Mairs & Power, an investment advisor, released the third-quarter 2025 investor letter for the “Mairs & Power Balanced Fund.” A copy of the letter can be downloaded here. As we move into 2025, the market’s concentration persists, with a few dominant mega-cap stocks tied to artificial intelligence (AI) driving most of the favorable outcomes. The fund returned 6.47% in the first nine months of 2025. The fund underperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), which were up 11.35% and the Morningstar Moderate Allocation peer group, which rose 10.73%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Mairs & Power Balanced Fund highlighted stocks such as Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores. The one-month return of Amazon.com, Inc. (NASDAQ:AMZN) was -2.44%, and its shares gained 1.23% of their value over the last 52 weeks. On December 10, 2025, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $231.78 per share, with a market capitalization of $2.478 trillion.

Mairs & Power Balanced Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its third quarter 2025 investor letter:

“The Fund’s relative performance was aided by a positive contribution from the Consumer Discretionary sector which benefited both from favorable allocation and selection. The Fund initiated a new position in Amazon.com, Inc. (NASDAQ:AMZN), which is well positioned to continue capturing market share in retail distribution while also growing its market-leading cloud business. The Fund took advantage of weakness in the stock during April to start the position as tariff news and a precipitous market decline provided an attractive valuation opportunity.”

Amazon.com, Inc. (NASDAQ:AMZN) is in first position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 332 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the third quarter, which was 325 in the previous quarter. In Q3 2025, Amazon.com, Inc. (NASDAQ:AMZN) reported $180.2 billion in revenue, up 12% year-over-year, excluding the impact from foreign exchange rates. While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.