Amazon.com (AMZN): Tsai Capital’s Highest Conviction Idea

Core Insights - Tsai Capital Corporation's Growth Equity Strategy achieved an 8.5% gain before fees and 7.6% after fees for the year ending December 31, 2025, underperforming the S&P 500 Index's 17.9% return [1] - Since inception 26 years ago, the strategy has delivered a cumulative gain of 970% before fees and 658% after fees, compared to the S&P 500 Index's total return of 639% [1] - The strategy focuses on long-term investments in exceptional companies that effectively allocate capital towards promising ideas and talent, currently holding 17 high-quality growth companies [1] Company Highlights - Amazon.com, Inc. (NASDAQ:AMZN) is highlighted as a key stock in Tsai Capital's fourth-quarter 2025 investor letter, with a market capitalization of $2.598 trillion [2] - As of January 16, 2026, Amazon's stock closed at $243.01 per share, with a one-month return of 5.28% and a 52-week gain of 3.57% [2] - Amazon has evolved from its origins in 1994 to dominate various markets, with its e-commerce segment continuing to gain market share and Amazon Web Services (AWS) being the leader in cloud computing, contributing over 50% of Amazon's operating profits [3]