5,339 Amazon.com, Inc. $AMZN Shares Sold by Commonwealth Financial Services LLC

Key Points

• Commonwealth Financial Services reduced its Amazon stake by 21.1% in the third quarter, selling 5,339 shares and retaining 19,981 shares valued at approximately $4.98 million. Institutional investors collectively own 72.2% of Amazon’s stock.
• Amazon missed third-quarter earnings and revenue expectations, reporting EPS of $1.89 versus $1.97 expected and revenue of $201.94 billion versus $202.22 billion anticipated. The stock was down 1.4%, while analysts maintained a broadly positive “Moderate Buy” consensus despite several price-target cuts.
• AWS growth remains a major strength, but heavy AI investment is pressuring finances. AWS revenue rose 39% year over year, while Amazon’s large capital expenditures and declining free cash flow have heightened investor concerns about leverage and the timing of returns on AI infrastructure spending.

Commonwealth Financial Services LLC lowered its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 21.1% in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 19,981 shares of the e-commerce giant's stock after selling 5,339 shares during the quarter. Amazon.com makes up approximately 0.9% of Commonwealth Financial Services LLC's portfolio, making the stock its 22nd largest holding. Commonwealth Financial Services LLC's holdings in Amazon.com were worth $4,978,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in AMZN. Islay Capital Management LLC raised its position in Amazon.com by 3.5% in the third quarter. Islay Capital Management LLC now owns 15,294 shares of the e-commerce giant's stock worth $3,810,000 after acquiring an additional 517 shares during the period. Flagship Capital Management Inc. boosted its stake in Amazon.com by 9.2% in the third quarter. Flagship Capital Management Inc. now owns 11,055 shares of the e-commerce giant's stock valued at $2,754,000 after acquiring an additional 930 shares during the last quarter. Ballast Inc. grew its position in shares of Amazon.com by 2.3% during the 3rd quarter. Ballast Inc. now owns 23,752 shares of the e-commerce giant's stock valued at $5,918,000 after acquiring an additional 532 shares during the period. Boyd Wealth Management LLC grew its position in shares of Amazon.com by 72.4% during the 3rd quarter. Boyd Wealth Management LLC now owns 3,942 shares of the e-commerce giant's stock valued at $982,000 after acquiring an additional 1,656 shares during the period. Finally, Lakeside Advisors INC. increased its stake in shares of Amazon.com by 4.7% during the 3rd quarter. Lakeside Advisors INC. now owns 2,303 shares of the e-commerce giant's stock worth $574,000 after purchasing an additional 103 shares during the last quarter. Hedge funds and other institutional investors own 72.20% of the company's stock.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: AWS growth accelerated significantly. Amazon Web Services revenue rose 39% to approximately $46 billion, its fastest growth in nearly five years. Management said AWS could grow more than 40% annually in 2027 and 2028, supported by AI demand, a large backlog and rising cloud workloads. Analysts including JPMorgan, Canaccord, Monness and RBC maintained bullish ratings or targets, viewing AWS as a potential long-term, trillion-dollar business. AWS growth hits 39 percent
• Positive Sentiment: Amazon continues expanding its AI and adjacent businesses. The company plans to sell its Trainium AI chips externally by late 2027, while Amazon Pharmacy users increased more than 60% year over year and Prime Video reportedly reached profitability. Management also highlighted longer-term opportunities in retail automation, satellite internet and AI infrastructure. Amazon Trainium AI chips
• Neutral Sentiment: Analyst sentiment remains broadly constructive, but targets were trimmed. Several firms reaffirmed Buy or Outperform ratings, with targets generally well above the current trading level. However, Wells Fargo, Morgan Stanley, Wedbush, Scotiabank, Cantor Fitzgerald and others lowered targets, signaling reduced near-term confidence after the earnings release. Amazon price target changes
• Negative Sentiment: Amazon missed both major Q3 estimates. Earnings per share came in at $1.89 versus roughly $1.97–$2.01 expected, while revenue was $201.94 billion compared with about $202.2 billion anticipated. Fourth-quarter revenue guidance was also viewed as soft, raising concerns about holiday-season retail demand. Amazon fourth-quarter guidance
• Negative Sentiment: AI investment is pressuring cash flow and leverage. Amazon spent about $77 billion on property and equipment in Q3 and continues targeting approximately $220 billion in 2026 capital expenditures. Trailing free cash flow fell to a $42.4 billion deficit, while long-term debt increased substantially. Investors are questioning when the spending will generate adequate returns, overshadowing AWS’s strong growth. Amazon AI spending concerns
• Negative Sentiment: Broader technology-sector weakness amplified the selling. Amazon’s report contributed to a wider Nasdaq decline as investors reconsidered whether massive AI infrastructure spending across Big Tech can produce timely profits. Concerns about AI-related debt, cash burn and valuation affected sentiment beyond Amazon itself. Nasdaq and AI spending concerns

Amazon.com Stock Down 1.4%

Amazon.com stock opened at $240.35 on Friday. Amazon.com, Inc. has a 1-year low of $196.00 and a 1-year high of $287.20. The firm has a market capitalization of $2.59 trillion, a price-to-earnings ratio of 19.43, a P/E/G ratio of 1.87 and a beta of 1.45. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The firm has a 50 day simple moving average of $254.28 and a 200 day simple moving average of $243.09.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its earnings results on Thursday, October 29th. The e-commerce giant reported $1.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.97 by ($0.08). The company had revenue of $201.94 billion for the quarter, compared to analysts' expectations of $202.22 billion. Amazon.com had a return on equity of 16.94% and a net margin of 16.90%. The company's revenue was up 12.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.95 EPS. On average, analysts predict that Amazon.com, Inc. will post 8.00 earnings per share for the current year.

Analyst Upgrades and Downgrades

AMZN has been the topic of a number of research reports. Phillip Securities cut shares of Amazon.com from a "strong-buy" rating to a "moderate buy" rating in a report on Monday, August 3rd. Oppenheimer reissued an "outperform" rating on shares of Amazon.com in a report on Friday, July 31st. Raymond James Financial reissued an "outperform" rating and issued a $250.00 target price on shares of Amazon.com in a research report on Friday. Roth Capital restated a "buy" rating and issued a $325.00 target price on shares of Amazon.com in a research note on Monday, August 3rd. Finally, Susquehanna reaffirmed a "positive" rating on shares of Amazon.com in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $320.86.

Insider Buying and Selling at Amazon.com

In other Amazon.com news, CFO Brian Olsavsky sold 6,172 shares of Amazon.com stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $260.31, for a total transaction of $1,606,633.32. Following the completion of the transaction, the chief financial officer owned 109,207 shares of the company's stock, valued at $28,427,674.17. The trade was a 5.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 14,541 shares of the company's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.06, for a total value of $3,766,991.46. Following the sale, the chief executive officer owned 17,794 shares in the company, valued at approximately $4,609,713.64. This represents a 44.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 $18,580,515. 8.90% of the stock is owned by corporate insiders.

Amazon.com Company Profile

Amazon.com, Inc is a global technology and e-commerce company founded by Jeff Bezos in 1994. Originally launched as an online bookstore, the company has expanded into a broad digital marketplace offering consumer products across numerous categories, including electronics, household goods, apparel, groceries and other merchandise. Amazon also sells products under its own brands and provides logistics, fulfillment and delivery services that support its retail operations and third-party sellers.

The company's principal businesses include online and physical retail, Amazon Web Services (AWS), digital advertising, subscription services and consumer technology.

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