What Makes Amazon.com (AMZN) a Lucrative Business?

Core Insights - Mairs & Power Balanced Fund reported a 2.66% return in the first half of 2025, underperforming benchmark indexes which rose 5.43% and 5.67% respectively [1] - The fund's performance was impacted by external factors such as tariff uncertainty, Middle East conflicts, and rising national debt, although it rebounded 25% by the end of the quarter [1] Fund Performance - The fund's return of 2.66% in H1 2025 was lower than the composite benchmark indexes [1] - The S&P 500 Total Return Index increased by 5.43%, while the Bloomberg U.S. Government/Credit Bond Index rose by 5.43% [1] Amazon.com, Inc. Insights - Amazon.com, Inc. (NASDAQ:AMZN) was highlighted as a key stock in the fund's portfolio, with a one-month return of -3.67% and a 14.64% increase over the past 52 weeks [2] - As of September 23, 2025, Amazon's stock closed at $220.71, with a market capitalization of $2.354 trillion [2] Investment Positioning - The fund initiated a new position in Amazon during Q2 2025, capitalizing on stock weakness due to tariff news and market decline [3] - Amazon is viewed as well-positioned to capture market share in retail and grow its cloud business [3] Hedge Fund Interest - Amazon.com, Inc. was the most popular stock among hedge funds, with 335 portfolios holding the stock at the end of Q2 2025, up from 328 in the previous quarter [4] - The company achieved global revenue of $167.7 billion in Q2 2025, reflecting a 12% year-over-year growth excluding foreign exchange impacts [4]