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."

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.