Amazon.com, Inc. $AMZN Shares Bought by BAM Wealth Management LLC

Key Points

• BAM Wealth Management increased its Amazon stake by 37.9% in the second quarter, adding 2,742 shares to own 9,975 shares valued at approximately $2.38 million. Institutional investors collectively own 72.2% of Amazon.
• Amazon reported quarterly EPS of $5.75, sharply exceeding the $1.82 analyst consensus, while revenue rose 19.6% year over year to $200.61 billion. Analysts remain bullish, with a “Moderate Buy” consensus and an average price target of $321.63.
• AWS and artificial intelligence remain the primary growth catalysts, but investors face risks from heavy AI-related capital spending, potential pressure on free cash flow, regulatory scrutiny and data-center opposition. Amazon executives also sold shares through pre-arranged trading plans.

BAM Wealth Management LLC lifted its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 37.9% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 9,975 shares of the e-commerce giant's stock after acquiring an additional 2,742 shares during the quarter. Amazon.com comprises about 1.5% of BAM Wealth Management LLC's investment portfolio, making the stock its 16th biggest holding. BAM Wealth Management LLC's holdings in Amazon.com were worth $2,377,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in AMZN. Bard Associates Inc. acquired a new position in shares of Amazon.com during the 2nd quarter valued at $32,000. Longfellow Investment Management Co. LLC acquired a new stake in shares of Amazon.com in the second quarter valued at $33,000. Lifetime Wealth Management P.C. bought a new position in Amazon.com during the fourth quarter valued at about $45,000. Prudent Man Investment Management Inc. boosted its stake in Amazon.com by 87.7% during the fourth quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant's stock valued at $53,000 after buying an additional 107 shares in the last quarter. Finally, Strategic Wealth Advisors LLC acquired a new position in Amazon.com during the second quarter worth about $68,000. Institutional investors own 72.20% of the company's stock.

Amazon.com Trading Up 1.3%

NASDAQ AMZN opened at $251.52 on Friday. Amazon.com, Inc. has a twelve month low of $196.00 and a twelve month high of $287.20. 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 cap of $2.71 trillion, a price-to-earnings ratio of 20.23, a PEG ratio of 1.95 and a beta of 1.45. The firm's 50 day moving average price is $257.06 and its two-hundred day moving average price is $248.25.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its 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 during the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The company's revenue for the quarter was up 19.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.68 earnings per share. Equities analysts anticipate that Amazon.com, Inc. will post 8.01 EPS for the current year.

Analyst Ratings Changes

AMZN has been the topic of several research reports. Sanford C. Bernstein reiterated an "outperform" rating and issued a $320.00 price target (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Wedbush lifted their price objective on shares of Amazon.com from $293.00 to $310.00 and gave the stock an "outperform" rating in a research note on Friday, July 31st. Piper Sandler reiterated an "overweight" rating and issued a $320.00 target price (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Pivotal Research reissued a "buy" rating and set a $333.00 target price (up from $320.00) on shares of Amazon.com in a research note on Friday, July 31st. Finally, Roth Capital restated a "buy" rating and set a $325.00 target price on shares of Amazon.com in a report on Monday, August 3rd. Fifty-six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $321.63.

Amazon.com News Summary

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?

Insider Activity

In other Amazon.com news, CEO Andrew R. Jassy sold 20,000 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 transaction of $5,180,200.00. Following the completion of the sale, the chief executive officer directly owned 2,235,766 shares in the company, valued at approximately $579,085,751.66. This trade represents a 0.89% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 6,362 shares of Amazon.com stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total value 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 trade represents a 1.32% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 70,589 shares of company stock valued at $18,329,015 in the last ninety days. Corporate insiders own 8.90% of the company's stock.

Amazon.com 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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