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Yahoo
09-05-2025
- Business
- Yahoo
Amazon.com, Inc. (AMZN): Among Billionaire Larry Robbins' Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Larry Robbins' 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Inc. (NASDAQ:AMZN) stands against other stock picks with huge upside potential. Larry Robbins is an American hedge fund manager and philanthropist who founded Glenview Capital Management in 2000. The firm manages capital for investors across a range of private investment funds. Robbins is currently the CEO of his firm. He graduated with honors from the Jerome Fisher Program in Management and Technology at the University of Pennsylvania in 1992 and earned a BS in economics with concentrations in accounting, finance, and marketing. He also has a BS in engineering with a major in systems engineering. He became a Certified Public Accountant in Illinois in 1991. Before founding Glenview Capital, Robbins worked as a portfolio manager at Omega Advisors, which is a prominent hedge fund founded by Leon Cooperman. In 2017, Larry Robbins also began serving as chairman of the Robin Hood Foundation, which fights poverty in New York City. Through his Family Foundation, he is an active supporter of education reform both in NYC and on the national level. He also serves as Chairman of the Board of KIPP NY and is a Board Member of Zearn and Relay Graduate School of Education. Due to his sharp analytical skills and a focus on the healthcare sector, Robbins has built a reputation as one of the most influential figures in the hedge fund industry. Glenview Capital Management has 6 clients and discretionary assets under management (AUM) of $5.6 billion as reported in its Form ADV dated 4 March 2025. The last reported 13F filing for Q4 2024 included $3.95 billion in managed 13F securities and a top 10 holdings concentration of 65.22%. Earlier in September 2024, Institutional Investor reported that Glenview Capital Management was on track for its best year in 5 years. The flagship Glenview Capital Partners fund was up 3.45% in August 2024 and 17.2% through the first 8 months of the year. One of the reasons behind this performance is the hedge fund's diversification away from a historically heavy concentration in healthcare stocks. Glenview Capital Management has now expanded its investments into the tech sector and other industries. Larry Robbins believes in a straightforward investment strategy: 'There are only two things that matter in investing. What are they going to earn, and what multiple are people going to put on that. Let's not make our business any more complicated than this.' To compile the list of billionaire Larry Robbins' 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Glenview Capital from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 30 stock picks and ranked the stocks in ascending order of this upside potential. We have also added Glenview Capital's stake in each stock as well as the broader hedge fund sentiment for it. Note: All data was sourced on May 8. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A customer entering an internet retail store, illustrating the convenience of online shopping. Glenview Capital's Stake: $73.13 million Number of Hedge Fund Holders: 339 Average Upside Potential as of May 8: 26.12% Inc. (NASDAQ:AMZN) is a tech company that offers online retail shopping services. It operates through its North America, International, and AWS (Amazon Web Services) segments. AWS is positioned to capitalize on the burgeoning cloud market, where over 85% of global IT spending remains on-premises. AWS generated $29.3 billion in Q1 2025 revenue, which was an increase of 17% year-over-year increase. The rise of AI is expected to be a major catalyst here. Infrastructure modernization in the cloud is foundational for AI adoption, which is why Amazon is aggressively investing in AI capabilities within AWS. Amazon is also investing in Amazon Bedrock, which is a fully managed service providing access to a range of high-performing foundation models. These include Anthropic's Claude 3.7 Sonnet and Meta's Llama 4, the company's state-of-the-art Amazon Nova family of models. These initiatives aim to lower the cost of AI inference and empower businesses to build innovative GenAI applications. On May 5, Baird increased its price target for the stock from $215 to $220, while maintaining an Outperform rating. Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter: 'During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. In Consumer Discretionary, Inc. (NASDAQ:AMZN) reported strong third-quarter results. Revenue increased by double digits, led by growth in advertising and Al products, while the company's operating margins also hit an all-time high of 11%. The key reasons for the higher margins were that its international e-commerce operations turned profitable, and there was faster growth in its high-margin cloud-computing business.' Overall, AMZN ranks 10th on our list of billionaire Larry Robbins' stock picks with huge upside potential. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Bloomberg
01-05-2025
- Business
- Bloomberg
CVS' Aetna to Stop Offering Affordable Care Act Health Plans
CVS Health Corp. 's Aetna unit will exit the Affordable Care Act insurance market in 2026, the company said after reporting better-than-expected first-quarter earnings. The decision follows price hikes on its money-losing plans, which currently cover about 1 million Americans. The move comes after Chief Executive Officer David Joyner took the helm in October with a mandate to improve the company's insurance business, which had been struggling after Aetna sold certain plans too cheaply and the federal government dinged it for quality issues. The challenges drew the interest of Glenview Capital Management, whose founder joined the board.
