Amazon.com, Inc. $AMZN Stock: Hyperion Asset Management Ltd Trims Holdings

Key Points

• Hyperion Asset Management reduced its Amazon stake by 19.7% in the third quarter, selling 242,400 shares and retaining 985,145 shares valued at approximately $245.4 million. Amazon remains about 6.7% of Hyperion’s portfolio.
• Amazon’s third-quarter results missed expectations, with EPS of $1.89 versus $1.97 expected and revenue of $201.94 billion versus $202.22 billion. Strong AWS growth was offset by concerns over softer guidance and heavy AI-related capital spending that pressured cash flow.
• Despite some analysts cutting price targets, Wall Street sentiment remains broadly positive: Amazon carries a “Moderate Buy” consensus rating and an average target of $320.86, well above the cited share price.

Hyperion Asset Management Ltd lowered its position in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 19.7% during the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 985,145 shares of the e-commerce giant's stock after selling 242,400 shares during the quarter. Amazon.com accounts for approximately 6.7% of Hyperion Asset Management Ltd's investment portfolio, making the stock its 7th biggest holding. Hyperion Asset Management Ltd's holdings in Amazon.com were worth $245,449,000 at the end of the most recent quarter.

Other hedge funds also recently modified their holdings of the company. Prentice Wealth Management LLC grew its holdings in shares of Amazon.com by 5.3% during the 3rd quarter. Prentice Wealth Management LLC now owns 9,394 shares of the e-commerce giant's stock valued at $2,341,000 after purchasing an additional 469 shares during the last quarter. Stewardship Advisors LLC grew its stake in shares of Amazon.com by 1.3% in the 3rd quarter. Stewardship Advisors LLC now owns 4,694 shares of the e-commerce giant's stock worth $1,170,000 after buying an additional 58 shares during the last quarter. Climber Capital SA lifted its holdings in shares of Amazon.com by 172.3% during the 3rd quarter. Climber Capital SA now owns 2,935 shares of the e-commerce giant's stock valued at $693,000 after buying an additional 1,857 shares during the period. Norway Savings Bank raised its holdings in Amazon.com by 2.2% in the 3rd quarter. Norway Savings Bank now owns 33,849 shares of the e-commerce giant's stock worth $8,433,000 after purchasing an additional 731 shares during the period. Finally, Islay Capital Management LLC boosted its position in shares of Amazon.com by 3.5% in the third quarter. Islay Capital Management LLC now owns 15,294 shares of the e-commerce giant's stock worth $3,810,000 after purchasing an additional 517 shares during the period. Institutional investors own 72.20% of the company's stock.

Amazon.com News Summary

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

• Positive Sentiment: AWS growth accelerated significantly. Amazon Web Services revenue rose 39% to approximately $46 billion, its fastest growth in nearly five years. Management said AWS could grow more than 40% annually in 2027 and 2028, supported by AI demand, a large backlog and rising cloud workloads. Analysts including JPMorgan, Canaccord, Monness and RBC maintained bullish ratings or targets, viewing AWS as a potential long-term, trillion-dollar business. AWS growth hits 39 percent
• Positive Sentiment: Amazon continues expanding its AI and adjacent businesses. The company plans to sell its Trainium AI chips externally by late 2027, while Amazon Pharmacy users increased more than 60% year over year and Prime Video reportedly reached profitability. Management also highlighted longer-term opportunities in retail automation, satellite internet and AI infrastructure. Amazon Trainium AI chips
• Neutral Sentiment: Analyst sentiment remains broadly constructive, but targets were trimmed. Several firms reaffirmed Buy or Outperform ratings, with targets generally well above the current trading level. However, Wells Fargo, Morgan Stanley, Wedbush, Scotiabank, Cantor Fitzgerald and others lowered targets, signaling reduced near-term confidence after the earnings release. Amazon price target changes
• Negative Sentiment: Amazon missed both major Q3 estimates. Earnings per share came in at $1.89 versus roughly $1.97–$2.01 expected, while revenue was $201.94 billion compared with about $202.2 billion anticipated. Fourth-quarter revenue guidance was also viewed as soft, raising concerns about holiday-season retail demand. Amazon fourth-quarter guidance
• Negative Sentiment: AI investment is pressuring cash flow and leverage. Amazon spent about $77 billion on property and equipment in Q3 and continues targeting approximately $220 billion in 2026 capital expenditures. Trailing free cash flow fell to a $42.4 billion deficit, while long-term debt increased substantially. Investors are questioning when the spending will generate adequate returns, overshadowing AWS’s strong growth. Amazon AI spending concerns
• Negative Sentiment: Broader technology-sector weakness amplified the selling. Amazon’s report contributed to a wider Nasdaq decline as investors reconsidered whether massive AI infrastructure spending across Big Tech can produce timely profits. Concerns about AI-related debt, cash burn and valuation affected sentiment beyond Amazon itself. Nasdaq and AI spending concerns

Amazon.com Price Performance

Shares of NASDAQ AMZN opened at $240.35 on Monday. The company has a quick ratio of 0.82, a current ratio of 0.99 and a debt-to-equity ratio of 0.28. Amazon.com, Inc. has a 12-month low of $196.00 and a 12-month high of $287.20. The firm's 50-day simple moving average is $254.28 and its 200 day simple moving average is $243.09. The company has a market cap of $2.59 trillion, a price-to-earnings ratio of 19.43, a price-to-earnings-growth ratio of 1.86 and a beta of 1.49.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its earnings results on Thursday, October 29th. The e-commerce giant reported $1.89 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.97 by ($0.08). Amazon.com had a net margin of 16.90% and a return on equity of 15.72%. The firm had revenue of $201.94 billion during the quarter, compared to the consensus estimate of $202.22 billion. During the same period in the previous year, the company posted $1.95 earnings per share. The firm's revenue for the quarter was up 12.1% compared to the same quarter last year. On average, research analysts expect that Amazon.com, Inc. will post 8.00 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. The Goldman Sachs Group restated a "conviction-buy" rating and issued a $370.00 price target on shares of Amazon.com in a research report on Friday. Citigroup reiterated a "market outperform" rating on shares of Amazon.com in a research report on Friday. Tigress Financial reissued a "buy" rating and set a $385.00 price objective (up from $315.00) on shares of Amazon.com in a research report on Tuesday, October 6th. Citizens Jmp cut their price target on Amazon.com from $315.00 to $275.00 and set a "market outperform" rating for the company in a research note on Friday. Finally, Morgan Stanley cut their price objective on shares of Amazon.com from $350.00 to $335.00 and set an "overweight" rating for the company in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $320.86.

Insider Buying and Selling

In related news, CFO Brian Olsavsky sold 6,172 shares of the company'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 transaction of $1,606,633.32. Following the sale, the chief financial officer owned 109,207 shares of the company's stock, valued at approximately $28,427,674.17. This represents a 5.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas Herrington sold 6,362 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 value of $1,647,821.62. Following the completion of the transaction, the chief executive officer owned 476,681 shares in the company, valued at approximately $123,465,145.81. This represents a 1.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 70,589 shares of company stock worth $18,302,125 in the last 90 days. 8.90% of the stock is currently owned by company insiders.

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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