Amazon.com, Inc. $AMZN Stock: GEM Asset Management LLC Cuts Holdings

Key Points

• GEM Asset Management cut its Amazon holdings by 31% in the third quarter, selling 2,513 shares and retaining 5,598 shares valued at approximately $1.4 million. Institutional investors collectively own 72.2% of Amazon’s stock.
• Analyst sentiment remains favorable, with 57 Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $322.53. Morgan Stanley also named Amazon a top pick, citing AWS growth and AI-related opportunities.
• Amazon’s AI expansion faces a trade-off between growth potential and financial risk: Trainium software and planned power infrastructure could support AWS, while roughly $220 billion in annual capital spending and negative free cash flow remain concerns.

GEM Asset Management LLC cut its holdings in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 31.0% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 5,598 shares of the e-commerce giant's stock after selling 2,513 shares during the period. GEM Asset Management LLC's holdings in Amazon.com were worth $1,395,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors also recently modified their holdings of the company. State Street Corp grew its holdings in Amazon.com by 5.5% during the 2nd quarter. State Street Corp now owns 411,848,346 shares of the e-commerce giant's stock worth $95,504,904,000 after acquiring an additional 21,398,025 shares during the period. Bank of America Corp DE bought a new stake in shares of Amazon.com during the 2nd quarter valued at $22,218,775,000. Bank of New York Mellon Corp bought a new stake in shares of Amazon.com during the 2nd quarter valued at $16,341,405,000. Amundi raised its position in shares of Amazon.com by 3.9% during the 2nd quarter. Amundi now owns 63,822,242 shares of the e-commerce giant's stock valued at $15,211,393,000 after acquiring an additional 2,421,739 shares during the last quarter. Finally, Legal & General Group Plc acquired a new position in shares of Amazon.com in the 2nd quarter valued at $12,831,376,000. Institutional investors and hedge funds own 72.20% of the company's stock.

Key Headlines Impacting Amazon.com

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

Amazon.com Price Performance

AMZN opened at $262.45 on Tuesday. 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, Inc. has a 12 month low of $196.00 and a 12 month high of $287.20. The company has a fifty day simple moving average of $256.44 and a 200 day simple moving average of $252.31. The stock has a market cap of $2.83 trillion, a P/E ratio of 21.11, a P/E/G ratio of 1.93 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 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 the consensus estimate of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%. The firm's revenue was up 19.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.68 EPS. On average, research analysts expect that Amazon.com, Inc. will post 8.02 EPS for the current year.

Insider Buying and Selling at Amazon.com

In other news, CEO Andrew Jassy sold 20,000 shares of Amazon.com 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 transaction, the chief executive officer owned 2,235,766 shares in the company, valued at $579,085,751.66. The trade was a 0.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at 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 business's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $260.31, for a total value of $1,606,633.32. Following the completion of the transaction, the chief financial officer owned 109,207 shares of the company's stock, valued at $28,427,674.17. This represents a 5.35% 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 have sold a total of 71,589 shares of company stock worth $18,580,515 over the last three months. Company insiders own 8.90% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Needham & Company LLC reaffirmed a "buy" rating and set a $300.00 price objective on shares of Amazon.com in a research note on Friday, July 31st. Susquehanna restated a "positive" rating on shares of Amazon.com in a report on Tuesday, October 6th. DA Davidson restated a "neutral" rating and set a $250.00 target price on shares of Amazon.com in a report on Friday, July 31st. Mizuho set a $330.00 target price on Amazon.com and gave the stock an "outperform" rating in a research report on Friday, July 31st. Finally, Tigress Financial reaffirmed a "buy" rating and issued a $385.00 price target (up from $315.00) on shares of Amazon.com in a research note on Tuesday, October 6th. Fifty-seven 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 company has a consensus rating of "Moderate Buy" and an average target price of $322.53.

Amazon.com Company 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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