Polen Capital, an investment management company, released its “Polen Global Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets experienced a surge in volatility in 2025 due to US tariffs, with the "Magnificent 7" falling 15% and semiconductors dropping 19%. U.S. stocks lagged, with international equities surpassing them by nearly 10% due to a weakening dollar and a significant tariff shock after the quarter's close. The Strategy returned -5.18% gross (-5.45 % net) in the quarter compared to the MSCI ACW Index’s -1.32% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Polen Global Growth Strategy highlighted stocks such as Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores that operate through North America, International, and Amazon Web Services (AWS) segments. The one-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 6.43%, and its shares gained 11.28% of their value over the last 52 weeks. On May 22, 2025, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $203.10 per share with a market capitalization of $203.10 trillion.

Polen Global Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2025 investor letter:

"Amazon.com, Inc. (NASDAQ:AMZN) fell -13% in the quarter, stemming from weaker-than expected first quarter guidance and concerns over the potential tariff-induced headwinds they may face, given that many third party sellers on their e-commerce platform are based in China. However, we think their first-party and third-party commerce platform should prove fairly resilient, aided by strength in their Amazon Web Service cloud business and its bottom-of-funnel advertising business. Amazon remains our largest position, as we expect roughly 20% earnings growth over the next five years, driven by solid organic revenue growth and continued margin expansion. It remains an incredibly well-managed business with sustainable advantages and a long growth runway."Amazon.com, Inc. (AMZN): Among Billionaire Mason Morfit’s Stock Picks with Highest Upside Potential

A customer entering an internet retail store, illustrating the convenience of online shopping.

Amazon.com, Inc. (NASDAQ:AMZN) is in first position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 339 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the fourth quarter compared to 286 in the third quarter. In Q1 2025, Amazon.com, Inc. (NASDAQ:AMZN) achieved global revenue of $155.7 billion, representing an 10% year-over-year growth excluding the impact of foreign exchange. While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

Story Continues

In another article, we covered Amazon.com, Inc. (NASDAQ:AMZN) and shared AI stocks surging on news and analyst ratings. In addition, please check out our hedge fund investor letters Q1 2025 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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