Amazon.com, Inc. $AMZN Stock: Investors Research Corp Boosts Position

Key Points

• Investors Research Corp nearly doubled its Amazon stake in the third quarter, increasing holdings by 94.4% to 14,597 shares valued at approximately $3.64 million. Institutional investors collectively own 72.2% of Amazon’s stock.
• Amazon reported strong quarterly results, with $5.75 in EPS and $200.61 billion in revenue, exceeding analyst expectations; revenue increased 19.6% year over year.
• Analyst sentiment remains favorable, with 56 Buy ratings and three Holds and an average price target of $322.53, though investors continue to monitor the substantial costs of Amazon’s AI infrastructure expansion.

Investors Research Corp lifted its stake in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 94.4% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 14,597 shares of the e-commerce giant's stock after acquiring an additional 7,089 shares during the period. Investors Research Corp's holdings in Amazon.com were worth $3,637,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in AMZN. State Street Corp boosted its stake in Amazon.com by 5.5% in 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 purchasing 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 second quarter valued at about $22,218,775,000. Bank of New York Mellon Corp bought a new stake in shares of Amazon.com during the second quarter valued at about $16,341,405,000. Amundi increased its position in shares of Amazon.com by 3.9% during the second quarter. Amundi now owns 63,822,242 shares of the e-commerce giant's stock valued at $15,211,393,000 after buying an additional 2,421,739 shares during the period. Finally, Invesco Ltd. lifted its holdings in shares of Amazon.com by 3.3% in the fourth quarter. Invesco Ltd. now owns 59,604,857 shares of the e-commerce giant's stock worth $13,757,993,000 after buying an additional 1,879,630 shares in the last quarter. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Amazon.com Trading Down 1.1%

NASDAQ AMZN opened at $259.53 on Tuesday. The stock's 50-day simple moving average is $258.34 and its two-hundred day simple moving average is $250.53. Amazon.com, Inc. has a twelve month low of $196.00 and a twelve month high of $287.20. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. The company has a market capitalization of $2.80 trillion, a price-to-earnings ratio of 20.88, a PEG ratio of 2.03 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%. The firm had revenue of $200.61 billion during the quarter, compared to analysts' expectations of $197.03 billion. During the same period in the prior year, the business earned $1.68 EPS. The company's revenue for the quarter was up 19.6% compared to the same quarter last year. Research analysts forecast that Amazon.com, Inc. will post 8.03 EPS for the current fiscal year.

Insider Activity at Amazon.com

In other Amazon.com news, CEO Matthew Garman sold 14,541 shares of the company's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $259.06, for a total value of $3,766,991.46. Following the completion of the sale, the chief executive officer owned 17,794 shares of the company's stock, valued at $4,609,713.64. This represents a 44.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 6,362 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $1,647,821.62. Following the transaction, the chief executive officer owned 476,681 shares in the company, valued at $123,465,145.81. The trade was a 1.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 71,589 shares of company stock worth $18,580,515 in the last quarter. 8.90% of the stock is owned by company insiders.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Amazon is reportedly in talks to acquire AI startup Decart for approximately $7 billion. Decart’s software helps developers move workloads between different AI chips, potentially strengthening Amazon Web Services, its custom-chip strategy and its competitive position in generative AI. The deal remains uncertain and could still collapse. Amazon in Talks to Buy AI Startup Decart for Around $7 Billion
• Positive Sentiment: Analyst coverage remains broadly supportive. Reports citing 58 analysts showed no sell ratings, while Cantor Fitzgerald maintained an “overweight” rating and a $310 target, implying substantial upside despite trimming its target from $320. Amazon.com Price Target Lowered to $310 From $320
• Positive Sentiment: Several bullish analyses point to accelerating AWS growth, a growing advertising business and a large cloud backlog as reasons Amazon’s higher-margin businesses could support long-term earnings growth. Why It’s Time to Load Up on Amazon Stock
• Neutral Sentiment: Amazon’s reported AI ambitions include continued work with Anthropic, possible AI-startup investments and a potential satellite-internet bundle with Prime. These initiatives could expand its ecosystem, but they are longer-term opportunities without immediate earnings impact. Amazon Could Bundle Satellite Internet With Prime
• Negative Sentiment: Investors remain concerned about the scale of Amazon’s AI infrastructure spending. Amazon, Microsoft, Meta and Alphabet are expected to spend roughly $750 billion on capital expenditures this year, raising questions about free-cash-flow pressure and the returns on those investments. The Staggering Costs of a Single Data Center
• Negative Sentiment: Amazon is also reportedly considering an $8 billion financing structure for Nvidia AI chips, which could make spending more asset-light but underscores the enormous cost of its AI buildout. Amazon Wants Investors to Finance $8 Billion of Nvidia Chips
• Negative Sentiment: Amazon-specific commentary has highlighted a more challenging economic backdrop and a rating downgrade, while technology stocks broadly declined during the session, adding pressure to AMZN regardless of its company-specific catalysts. Amazon: The Economic Challenge Gets Bigger

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Monness Crespi & Hardt raised their price objective on shares of Amazon.com from $315.00 to $330.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Zacks Research cut shares of Amazon.com from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 14th. UBS Group set a $200.00 target price on shares of Amazon.com in a report on Thursday, September 17th. Robert W. Baird set a $310.00 target price on shares of Amazon.com and gave the stock an "outperform" rating in a research note on Friday, July 31st. Finally, Royal Bank Of Canada raised their price target on shares of Amazon.com from $320.00 to $330.00 and gave the company an "outperform" rating in a report on Friday, July 31st. Fifty-six research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Amazon.com has an average rating of "Moderate Buy" and an average price target of $322.53.

Amazon.com Company 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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