David Tepper Doubles Down on Semiconductor Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AMZN?
Source: Benzinga
- Semiconductor Investment Boost: David Tepper's Appaloosa Management aggressively added 1 million shares of Micron Technology (NASDAQ:MU) during the quarter, bringing its total holdings to 1.5 million shares valued at over $428 million, indicating strong confidence in the semiconductor sector's recovery.
- Tech Giants Trimmed: Despite the reductions, Alibaba remains Appaloosa's largest single holding at 10.88% of the total portfolio, down from 15.61% in the previous quarter, reflecting a cautious stance on Chinese tech stocks.
- Amazon and Nvidia Reductions: Appaloosa trimmed its stake in Amazon (NASDAQ:AMZN) by approximately 320,000 shares, a 12.8% decrease, while also reducing Nvidia (NASDAQ:NVDA) by 10.5%, liquidating 200,000 shares, indicating Tepper's strategic adjustments in response to market dynamics.
- Shifting Investment Strategy: Tepper appears to be moving “down the stack,” focusing on hardware components that drive AI rather than chip designers, showcasing a reassessment of hardware value and optimism about future growth potential.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMZN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 198.790
Low
175.00
Averages
280.01
High
325.00
Current: 198.790
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Amazon's AI Investments Amid Stock Volatility
- Stock Price Fluctuations: Amazon's stock surged about 7% to $247 per share at the start of the year but has since dropped approximately 14% over the last month, primarily due to the ongoing decline in software stocks, prompting investor sell-offs.
- Significant AI Budget Increase: Amazon plans to raise its capital expenditures to $200 billion for 2023, significantly exceeding Wall Street's expectation of $150 billion, which will decelerate free cash flow and impact short-term stock performance.
- Strong AWS Growth: Amazon Web Services (AWS) generated $35.6 billion in revenue during Q4, reflecting a 24% year-over-year growth, with a staggering $244 billion backlog indicating robust market demand and substantial future growth potential.
- Strategic Partnership Advantages: Amazon's collaboration with Anthropic is establishing a cost-efficient, vertically integrated AI ecosystem, and while initial investment returns may lag, this strategy is expected to enhance the company's competitive edge and market position in the long run.
See More
Coatue Management Makes Major Portfolio Adjustments
- Netflix Position Surge: Coatue Management dramatically increased its Netflix holdings from approximately 618,735 shares in Q3 to over 6.1 million shares in Q4, adding around 5.5 million shares, indicating strong confidence in the streaming giant's future revenue growth potential.
- Amazon Accumulation: The fund also notably raised its Amazon stake from about 8.7 million shares to approximately 9.9 million shares, an increase of around 1.2 million shares, reflecting optimism about the e-commerce leader's sustained growth prospects, which could enhance its market share.
- Tech Stock Reductions: Coatue reduced its holdings in Alphabet Inc. Class A shares from approximately 7.2 million shares to roughly 6.8 million shares, a decrease of about 400,000 shares, showcasing a cautious stance towards traditional tech stocks that may impact long-term growth expectations.
- New Investment Initiatives: The firm initiated positions in Vertiv Holdings with over 800,000 shares and Sprouts Farmers Market with approximately 601,886 shares, demonstrating a focus on emerging markets that could provide new growth avenues for future earnings.
See More
3G Capital Initiates Position in Amazon with 130K Shares
- New Position: 3G Capital acquired 130,000 shares of Amazon (AMZN) as part of its Q4 trades, indicating the fund's confidence in Amazon's growth potential and possibly providing stability amid market fluctuations.
- Reductions and Increases: The fund reduced its holdings in Analog Devices (ADI) by 90,000 shares and Broadcom (AVGO) by 65,000 shares while increasing its stake in Meta Platforms (META) to 90,000 shares, reflecting a reassessment and strategic adjustment towards tech stocks.
- Portfolio Adjustments: 3G Capital raised its stake in Carvana (CVNA) from 120,000 to 150,000 shares and MercadoLibre (MELI) from 17,500 to 25,000 shares, suggesting an optimistic outlook on these companies' growth prospects, which may drive future investment returns.
- Reduction Trends: The fund also decreased its holdings in Alphabet (GOOG) from 100,000 to 80,000 shares and BBB Foods (TBBB) from 1.6 million to 550,000 shares, reflecting a cautious stance towards these companies, likely based on risk assessments of changing market conditions.
