Amazon has been a long-term holding in the Fidelity Global Equities Fund, but Portfolio Manager, Amit Lodha, says they’ve recently exited their position, citing three key reasons for the change. Amit shares his views in the video below.

Key reasons for the sale:

• Amazon has signalled the need for a physical presence to expand further, which will increase capex requirements and could result in lower returns on invested capital
• The current valuation is assuming the complete success of their new strategy
• The size of the company could begin to attract the attention of regulators.

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