Altarock Partners LP Sells 1,837,974 Shares of Amazon.com, Inc. $AMZN

Key Points

• Altarock Partners cut its Amazon stake by 24.3%, selling 1.84 million shares in the second quarter but retaining 5.73 million shares valued at approximately $1.37 billion. Amazon remains the fund’s largest holding and represents 32.2% of its portfolio.
• Amazon reported strong quarterly results, with revenue rising 19.6% year over year to $200.61 billion and EPS of $5.75, well above estimates. Analysts remain bullish, giving the stock a “Moderate Buy” consensus rating and an average price target of $322.86.
• Despite growth prospects in AWS, AI, advertising and logistics, Amazon faces concerns over roughly $220 billion in planned AI infrastructure spending, additional retail layoffs, regulatory risks and insider selling under pre-arranged trading plans.

Altarock Partners LP trimmed its position in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 24.3% in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 5,729,972 shares of the e-commerce giant's stock after selling 1,837,974 shares during the quarter. Amazon.com accounts for approximately 32.2% of Altarock Partners LP's investment portfolio, making the stock its biggest position. Altarock Partners LP owned 0.05% of Amazon.com worth $1,365,682,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of AMZN. Bank of America Corp DE purchased a new stake in Amazon.com during the 2nd quarter worth about $22,218,775,000. Bank of New York Mellon Corp acquired a new stake in Amazon.com in the 2nd quarter valued at about $16,341,405,000. Amundi boosted its stake in shares of Amazon.com by 3.9% in the 2nd quarter. Amundi now owns 63,822,242 shares of the e-commerce giant's stock valued at $15,211,393,000 after buying an additional 2,421,739 shares during the period. Invesco Ltd. boosted its stake in shares of Amazon.com by 3.3% in the 4th quarter. Invesco Ltd. now owns 59,604,857 shares of the e-commerce giant's stock valued at $13,757,993,000 after buying an additional 1,879,630 shares during the period. Finally, Legal & General Group Plc acquired a new position in shares of Amazon.com during the second quarter worth about $12,831,376,000. 72.20% of the stock is owned by institutional investors and hedge funds.

More Amazon.com News

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

• Positive Sentiment: Analysts remain broadly bullish on Amazon, citing accelerating AWS growth, expanding AI-services revenue and potential upside from advertising, logistics and other businesses. One report noted that 58 analysts cover the stock without a sell rating. 58 Analysts, Zero Sells: Amazon’s Price Target Is a Rare Consensus
• Positive Sentiment: Amazon launched three higher-priced Alexa-branded tablets running Android with Google Play access, positioning the devices against Apple and Samsung while expanding Alexa+ and AI monetization opportunities. Amazon launches first Android tablets, raising prices and incorporating Alexa
• Positive Sentiment: Amazon’s AWS pricing team is using an AI chatbot to automate complex customer-deal analysis, illustrating how the company is applying AI internally to improve productivity and potentially margins. AWS pricing team turns Excel model into an AI chatbot
• Neutral Sentiment: Amazon is adding two China-to-U.S. air-freight services, which could improve inventory replenishment and peak-season execution, although the financial impact was not disclosed. Amazon launches two new China-to-U.S. air freight options
• Negative Sentiment: Investors are concerned that planned 2026 capital spending of roughly $220 billion on AI infrastructure could push free cash flow further negative before the investments generate sufficient returns. Rising Treasury yields and oil prices are also pressuring technology valuations. Amazon stock hits rare valuation lows
• Negative Sentiment: Amazon confirmed another round of reductions affecting fewer than 1,000 employees, primarily in its Stores division. The cuts may support efficiency but also signal restructuring pressure in the core e-commerce business. Amazon makes fresh job cuts, mainly in retail division
• Negative Sentiment: Amazon is blocking external AI shopping agents such as Meta’s Muse from accessing its marketplace. Critics argue the policy could encourage startups to develop competing shopping platforms and weaken Amazon’s role in agent-driven commerce. Why Amazon is making a big AI mistake
• Negative Sentiment: An FTC lawsuit alleges Amazon overcharged advertisers by more than $20 billion, adding regulatory and potential financial risks to the company’s advertising business.

Insider Buying and Selling at Amazon.com

In other Amazon.com news, CEO Matthew S. Garman sold 14,541 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $259.06, for a total transaction of $3,766,991.46. Following the transaction, the chief executive officer owned 17,794 shares of the company's stock, valued at $4,609,713.64. This represents a 44.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas Herrington sold 6,362 shares of the firm's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $1,647,821.62. Following the completion of the sale, the chief executive officer directly owned 476,681 shares in the company, valued at approximately $123,465,145.81. The trade was a 1.32% 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. In the last ninety days, insiders have sold 71,589 shares of company stock valued at $18,580,515. 8.90% of the stock is owned by corporate insiders.

Amazon.com Stock Performance

Shares of AMZN opened at $254.06 on Friday. 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 stock has a market cap of $2.74 trillion, a P/E ratio of 20.44, a PEG ratio of 2.01 and a beta of 1.45. The company has a 50-day moving average of $259.01 and a two-hundred day moving average of $249.79. Amazon.com, Inc. has a 12-month low of $196.00 and a 12-month high of $287.20.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, beating the consensus estimate of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The business had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. During the same period in the prior year, the business earned $1.68 earnings per share. The company's quarterly revenue was up 19.6% on a year-over-year basis. As a group, research analysts predict that Amazon.com, Inc. will post 8.03 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Wells Fargo & Company reiterated an "overweight" rating and issued a $338.00 price objective (up from $328.00) on shares of Amazon.com in a report on Thursday, September 3rd. Cantor Fitzgerald restated an "overweight" rating on shares of Amazon.com in a research note on Monday. Truist Financial upped their price target on Amazon.com from $320.00 to $350.00 and gave the company a "buy" rating in a report on Friday, July 31st. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $325.00 price target (up from $315.00) on shares of Amazon.com in a research note on Friday, July 31st. Finally, Raymond James Financial reissued an "outperform" rating and set a $390.00 price objective (up from $280.00) on shares of Amazon.com in a report on Friday, July 31st. Fifty-six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $322.86.

Amazon.com Company Profile

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon's major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.

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