio, bought more than 1.6 million shares of Amazon. That doubled the fund’s total holdings in Amazon to about 2.65 million shares, worth about $500 million.

In addition, Citadel Advisors, the hedge fund run by billionaire Ken Griffin, increased its holdings in Amazon by about 1.1 million shares. It now controls about 7.7 million shares, valued at nearly $1.5 billion.

Why billionaires are buying Amazon

All of these purchases beg the question, “Why are billionaires racing to buy Amazon stock?”

First, let’s remember that 13F disclosures are not a perfect indication of how billionaires indeed think about it. First, they are a snapshot. Funds may have already reduced or sold positions in the stock prior to 13Fs even made public.

Second, the funds they are just forced to disclose their long positions, no their short positions. Therefore, it is difficult to know the true intentions of a fund manager. It’s them indeed bullish on a particular stock, or is their great the new position just a hedge? There is no way to i know for sure

However, assuming Amazon’s positions are bullish bets, what are the reasons to be bullish on Amazon right now?

I can think of more than a few. But let’s focus on the company’s impressive growth.

Despite already generating over $500 billion in annual sales, Amazon continues to grow its sales at a breakneck pace. In its most recent quarter (the three months ended June 30, 2024), the company reported a 10% increase in revenue.

At this rate, the company could add nearly $50 billion to its total sales over the next 12 months. For context, this is the same amount of annual sales generated by NIKEa titan in the sportswear industry and an iconic American company for more than four decades. In other words, Amazon’s revenue is like this great and growing like that rapid, that just growing it amounts to adding a company like Nike — every year.

Is Amazon still a buy now?

Amazon remains a wonderful company. It has both the world’s largest e-commerce business and the largest cloud services business (Amazon Web Services). In addition, it continues to innovate in new and exciting areas such as robotics and artificial intelligence (AI).

To summarize, it can be hard to really understand what billionaires are thinking (despite what their 13F filings reveal). However, Amazon stock now remains a buy due to its excellent fundamentals and solid outlook going forward.