Weitz Large Cap Equity Fund on Amazon.com, Inc.
Thesis
Amazon is one of the fund's large hyperscaler positions and remained in favor during the second quarter. The investment case rests partly on its competitive positioning as a major cloud and AI service provider. The fund believes Amazon can generate reasonable returns from the substantial capital it is committing to AI infrastructure.
“We continue to believe that all five companies are competitively well positioned and poised to earn reasonable returns on their voracious capital spending.”
Key risks
- Investors are increasingly scrutinizing whether heavy AI capital spending will generate acceptable returns.