Boston Globe
08-04-2025
- Business
- Boston Globe
CVS Health's CFO is leaving as pharmacy chain faces activist investor
CVS also named Amy Compton-Phillips the company's new executive vice president and chief medical officer, who will take the role on May 19. Advertisement CVS's shares rose as much as 12 percent after the market opened in New York on Tuesday, helped by a surprise boost in government payments for Medicare Advantage plans announced Monday evening. Get Rhode Island News Alerts Sign up to get breaking news and interesting stories from Rhode Island in your inbox each weekday. Enter Email Sign Up CVS has faced financial challenges in recent years, particularly in its Aetna insurance unit, which attracted the attention of activist investor Glenview Capital Management. In October, CVS chose as CEO Joyner, a longtime company veteran who quickly appointed new leadership in the insurance business. The company's fourth-quarter earnings last year impressed investors, sending the stock up the most in more than 25 years. The health-care conglomerate, which reaffirmed on Tuesday its previously issued full-year guidance for 2025, also runs a large retail pharmacy and a pharmacy benefits manager. CVS has been beset by rising medical costs industrywide in addition to facing company-specific challenges. Advertisement The insurance business suffered after underestimating medical costs and the government cut quality ratings for some plans, depressing payments, challenges CVS has been fixing. The company's pharmacy division, along with the rest of the industry, has also faced increasing financial pressure from falling payments for drugs and competition for front-of-store products from online sellers and big box retailers. Cowhey has been CFO since January 2024, and held the position on an interim basis starting in October 2023, when the previous CFO, Shawn Guertin, took a leave of absence for family health reasons.
Boston Globe
12-02-2025
- Business
- Boston Globe
CVS soars after fourth-quarter profit signals improvement
The shares rose as much as 15 percent when markets opened Wednesday in New York, their biggest intraday gain since October 1999. CVS is trying to turn around its drugstore chain and insurance business, where profit has been hit by underpricing of plans and cuts to quality ratings that help determine payments from US health programs. Chief Executive Officer David Joyner, who took the helm in October, has said that a recovery will take years. They company is 'encouraged' by recent conversations with the government about payment rates for Medicare Advantage, a private version of the US health program for older and disabled people, Joyner said on a conference call. Rates proposed by the government didn't take into account increased health-care use and costs, he said. Advertisement The company is also being pushed for change by activist investor Glenview Capital Management. Its CEO, Larry Robbins, one of four new members who have joined CVS's board, has said that the company should bring down debt. Medical Costs In the insurance unit, CVS spent 94.8 percent of premium revenue on medical care in the quarter, less than analysts expected. Investors prefer a lower number. However, CVS said in a separate filing that high use of medical services will continue to pressure the business. The company pointed in particular to high costs in its business that manages care for patients on Medicaid, the US health program for the poor. States have been cutting Medicaid rolls since the pandemic, often culling healthier patients in the program while sicker patients remain. Revenue in all major divisions — insurance, drugstores and health services — were ahead Street expectations, as was overall quarterly revenue of $97.7 billion. Advertisement Adjusted earnings for 2025 will be $5.75 to $6 a share, CVS said, while the average estimate of analysts surveyed by Bloomberg was $6. CVS called the guidance an 'appropriately achievable baseline' with 'opportunities for outperformance.' Investors had expected the 2025 profit outlook to come 'comfortably below' analyst estimates, so CVS's expectation 'looks fine,' Leerink Partners analyst Michael Cherny wrote in a note to clients.
