Amazon.com, Inc. $AMZN Position Boosted by Fagan Associates Inc.

Key Points

• Fagan Associates increased its Amazon stake by 3.6% in the third quarter to 110,041 shares valued at approximately $27.4 million. Institutional investors collectively own 72.2% of the stock.
• Analysts remain broadly bullish, with 57 Buy ratings and three Holds, a consensus “Moderate Buy” rating and an average price target of $322.53. Morgan Stanley raised its target to $350, citing AWS growth and AI-related opportunities.
• Amazon’s AI expansion is supported by new Trainium software and long-term power investments, but planned capital expenditures of roughly $220 billion and negative free cash flow remain key risks. Company insiders also sold $18.6 million of stock during the last quarter.

Fagan Associates Inc. boosted its holdings in Amazon.com, Inc. (NASDAQ:AMZN) by 3.6% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 110,041 shares of the e-commerce giant's stock after purchasing an additional 3,871 shares during the period. Amazon.com makes up 3.1% of Fagan Associates Inc.'s portfolio, making the stock its 7th largest position. Fagan Associates Inc.'s holdings in Amazon.com were worth $27,417,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. TOP Private Wealth LLC. bought a new stake in shares of Amazon.com in the 2nd quarter valued at about $29,000. Bard Associates Inc. purchased a new stake in Amazon.com during the 2nd quarter valued at about $32,000. Longfellow Investment Management Co. LLC purchased a new stake in Amazon.com during the 2nd quarter valued at about $33,000. Atomic Invest LLC boosted its holdings in Amazon.com by 41.2% during the 2nd quarter. Atomic Invest LLC now owns 168 shares of the e-commerce giant's stock valued at $40,000 after acquiring an additional 49 shares during the period. Finally, Lifetime Wealth Management P.C. bought a new position in Amazon.com during the 4th quarter worth approximately $45,000. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Key Amazon.com News

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

• Positive Sentiment: Morgan Stanley names Amazon a top pick: The firm raised its price target to $350 from $335 and maintained an Overweight rating, citing an “under-appreciated” AWS growth runway. Morgan Stanley now expects AWS growth of approximately 47% in 2027, alongside potential gains from Bedrock, agentic AI, advertising, robotics and automated fulfillment. Amazon stock pops after Morgan Stanley details five catalysts
• Positive Sentiment: AWS makes Trainium easier to adopt: Amazon introduced TorchNeuron, a tool designed to let developers run existing PyTorch applications on its Trainium chips with minimal code changes. The software could reduce Nvidia’s CUDA-related ecosystem advantage, improve Trainium adoption and lower customer AI-computing costs. Amazon is taking its biggest shot at Nvidia with TorchNeuron
• Positive Sentiment: Long-term power strategy supports AI expansion: Amazon agreed to fund development of a proposed 960-megawatt Indiana nuclear plant and intends to purchase its electricity. The project could provide reliable power for expanding data-center capacity, although it remains subject to feasibility work and approvals. Amazon to fund 12 small nuclear reactors in Indiana
• Neutral Sentiment: Data-center supply chain activity: 3M expanded its commercial relationship with Amazon for data-center products, reportedly involving a multibillion-dollar opportunity. The agreement highlights continued infrastructure spending but does not appear to materially change Amazon’s near-term earnings outlook. 3M expands Amazon data center partnership
• Negative Sentiment: Capital intensity remains a risk: Commentary noted Amazon’s planned roughly $220 billion in annual capital expenditures, negative free cash flow and higher long-term debt. Investors will need evidence that AI spending translates into durable AWS revenue and margin expansion. Amazon’s AI data-center spending challenges

Insiders Place Their Bets

In other news, SVP David Zapolsky sold 9,258 shares of the business's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the transaction, the senior vice president directly owned 41,190 shares of the company's stock, valued at approximately $10,699,926.30. The trade was a 18.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 1,000 shares of the business's stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $251.50, for a total value of $251,500.00. Following the transaction, the chief executive officer directly owned 474,681 shares in the company, valued at $119,382,271.50. This trade represents a 0.21% 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 quarter, insiders have sold 71,589 shares of company stock worth $18,580,515. Insiders own 8.90% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Amazon.com in a research note on Monday, August 3rd. Yorkville Ives assumed coverage on Amazon.com in a research report on Monday. They issued an "outperform" rating and a $300.00 price objective for the company. Citigroup reissued a "market outperform" rating on shares of Amazon.com in a research note on Friday, August 14th. Roth Capital reissued a "buy" rating and set a $325.00 price objective on shares of Amazon.com in a research note on Monday, August 3rd. Finally, Sanford C. Bernstein restated an "outperform" rating and issued a $320.00 target price (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Fifty-seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $322.53.

Amazon.com Stock Up 5.0%

NASDAQ AMZN opened at $262.45 on Tuesday. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. The stock has a market capitalization of $2.83 trillion, a PE ratio of 21.11, a PEG ratio of 1.93 and a beta of 1.45. Amazon.com, Inc. has a 1 year low of $196.00 and a 1 year high of $287.20. The business's 50-day moving average is $256.44 and its 200 day moving average is $252.31.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.82 by $3.93. The company had revenue of $200.61 billion for the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%. Amazon.com's revenue was up 19.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.68 EPS. Sell-side analysts forecast that Amazon.com, Inc. will post 8.02 earnings per share for the current year.

Amazon.com 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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