See More
New York Times Q4 Earnings Exceed Expectations Driven by Subscriber Growth
- Earnings Beat: New York Times reported an adjusted EPS of $0.89 for Q4, surpassing analyst expectations of $0.87, indicating strong performance driven by digital subscriber growth that solidifies its market position.
- Significant Revenue Growth: The company achieved a 10.4% year-over-year revenue increase to $802.3 million in Q4, exceeding analyst estimates of $791.3 million, reflecting robust demand for advertising and digital content.
- Subscriber Growth: By the end of Q4 2025, New York Times added approximately 450,000 net digital-only subscribers, bringing the total to 12.78 million, showcasing success in attracting new users and enhancing future revenue sustainability.
- Increased Shareholder Confidence: Berkshire Hathaway acquired 5.07 million shares of New York Times in Q4, leading to a 3.3% rise in stock price during after-hours trading, demonstrating market confidence in the company's growth potential.
See More
Amazon Stock Rebounds, Ending Nine-Day Losing Streak
- Stock Rebound: Amazon (AMZN) closed at $201.15 on Tuesday, up 1.19%, marking the end of a nine-day losing streak driven by concerns over its $200 billion AI investment plan, restoring market confidence in its growth prospects.
- Surge in Trading Volume: The trading volume reached 67.9 million shares, approximately 43% above the three-month average, indicating heightened investor interest and confidence in Amazon's future developments.
- Significant AWS Contribution: Amazon Web Services (AWS) saw a 24% revenue increase in Q4, contributing $128 billion to Amazon's total $717 billion revenue last year, underscoring its strong position in the cloud services market.
- Investment Outlook Analysis: Despite the massive capital expenditure plan, investors are weighing Amazon's growth potential against AWS's profitability, reflecting trust in the company's long-term strategic direction.
See More
US Stocks Edge Up Amid Ongoing AI Concerns
- Market Volatility: The S&P 500 rose 0.10% to 6,843.22, reflecting ongoing AI-related concerns that pressured growth stocks, indicating investor uncertainty about future market conditions.
- Tech Stock Performance: Amazon ended its historic slide with a 1.19% increase, while Apple and GE Aerospace rose 3.12% and 3.61%, respectively, providing support to the Dow, highlighting investor preference for value stocks amid volatility.
- Consumer Goods Pressure: Consumer staples and packaged food stocks faced challenges as investors expressed concerns that a softening U.S. consumer could impact margins and earnings in defensive sectors, signaling caution in the market.
- Investment Strategy Shift: JPMorgan noted that select quality stocks appear mispriced post-AI rerating, suggesting investors are increasingly focusing on moats and regulatory factors while positioning for upcoming inflation and GDP releases.
See More
Amazon's AI Investments Amid Stock Volatility
- Stock Price Fluctuations: Amazon's stock surged about 7% to $247 per share at the start of the year but has since dropped approximately 14% over the last month, primarily due to the ongoing decline in software stocks, prompting investor sell-offs.
- Significant AI Budget Increase: Amazon plans to raise its capital expenditures to $200 billion for 2023, significantly exceeding Wall Street's expectation of $150 billion, which will decelerate free cash flow and impact short-term stock performance.
- Strong AWS Growth: Amazon Web Services (AWS) generated $35.6 billion in revenue during Q4, reflecting a 24% year-over-year growth, with a staggering $244 billion backlog indicating robust market demand and substantial future growth potential.
- Strategic Partnership Advantages: Amazon's collaboration with Anthropic is establishing a cost-efficient, vertically integrated AI ecosystem, and while initial investment returns may lag, this strategy is expected to enhance the company's competitive edge and market position in the long run.
See More
Coatue Management Makes Major Portfolio Adjustments
- Netflix Position Surge: Coatue Management dramatically increased its Netflix holdings from approximately 618,735 shares in Q3 to over 6.1 million shares in Q4, adding around 5.5 million shares, indicating strong confidence in the streaming giant's future revenue growth potential.
- Amazon Accumulation: The fund also notably raised its Amazon stake from about 8.7 million shares to approximately 9.9 million shares, an increase of around 1.2 million shares, reflecting optimism about the e-commerce leader's sustained growth prospects, which could enhance its market share.
