Amazon.com, Inc. $AMZN Holdings Decreased by Avalon Capital Management

Key Points

• Avalon Capital Management cut its Amazon stake by 9.4% in the fourth quarter, selling 5,803 shares and leaving it with 56,030 shares valued at about $12.9 million.
• Institutional and analyst sentiment remains broadly positive, with hedge funds still owning 72.2% of Amazon shares and major Wall Street firms maintaining buy/outperform ratings and higher price targets.
• Amazon’s AI and cloud investments are a major focus, including the rollout of its Graviton5 CPU and a $17.5 billion loan facility to help fund data centers and other infrastructure, though the spending raises near-term margin concerns.

Avalon Capital Management reduced its holdings in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 9.4% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 56,030 shares of the e-commerce giant's stock after selling 5,803 shares during the period. Amazon.com accounts for about 3.1% of Avalon Capital Management's investment portfolio, making the stock its 8th largest holding. Avalon Capital Management's holdings in Amazon.com were worth $12,933,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of AMZN. MilWealth Group LLC grew its stake in shares of Amazon.com by 79.0% in the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant's stock worth $41,000 after acquiring an additional 79 shares during the period. Fairway Wealth LLC grew its position in Amazon.com by 95.6% during the fourth quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant's stock valued at $51,000 after buying an additional 108 shares during the period. Bridge Generations Wealth Management LLC grew its position in Amazon.com by 2,330.0% during the third quarter. Bridge Generations Wealth Management LLC now owns 243 shares of the e-commerce giant's stock valued at $53,000 after buying an additional 233 shares during the period. Cooksen Wealth LLC grew its position in Amazon.com by 23.5% during the second quarter. Cooksen Wealth LLC now owns 247 shares of the e-commerce giant's stock valued at $54,000 after buying an additional 47 shares during the period. Finally, Strategic Wealth Advisors LLC bought a new stake in Amazon.com during the fourth quarter valued at approximately $68,000. Hedge funds and other institutional investors own 72.20% of the company's stock.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Amazon is strengthening its AI and cloud position with the rollout of a faster in-house Graviton5 CPU for AWS customers, which supports its long-term competitive edge in cloud computing and AI workloads.
• Positive Sentiment: BMO reportedly named Amazon one of its top AI picks, reinforcing bullish Wall Street sentiment around the company’s AI and AWS growth story.
• Positive Sentiment: Amazon secured a $17.5 billion delayed-draw term loan facility, giving it additional financial flexibility to keep funding data centers, AI infrastructure, and other growth investments. Reuters article on Amazon securing $17.5 billion loan facility amid AI-driven capex ramp
• Positive Sentiment: Amazon’s expanded partnership activity, including Pinterest storefront integrations and additional commerce tie-ins, could help drive product discovery and more sales through its marketplace.
• Positive Sentiment: Amazon also expanded its less-than-truckload freight service to outside businesses, which could open a new logistics revenue stream and deepen its role in supply-chain services.
• Neutral Sentiment: Several articles highlighted Amazon’s growing role in AI infrastructure, including supply-chain and fiber-related deals, which are strategically important but still more about future growth than immediate earnings impact.
• Negative Sentiment: The large loan facility and ongoing AI infrastructure buildout are also reminding investors that Amazon’s capital expenditures are rising sharply, which can pressure near-term margins and explain some of the stock’s weakness.
• Negative Sentiment: Some commentary suggests the market is increasingly focused on Amazon’s heavy spending and financing needs, creating concern that the company may be prioritizing long-term growth at the expense of near-term profitability.

Amazon.com Price Performance

Shares of NASDAQ:AMZN opened at $238.00 on Thursday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.18. The firm has a fifty day moving average price of $252.26 and a 200 day moving average price of $233.44. Amazon.com, Inc. has a fifty-two week low of $196.00 and a fifty-two week high of $278.56. The firm has a market cap of $2.56 trillion, a price-to-earnings ratio of 28.47, a P/E/G ratio of 1.83 and a beta of 1.44.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share for the quarter, topping analysts' consensus estimates of $1.63 by $1.15. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The firm had revenue of $181.52 billion during the quarter, compared to analyst estimates of $177.28 billion. During the same quarter in the prior year, the business earned $1.59 earnings per share. Amazon.com's revenue for the quarter was up 16.6% on a year-over-year basis. As a group, sell-side analysts expect that Amazon.com, Inc. will post 7.71 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Truist Financial boosted their target price on shares of Amazon.com from $310.00 to $320.00 and gave the company a "buy" rating in a research report on Friday, May 29th. DZ Bank boosted their target price on shares of Amazon.com from $295.00 to $320.00 and gave the company a "buy" rating in a research report on Monday, May 4th. Sanford C. Bernstein restated an "outperform" rating and set a $315.00 target price (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. BMO Capital Markets upped their price target on shares of Amazon.com from $310.00 to $315.00 and gave the stock an "outperform" rating in a research report on Thursday, April 23rd. Finally, Maxim Group increased their price objective on shares of Amazon.com from $290.00 to $315.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $312.52.

Insider Buying and Selling at Amazon.com

In other news, CEO Douglas J. Herrington sold 27,500 shares of the company's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $275.00, for a total transaction of $7,562,500.00. Following the sale, the chief executive officer directly owned 471,361 shares in the company, valued at approximately $129,624,275. This represents a 5.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew R. Jassy sold 31,352 shares of the company's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $275.00, for a total transaction of $8,621,800.00. Following the sale, the chief executive officer owned 2,175,766 shares in the company, valued at $598,335,650. This represents a 1.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 195,774 shares of company stock worth $51,614,434 over the last three months. 8.90% of the stock is owned by company insiders.

Amazon.com Profile

Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.

Key businesses and offerings include Amazon's online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.

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