Amazon.com, Inc. $AMZN Stock: Marotta Asset Management Decreases Stake

Key Points

• Marotta Asset Management cut its Amazon stake by 87.2% in the third quarter, selling 7,681 shares and retaining 1,127 shares valued at approximately $281,000. Other institutional investors increased positions, and institutions collectively own 72.2% of Amazon.
• Amazon reported quarterly revenue of $200.61 billion and EPS of $5.75, exceeding analyst expectations, while revenue grew 19.6% year over year. The stock opened at $262.43, with a market capitalization of $2.83 trillion.
• Analysts remain broadly bullish, assigning Amazon a consensus “Moderate Buy” rating and an average price target of $322.86. Potential catalysts include AWS and AI growth and expanding margins, while heavy AI spending, regulatory scrutiny, and insider selling remain risks.

Marotta Asset Management decreased its position in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 87.2% during the third quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 1,127 shares of the e-commerce giant's stock after selling 7,681 shares during the quarter. Marotta Asset Management's holdings in Amazon.com were worth $281,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of the company. Polaris Financial Partners purchased a new stake in Amazon.com in the 3rd quarter worth $18,572,000. Boltwood Capital Management raised its holdings in Amazon.com by 3.9% during the third quarter. Boltwood Capital Management now owns 19,899 shares of the e-commerce giant's stock valued at $4,958,000 after acquiring an additional 750 shares during the period. GoalVest Advisory LLC raised its holdings in Amazon.com by 289.7% during the third quarter. GoalVest Advisory LLC now owns 86,308 shares of the e-commerce giant's stock valued at $21,504,000 after acquiring an additional 64,160 shares during the period. Planning Strategies Inc. lifted its position in shares of Amazon.com by 4.9% in the third quarter. Planning Strategies Inc. now owns 3,285 shares of the e-commerce giant's stock valued at $818,000 after acquiring an additional 152 shares in the last quarter. Finally, Private Client Services LLC lifted its position in shares of Amazon.com by 22.2% in the third quarter. Private Client Services LLC now owns 17,268 shares of the e-commerce giant's stock valued at $4,302,000 after acquiring an additional 3,132 shares in the last quarter. Institutional investors own 72.20% of the company's stock.

Amazon.com Stock Performance

NASDAQ:AMZN opened at $262.43 on Friday. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. Amazon.com, Inc. has a 1 year low of $196.00 and a 1 year high of $287.20. The stock's 50 day simple moving average is $258.83 and its two-hundred day simple moving average is $249.88. The company has a market cap of $2.83 trillion, a price-to-earnings ratio of 21.11, a PEG ratio of 2.03 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 earnings per share (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 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 for the quarter was up 19.6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.68 EPS. As a group, equities analysts anticipate that Amazon.com, Inc. will post 8.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Matthew S. Garman sold 14,541 shares of the company's stock in a transaction on 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 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas Herrington sold 1,000 shares of the company's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $251.50, for a total transaction of $251,500.00. Following the sale, the chief executive officer directly owned 474,681 shares in the company, valued at approximately $119,382,271.50. The trade was a 0.21% 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 have sold a total of 71,589 shares of company stock valued at $18,580,515 in the last three months. Corporate insiders own 8.90% of the company's stock.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: AI and AWS optimism: AWS CEO Matt Garman said AI spending is not yet in a bubble, citing diversified customers and attractive returns. Analysts also point to AWS’s accelerating growth, custom-chip demand from major AI companies, and Amazon’s planned infrastructure investments as potential long-term catalysts. AWS CEO discusses AI spending
• Positive Sentiment: Analysts see upside: Needham described Amazon as undervalued, citing AI adoption, expanding margins, and cloud leadership. Technical analysts said a double-bottom breakout could open a path toward $320, with resistance near $267.56 and $287.20. Amazon valuation and AI outlook
• Positive Sentiment: Cost-cutting supports margins: Amazon is eliminating fewer than 1,000 positions, primarily in Stores, customer service, marketplace support, and engineering. The cuts may improve efficiency as the company shifts resources toward AI, although they also signal ongoing restructuring. Amazon job cuts
• Neutral Sentiment: Data-center transparency: Amazon said it will stop using nondisclosure agreements in negotiations with local governments over data centers, potentially easing opposition to AI infrastructure while exposing the company to greater public scrutiny. Amazon drops data-center NDAs
• Negative Sentiment: Regulatory and reputational risk: An investigation alleges Amazon pressured sellers to raise prices at competing retailers, potentially increasing antitrust scrutiny. Investigation into Amazon pricing practices
• Negative Sentiment: Heavy AI spending remains a concern: Amazon’s large capital commitments, including planned GPU deployments, could pressure free cash flow if AI demand or returns disappoint. Blocking third-party AI shopping agents may also create an opening for competitors.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on AMZN shares. Phillip Securities lowered Amazon.com from a "strong-buy" rating to a "moderate buy" rating in a research note on Monday, August 3rd. Piper Sandler reissued an "overweight" rating and set a $320.00 target price (up from $315.00) on shares of Amazon.com in a research note on Friday, July 31st. Roth Capital reissued a "buy" rating and issued a $325.00 price target on shares of Amazon.com in a report on Monday, August 3rd. The Goldman Sachs Group reissued a "buy" rating and issued a $375.00 price target (up from $335.00) on shares of Amazon.com in a report on Friday, July 31st. Finally, Bank of America upped their price target on Amazon.com from $310.00 to $320.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Fifty-six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $322.86.

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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