Amazon.com, Inc. $AMZN Stake Cut by Matthew 25 Management Corp

Key Points

• Matthew 25 Management Corp cut its Amazon stake by 14.8% in the fourth quarter, selling 21,250 shares and leaving it with 122,500 shares worth about $28.3 million. Amazon still represents 8.6% of the fund’s portfolio and remains its third-largest holding.
• Amazon reported strong quarterly results, with EPS of $2.78 beating estimates by $1.15 and revenue of $181.52 billion topping forecasts. Revenue rose 16.6% year over year, and the company’s net margin and return on equity remained solid.
• Analysts remain bullish on AMZN, with several firms raising price targets and 57 analysts rating the stock a Buy. The consensus target is about $312.66, above the recent trading price around $274.

Matthew 25 Management Corp reduced its position in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 14.8% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 122,500 shares of the e-commerce giant's stock after selling 21,250 shares during the quarter. Amazon.com comprises approximately 8.6% of Matthew 25 Management Corp's investment portfolio, making the stock its 3rd biggest holding. Matthew 25 Management Corp's holdings in Amazon.com were worth $28,275,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of AMZN. Brighton Jones LLC grew its holdings in Amazon.com by 10.9% in the fourth quarter. Brighton Jones LLC now owns 4,036,091 shares of the e-commerce giant's stock worth $885,478,000 after purchasing an additional 397,007 shares during the last quarter. Revolve Wealth Partners LLC grew its holdings in Amazon.com by 4.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 25,045 shares of the e-commerce giant's stock worth $5,495,000 after purchasing an additional 986 shares during the last quarter. Bank Pictet & Cie Europe AG grew its holdings in Amazon.com by 2.8% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,016,869 shares of the e-commerce giant's stock worth $442,481,000 after purchasing an additional 54,987 shares during the last quarter. Highview Capital Management LLC DE grew its holdings in Amazon.com by 5.5% in the fourth quarter. Highview Capital Management LLC DE now owns 28,975 shares of the e-commerce giant's stock worth $6,357,000 after purchasing an additional 1,518 shares during the last quarter. Finally, Liberty Square Wealth Partners LLC purchased a new position in Amazon.com in the fourth quarter worth $2,153,000. 72.20% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Amazon.com news, VP Shelley Reynolds sold 2,363 shares of the company's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $262.38, for a total value of $620,003.94. Following the sale, the vice president directly owned 119,780 shares of the company's stock, valued at approximately $31,427,876.40. This represents a 1.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the company's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the completion of the sale, the senior vice president directly owned 41,190 shares in the company, valued at approximately $11,060,750.70. The trade was a 18.37% 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 sold 195,774 shares of company stock valued at $51,552,494 in the last 90 days. 8.90% of the stock is currently owned by insiders.

Amazon.com Price Performance

NASDAQ AMZN opened at $274.00 on Friday. Amazon.com, Inc. has a 1 year low of $196.00 and a 1 year high of $278.56. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01. The company has a market cap of $2.95 trillion, a price-to-earnings ratio of 32.78, a PEG ratio of 2.04 and a beta of 1.46. The stock's fifty day moving average price is $244.17 and its 200 day moving average price is $232.34.

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

Analysts Set New Price Targets

Several research firms have issued reports on AMZN. Benchmark lifted their price target on shares of Amazon.com from $275.00 to $370.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. BNP Paribas Exane boosted their price objective on shares of Amazon.com from $320.00 to $345.00 and gave the company an "outperform" rating in a report on Tuesday, May 5th. TD Securities raised Amazon.com to a "buy" rating in a research report on Monday, April 13th. Deutsche Bank Aktiengesellschaft upped their target price on Amazon.com from $290.00 to $315.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Finally, Oppenheimer upped their target price on Amazon.com from $275.00 to $320.00 and gave the company an "outperform" rating in a research report on Thursday, April 30th. Fifty-seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $312.66.

Amazon.com News Summary

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

• Positive Sentiment: Amazon Web Services got a major lift from news that Snowflake signed a $6 billion multiyear deal with AWS, underscoring strong demand for Amazon’s cloud infrastructure and AI-related chips. Article Title
• Positive Sentiment: Multiple analysts and market commentators remain bullish on AMZN, citing AWS acceleration, AI backlog growth, and margin expansion potential; UBS and Bank of America both reiterated constructive views and high price targets. Article Title
• Positive Sentiment: Amazon is also broadening its AI moat by making its shopping AI tools and potentially even SpaceX’s Grok models available through AWS, which could attract more enterprise customers and deepen platform usage. Article Title
• Positive Sentiment: Investor sentiment was helped by coverage arguing Amazon’s AI strategy is differentiated and that its cloud and retail ecosystem could remain a long-term winner as AI spending scales. Article Title
• Neutral Sentiment: Walmart’s expansion of 30-minute delivery adds competitive pressure in fast delivery, but it also confirms Amazon’s fulfillment model is still setting the pace in retail logistics. Article Title
• Negative Sentiment: Amazon’s local unit is facing an Australian regulator lawsuit over alleged missing warning labels on children’s backpacks with button batteries, creating a small legal and reputational headwind. Article Title
• Negative Sentiment: Some articles also pointed to heavy AI capex and insider selling, which may remind investors to watch margins and execution even as the growth narrative stays intact. Article Title

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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