Amazon.com, Inc. $AMZN Stock Bought by Whalen Wealth Management Inc.

Key Points

• Whalen Wealth Management increased its Amazon stake by 7.4% in the third quarter to 29,165 shares valued at $7.27 million, making Amazon its third-largest holding. Institutional investors and hedge funds own 72.2% of Amazon’s stock.
• Amazon’s outlook is supported by strong AWS and AI demand, rising cash flow, and potential acquisition of AI startup Decart, but planned capital spending above $220 billion and increasing infrastructure costs are raising concerns about returns and free cash flow.
• Wall Street remains broadly positive, with 56 analysts rating Amazon a Buy and three a Hold; the consensus price target is $322.53 versus an opening price of $258.58. Investors are awaiting quarterly results for evidence that AWS, advertising, and revenue growth can offset AI-related spending.

Whalen Wealth Management Inc. raised its holdings in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 7.4% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 29,165 shares of the e-commerce giant's stock after buying an additional 2,003 shares during the quarter. Amazon.com comprises about 3.2% of Whalen Wealth Management Inc.'s portfolio, making the stock its 3rd biggest holding. Whalen Wealth Management Inc.'s holdings in Amazon.com were worth $7,266,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of AMZN. Silvant Capital Management LLC purchased a new stake in Amazon.com in the 2nd quarter valued at $60,065,000. Public Employees Retirement System of Ohio acquired a new stake in shares of Amazon.com in the 2nd quarter worth $909,868,000. Northstar Financial Companies Inc. acquired a new stake in shares of Amazon.com in the 2nd quarter worth $3,376,000. Gryphon Financial Partners LLC raised its holdings in shares of Amazon.com by 7.5% during the 1st quarter. Gryphon Financial Partners LLC now owns 73,085 shares of the e-commerce giant's stock worth $15,221,000 after acquiring an additional 5,125 shares during the period. Finally, First Citizens Bank & Trust Co. raised its holdings in shares of Amazon.com by 1.7% during the 1st quarter. First Citizens Bank & Trust Co. now owns 303,862 shares of the e-commerce giant's stock worth $63,285,000 after acquiring an additional 5,104 shares during the period. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Amazon is reportedly in advanced discussions to acquire AI startup Decart for approximately $7 billion. Decart’s software helps developers switch workloads among different AI chips, potentially strengthening AWS, Amazon’s custom-chip strategy and its broader AI infrastructure offering. The deal remains unfinalized, but investors view it as a way to acquire specialized technology and talent. Amazon weighs Decart deal
• Positive Sentiment: A bullish fundamental case remains intact: AWS growth is reportedly above 35%, AI-related demand is supporting a cloud backlog approaching $500 billion, and operating cash flow has risen 33% to $161.4 billion. Analysts at Erste Group also raised their fiscal 2027 EPS forecast to $10.71 from $10.54. Amazon free cash flow outlook
• Neutral Sentiment: Investors are awaiting Q3 results later this month for evidence that AWS demand, advertising and revenue growth can offset the near-term impact of AI infrastructure spending. Analysts generally remain positive, although Cantor Fitzgerald recently reduced its price target to $310 from $320 while retaining an Overweight rating. Amazon Q3 earnings preview
• Negative Sentiment: Amazon’s planned capital spending could exceed $220 billion this year. Depreciation, energy costs and rapidly aging AI hardware are pressuring free cash flow, raising concerns that AWS growth and its large backlog may take time to produce adequate returns. The potential Decart purchase also adds to concerns about valuation and capital discipline.
• Negative Sentiment: The UK government is expected to target online marketplaces, including Amazon, in a tax crackdown. New fees or compliance requirements could increase costs for Amazon and third-party sellers. UK online marketplace tax crackdown
• Negative Sentiment: Apple’s new HomeView smart display, cameras, doorbell and smart lock expand competition with Amazon’s Echo and Ring businesses, potentially increasing pressure on Amazon’s consumer-device margins and market share. Apple challenges Amazon in smart home

Amazon.com Price Performance

NASDAQ:AMZN opened at $258.58 on Wednesday. Amazon.com, Inc. has a 52 week low of $196.00 and a 52 week high of $287.20. The stock's fifty day moving average is $257.96 and its two-hundred day moving average is $250.86. The company has a market capitalization of $2.79 trillion, a P/E ratio of 20.80, a P/E/G ratio of 2.01 and a beta of 1.45. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, topping analysts' consensus estimates of $1.82 by $3.93. The business had revenue of $200.61 billion during 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 company's revenue was up 19.6% compared to the same quarter last year. During the same period in the prior year, the business posted $1.68 EPS. Equities analysts expect that Amazon.com, Inc. will post 8.03 EPS for the current year.

Insider Transactions at Amazon.com

In other Amazon.com news, CEO Douglas Herrington sold 1,000 shares of the company's stock in a transaction dated 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 owned 474,681 shares of the company's stock, valued at $119,382,271.50. This represents a 0.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 14,541 shares of the company's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.06, for a total transaction of $3,766,991.46. Following the completion of the transaction, the chief executive officer directly owned 17,794 shares in the company, valued at $4,609,713.64. The trade was a 44.97% 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 71,589 shares of company stock worth $18,580,515 in the last 90 days. Insiders own 8.90% of the company's stock.

Wall Street Analyst Weigh In

AMZN has been the topic of several recent research reports. Cantor Fitzgerald lowered their price target on shares of Amazon.com from $320.00 to $310.00 and set an "overweight" rating on the stock in a research report on Monday. Zacks Research lowered shares of Amazon.com from a "strong-buy" rating to a "hold" rating in a report on Monday, September 14th. Sanford C. Bernstein restated an "outperform" rating and set a $320.00 price objective (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Benchmark lifted their target price on shares of Amazon.com from $370.00 to $400.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Finally, Pivotal Research reaffirmed 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. Fifty-six 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 data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $322.53.

About Amazon.com

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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