Amazon.com, Inc. $AMZN Holdings Trimmed by Fund 1 Investments LLC

Key Points

• Fund 1 Investments LLC cut its Amazon stake by 66% in the second quarter, selling 96,846 shares and retaining 50,000 shares worth approximately $11.9 million. Institutional investors collectively own 72.2% of Amazon’s stock.
• Amazon reported strong quarterly results, with revenue up 19.6% year over year to $200.61 billion and EPS of $5.75, well above analyst expectations. Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $321.63.
• AWS and artificial intelligence remain major growth drivers, but rising AI infrastructure spending, potential regulatory changes, labor actions and questions about AWS profitability create risks for free cash flow and future returns.

Fund 1 Investments LLC lowered its position in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 66.0% in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 50,000 shares of the e-commerce giant's stock after selling 96,846 shares during the quarter. Amazon.com accounts for 2.0% of Fund 1 Investments LLC's investment portfolio, making the stock its 19th largest holding. Fund 1 Investments LLC's holdings in Amazon.com were worth $11,917,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Trust Asset Management LLC grew its position in Amazon.com by 3.3% during the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant's stock worth $26,000 after buying an additional 3,414 shares during the period. Bard Associates Inc. acquired a new stake in shares of Amazon.com during the 2nd quarter valued at approximately $32,000. Longfellow Investment Management Co. LLC acquired a new stake in shares of Amazon.com during the 2nd quarter valued at approximately $33,000. Lifetime Wealth Management P.C. purchased a new stake in shares of Amazon.com during the 4th quarter worth approximately $45,000. Finally, Prudent Man Investment Management Inc. boosted its stake in shares of Amazon.com by 87.7% during the 4th quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant's stock worth $53,000 after acquiring an additional 107 shares in the last quarter. Hedge funds and other institutional investors own 72.20% of the company's stock.

Key Amazon.com News

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

• Positive Sentiment: AWS data-center push received support: Amazon Web Services pledged more than $1 billion over five years for communities hosting its U.S. data centers, including job training, education and infrastructure initiatives. The investment is intended to ease resistance to new facilities and help Amazon secure capacity for AI workloads. Amazon to invest $1 billion over five years in US data center communities
• Positive Sentiment: AI and AWS growth remain the main bullish catalyst: Reports highlighted AWS’s rapid expansion, a more than $1 billion Synopsys agreement supporting custom-chip development, and Anthropic’s expected long-term AWS commitments of roughly $110 billion. Amazon also launched an AI agent that audits customers’ cloud environments, potentially increasing AWS usage while improving customer cost, security and performance management. Amazon Is Both Landlord And Shareholder In Anthropic’s Giant Cloud Bet
• Positive Sentiment: Analyst confidence provided additional support: Goldman Sachs added Amazon to its conviction list, while New Street raised its price target to $385 and maintained a Buy rating. Analysts cited AWS growth, generative AI exposure and potential retail-margin improvement as reasons for longer-term upside. New Street Adjusts Price Target on Amazon.com to $385
• Neutral Sentiment: Amazon is reportedly exploring an $8 billion chip sale-and-leaseback: Moving Nvidia AI chips to an investment vehicle could make the balance sheet more asset-light and help fund capital spending, but it also underscores the scale of Amazon’s AI infrastructure costs and financing requirements. Amazon seeks to offload $8 billion of Nvidia chips
• Negative Sentiment: Investors face profitability and regulatory risks: Analysts questioned how much AWS earnings are distorted by unrealized Anthropic investment gains, while surging AI capital expenditures could pressure free cash flow. Potential tougher EU cloud rules, data-center opposition, warehouse labor actions and Prime-related settlement payments add further uncertainty. What Are Amazon Investors Paying for AWS Without Investment Gains?

Amazon.com Price Performance

AMZN stock opened at $251.52 on Monday. The company has a 50 day moving average price of $257.06 and a two-hundred day moving average price of $248.51. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03. The stock has a market capitalization of $2.71 trillion, a P/E ratio of 20.23, a PEG ratio of 1.95 and a beta of 1.45. Amazon.com, Inc. has a one year low of $196.00 and a one year high of $287.20.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.82 by $3.93. The business had revenue of $200.61 billion for the quarter, compared to analysts' expectations of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The business's revenue was up 19.6% on a year-over-year basis. During the same quarter last year, the firm earned $1.68 earnings per share. As a group, sell-side analysts expect that Amazon.com, Inc. will post 8.01 EPS for the current year.

Insider Transactions at Amazon.com

In related news, CEO Douglas Herrington sold 6,362 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $1,647,821.62. Following the transaction, the chief executive officer directly owned 476,681 shares in the company, valued at approximately $123,465,145.81. This represents a 1.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian Olsavsky sold 6,172 shares of the firm's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $260.31, for a total value of $1,606,633.32. Following the completion of the sale, the chief financial officer directly owned 109,207 shares in the company, valued at approximately $28,427,674.17. The trade was a 5.35% 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 three months, insiders sold 70,589 shares of company stock valued at $18,329,015. Corporate insiders own 8.90% of the company's stock.

Analyst Ratings Changes

Several research firms recently weighed in on AMZN. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $338.00 price objective (up from $328.00) on shares of Amazon.com in a research note on Thursday, September 3rd. Monness Crespi & Hardt boosted their target price on Amazon.com from $315.00 to $330.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Evercore set a $355.00 target price on Amazon.com and gave the company an "outperform" rating in a report on Friday, August 28th. Needham & Company LLC restated a "buy" rating and issued a $300.00 price target on shares of Amazon.com in a research report on Friday, July 31st. Finally, Phillip Securities downgraded Amazon.com from a "strong-buy" rating to a "moderate buy" rating in a research note on Monday, August 3rd. Fifty-six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $321.63.

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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