Amazon is the Most Crowded Stock for Hedge Funds. Tesla, not so Much.

Big investors have been loading up on Amazon.com stock in recent months even as shares have stagnated, trading data shows.

Amazon finished September as the most crowded North American stock among hedge funds, according to a report released Wednesday by Hazeltree, which tracks trading activity at more than 700 global funds. Microsoft and semiconductor-supply company Applied Materials took second and third spots on the podium, respectively.

That doesn't necessarily mean Amazon is a favorite stock for hedge funds, as they could be shorting the retail giant through options or other instruments, said Tim Smith, managing director of data insights at Hazeltree. Amazon has, however, been among the 10 most crowded longs among North American large-cap stocks each month this year.

Amazon is down 2.5% since the beginning of September and up 9.9% on the year.

Several other Magnificent Seven names gained popularity on Wall Street as the third quarter came to a close. Alphabet saw moderate growth in the number of funds taking long positions in September, Hazeltree said, while Meta Platforms, Microsoft, and Nvidia, experienced modest gains.

Rewards for investors have been solid, if unspectacular, by hedge-fund standards. The Roundhill Magnificent Seven exchange-traded fund is up 6.9% since the start of September, led by Meta and Microsoft.

Hedge funds don't seem to be as enthusiastic about Tesla, which has become the laggard of the group. Elon Musk's car maker saw a modest decline in funds holding long positions and a notable jump in short selling, Hazeltree said.

The number of funds in Hazeltree's data that have sold Tesla short is almost double the amount that own the stock long. Apple also has more short sellers than long investors.

Shorting Tesla has proven a ho-hum strategy in recent weeks. The stock is down 1% since the start of September. Over a longer horizon, short sellers have been able to make a killing. Shares have fallen 19% in 2026.

That said, many large investors are simply staying away from the stock altogether: Tesla hasn't been among the 10 most crowded shorts among North American large-caps in any month this year, Hazeltree found.