1,032,200 Shares in Amazon.com, Inc. $AMZN Purchased by Route One Investment Company L.P.

Key Points

• Route One Investment Company purchased 1,032,200 Amazon shares worth approximately $246 million in the second quarter, making Amazon its second-largest holding at 9.9% of the portfolio.
• Amazon reported strong quarterly results, with $5.75 in earnings per share and $200.61 billion in revenue, exceeding analyst estimates; revenue increased 19.6% year over year.
• Analysts remain broadly bullish, with 56 Buy ratings, three Holds, and a consensus price target of $321.19, although rising delivery and labor costs, macro pressure, and AI-related strategic risks could weigh on the stock.

Route One Investment Company L.P. bought a new position in Amazon.com, Inc. (NASDAQ:AMZN) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 1,032,200 shares of the e-commerce giant's stock, valued at approximately $246,015,000. Amazon.com accounts for approximately 9.9% of Route One Investment Company L.P.'s investment portfolio, making the stock its 2nd biggest holding.

A number of other hedge funds have also added to or reduced their stakes in the stock. Red Crane Wealth Management LLC boosted its position in shares of Amazon.com by 2.3% in the 1st quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant's stock worth $346,000 after purchasing an additional 38 shares in the last quarter. Robinson Smith Wealth Advisors LLC increased its position in Amazon.com by 0.7% during the 1st quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant's stock valued at $1,147,000 after buying an additional 40 shares in the last quarter. Sfam LLC increased its position in Amazon.com by 3.4% during the 1st quarter. Sfam LLC now owns 1,224 shares of the e-commerce giant's stock valued at $255,000 after buying an additional 40 shares in the last quarter. Measured Risk Portfolios Inc. raised its stake in Amazon.com by 3.4% during the first quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant's stock valued at $251,000 after buying an additional 40 shares during the last quarter. Finally, CoreFirst Bank & Trust raised its stake in Amazon.com by 1.1% during the first quarter. CoreFirst Bank & Trust now owns 3,620 shares of the e-commerce giant's stock valued at $754,000 after buying an additional 40 shares during the last quarter. Hedge funds and other institutional investors own 72.20% of the company's stock.

Amazon.com Trading Down 2.2%

Shares of AMZN stock opened at $249.27 on Thursday. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. Amazon.com, Inc. has a 12-month low of $196.00 and a 12-month high of $287.20. The stock has a market capitalization of $2.69 trillion, a P/E ratio of 20.05, a P/E/G ratio of 1.98 and a beta of 1.44. The firm's 50 day moving average is $256.35 and its 200 day moving average is $246.69.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating analysts' consensus estimates of $1.82 by $3.93. The business had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company's quarterly revenue was up 19.6% compared to the same quarter last year. During the same period in the previous year, the business earned $1.68 EPS. Research analysts expect that Amazon.com, Inc. will post 8.01 earnings per share for the current year.

Key Amazon.com News

Here are the key news stories impacting Amazon.com this week:

• Positive Sentiment: AI and cloud growth remain major potential catalysts. Amazon Web Services reportedly has a $496 billion backlog and a cloud operating margin near 39%, while the company launched agentic AI tools to automate listings, inventory management and other tasks for third-party sellers. These developments reinforce the investment case that AWS and AI can drive long-term earnings growth. Amazon rolls out new agentic AI for third-party sellers
• Positive Sentiment: Amazon is expanding higher-value advertising and commerce services. A deeper Best Buy Fire TV agreement will use Amazon Ads technology across Insignia televisions, potentially increasing connected-TV advertising revenue. Amazon also expanded its U.K. partnership with Affirm and its pickup network to nearly 30,000 locations, supporting customer convenience and transaction growth. Best Buy, Amazon Deepen Fire TV Alliance
• Neutral Sentiment: Anthropic’s potential $2 trillion IPO could benefit Amazon. Amazon is an Anthropic backer and could gain from the value of its investment and increased demand for AWS infrastructure, although the timing, valuation and eventual financial benefit remain uncertain. Alphabet vs. Amazon: Which Anthropic Backer Will Benefit More?
• Negative Sentiment: Amazon’s dispute with Meta over the Muse shopping agent creates strategic risk. Amazon blocked Meta’s rapidly adopted AI agent from accessing its marketplace, protecting control over customer data and checkout but potentially allowing rivals such as Shopify to capture agent-driven commerce. The standoff also raises questions about future rules for automated shopping. Meta's standoff with Amazon over Muse
• Negative Sentiment: Rising labor and delivery spending may weigh on margins. Amazon plans to invest $1.9 billion in its Delivery Service Partner program and is rehiring former employees for AI and cloud roles. Higher wages and staffing costs could pressure near-term profitability even if they support capacity and growth. Amazon puts another $1.9 billion into its delivery network
• Negative Sentiment: Sustainability execution is an investor concern. Amazon’s chief sustainability officer said the company does not yet know how it will achieve its 2040 net-zero carbon target, raising reputational and regulatory risks. Amazon's net-zero carbon challenge
• Negative Sentiment: Macro conditions amplified the selling pressure. Amazon was among the large technology stocks weighing on a weaker market as Treasury yields and oil prices rose, increasing valuation pressure on growth-oriented companies.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the company. Rosenblatt Securities assumed coverage on Amazon.com in a report on Thursday, August 20th. They set a "buy" rating and a $335.00 price target for the company. Robert W. Baird set a $310.00 price target on shares of Amazon.com and gave the stock an "outperform" rating in a research note on Friday, July 31st. Royal Bank Of Canada increased their price objective on shares of Amazon.com from $320.00 to $330.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. Benchmark raised their price objective on shares of Amazon.com from $370.00 to $400.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Finally, KeyCorp raised their price target on shares of Amazon.com from $335.00 to $350.00 and gave the company an "overweight" rating in a research report on Friday, July 31st. Fifty-six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $321.19.

Insider Activity

In other news, CEO Douglas Herrington sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $254.77, for a total value of $254,770.00. Following the transaction, the chief executive officer owned 475,681 shares in the company, valued at $121,189,248.37. This represents a 0.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Jassy sold 20,000 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the completion of the transaction, the chief executive officer directly owned 2,235,766 shares in the company, valued at approximately $579,085,751.66. The trade was a 0.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 71,589 shares of company stock worth $18,568,785. Company insiders own 8.90% of the company's stock.

Amazon.com Company Profile

Amazon.com, Inc is a global technology and e-commerce company that operates online marketplaces and provides a broad range of consumer products and services. Its retail business sells merchandise directly to customers and enables third-party sellers to offer products through Amazon's websites and applications. The company also operates physical stores and provides services such as digital content, subscriptions, and consumer devices, including Kindle and Echo products.

Amazon Web Services (AWS) provides cloud computing, storage, database, analytics, artificial intelligence, machine learning, and other technology services to businesses, governments, and organizations.

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