- Tech Stock Reductions: Coatue reduced its holdings in Alphabet Inc. Class A shares from approximately 7.2 million shares to roughly 6.8 million shares, a decrease of about 400,000 shares, showcasing a cautious stance towards traditional tech stocks that may impact long-term growth expectations.
- New Investment Initiatives: The firm initiated positions in Vertiv Holdings with over 800,000 shares and Sprouts Farmers Market with approximately 601,886 shares, demonstrating a focus on emerging markets that could provide new growth avenues for future earnings.
See More
3G Capital Initiates Position in Amazon with 130K Shares
- New Position: 3G Capital acquired 130,000 shares of Amazon (AMZN) as part of its Q4 trades, indicating the fund's confidence in Amazon's growth potential and possibly providing stability amid market fluctuations.
- Reductions and Increases: The fund reduced its holdings in Analog Devices (ADI) by 90,000 shares and Broadcom (AVGO) by 65,000 shares while increasing its stake in Meta Platforms (META) to 90,000 shares, reflecting a reassessment and strategic adjustment towards tech stocks.
- Portfolio Adjustments: 3G Capital raised its stake in Carvana (CVNA) from 120,000 to 150,000 shares and MercadoLibre (MELI) from 17,500 to 25,000 shares, suggesting an optimistic outlook on these companies' growth prospects, which may drive future investment returns.
- Reduction Trends: The fund also decreased its holdings in Alphabet (GOOG) from 100,000 to 80,000 shares and BBB Foods (TBBB) from 1.6 million to 550,000 shares, reflecting a cautious stance towards these companies, likely based on risk assessments of changing market conditions.
See More
New York Times Q4 Earnings Exceed Expectations Driven by Subscriber Growth
- Earnings Beat: New York Times reported an adjusted EPS of $0.89 for Q4, surpassing analyst expectations of $0.87, indicating strong performance driven by digital subscriber growth that solidifies its market position.
- Significant Revenue Growth: The company achieved a 10.4% year-over-year revenue increase to $802.3 million in Q4, exceeding analyst estimates of $791.3 million, reflecting robust demand for advertising and digital content.
- Subscriber Growth: By the end of Q4 2025, New York Times added approximately 450,000 net digital-only subscribers, bringing the total to 12.78 million, showcasing success in attracting new users and enhancing future revenue sustainability.
- Increased Shareholder Confidence: Berkshire Hathaway acquired 5.07 million shares of New York Times in Q4, leading to a 3.3% rise in stock price during after-hours trading, demonstrating market confidence in the company's growth potential.
See More
Amazon Stock Rebounds, Ending Nine-Day Losing Streak
- Stock Rebound: Amazon (AMZN) closed at $201.15 on Tuesday, up 1.19%, marking the end of a nine-day losing streak driven by concerns over its $200 billion AI investment plan, restoring market confidence in its growth prospects.
- Surge in Trading Volume: The trading volume reached 67.9 million shares, approximately 43% above the three-month average, indicating heightened investor interest and confidence in Amazon's future developments.
- Significant AWS Contribution: Amazon Web Services (AWS) saw a 24% revenue increase in Q4, contributing $128 billion to Amazon's total $717 billion revenue last year, underscoring its strong position in the cloud services market.
- Investment Outlook Analysis: Despite the massive capital expenditure plan, investors are weighing Amazon's growth potential against AWS's profitability, reflecting trust in the company's long-term strategic direction.
See More
US Stocks Edge Up Amid Ongoing AI Concerns
- Market Volatility: The S&P 500 rose 0.10% to 6,843.22, reflecting ongoing AI-related concerns that pressured growth stocks, indicating investor uncertainty about future market conditions.
- Tech Stock Performance: Amazon ended its historic slide with a 1.19% increase, while Apple and GE Aerospace rose 3.12% and 3.61%, respectively, providing support to the Dow, highlighting investor preference for value stocks amid volatility.
- Consumer Goods Pressure: Consumer staples and packaged food stocks faced challenges as investors expressed concerns that a softening U.S. consumer could impact margins and earnings in defensive sectors, signaling caution in the market.
- Investment Strategy Shift: JPMorgan noted that select quality stocks appear mispriced post-AI rerating, suggesting investors are increasingly focusing on moats and regulatory factors while positioning for upcoming inflation and GDP releases.
See More
