Amazon.com, Inc. $AMZN Stock: Overbrook Management Corp Lowers Holdings

Key Points

• Overbrook Management reduced its Amazon stake by 20.9% in the third quarter, selling 29,337 shares and retaining 110,878 shares valued at approximately $27.6 million.
• Institutional sentiment was mixed: several investors increased their holdings, while institutional investors and hedge funds collectively own 72.2% of Amazon’s stock.
• Amazon’s outlook remains supported by strong AWS and AI growth, but planned AI spending of roughly $200 billion to $220 billion is raising concerns about capital intensity and free cash flow. Wall Street’s consensus rating is “Moderate Buy,” with an average price target of $322.53.

Overbrook Management Corp lowered its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 20.9% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 110,878 shares of the e-commerce giant's stock after selling 29,337 shares during the quarter. Amazon.com comprises approximately 4.4% of Overbrook Management Corp's holdings, making the stock its 10th largest holding. Overbrook Management Corp's holdings in Amazon.com were worth $27,625,000 as of its most recent SEC filing.

Other large investors have also recently bought and sold shares of the company. CoreCap Advisors LLC boosted its holdings in Amazon.com by 0.9% in the 3rd quarter. CoreCap Advisors LLC now owns 119,152 shares of the e-commerce giant's stock valued at $29,629,000 after purchasing an additional 1,064 shares during the period. Kure Advisory LLC increased its stake in Amazon.com by 2.5% during the third quarter. Kure Advisory LLC now owns 2,259 shares of the e-commerce giant's stock valued at $563,000 after acquiring an additional 55 shares during the period. Artemis Investment Management LLP raised its holdings in Amazon.com by 24.4% in the 3rd quarter. Artemis Investment Management LLP now owns 811,885 shares of the e-commerce giant's stock valued at $202,281,000 after acquiring an additional 159,358 shares in the last quarter. Dickmeyer Boyce Financial Management Inc. raised its holdings in Amazon.com by 1.8% in the 3rd quarter. Dickmeyer Boyce Financial Management Inc. now owns 10,890 shares of the e-commerce giant's stock valued at $2,713,000 after acquiring an additional 190 shares in the last quarter. Finally, Aletheian Wealth Advisors LLC lifted its position in shares of Amazon.com by 10.2% in the 3rd quarter. Aletheian Wealth Advisors LLC now owns 10,335 shares of the e-commerce giant's stock worth $2,575,000 after acquiring an additional 955 shares during the period. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Key Amazon.com News

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

• Positive Sentiment: AWS remains the key bullish catalyst. Reports highlight a $496 billion AWS backlog, cloud margins near 39%, and continued demand for AI infrastructure. Amazon also said its custom-chip and AI businesses each surpassed $25 billion, supporting the case that Trainium and Inferentia could eventually reduce reliance on Nvidia GPUs. AWS Backlog and Cloud Margins
• Positive Sentiment: Amazon is expanding its AI ecosystem. The company is reportedly considering a roughly $7 billion acquisition of Decart, whose software helps run AI workloads across Nvidia and Amazon chips. The deal could accelerate Trainium adoption and improve AWS’s competitive position. Amazon Decart AI Deal
• Positive Sentiment: Analyst fundamentals remain supportive. Erste Group raised its FY2027 EPS estimate to $10.71 from $10.54, while Amazon’s Prime Video sports strategy could increase engagement, retention and advertising opportunities. Amazon Prime Video Sports Strategy
• Neutral Sentiment: Investor positioning may amplify volatility. Amazon was reportedly the most widely owned hedge-fund stock in September, creating potential support but also increasing the risk of crowded-trade selling if earnings or AWS growth disappoints. Amazon Hedge Fund Ownership
• Negative Sentiment: AI investment is pressuring cash flow. Amazon’s planned spending of roughly $200 billion to $220 billion raises concerns about capital intensity, returns on invested capital and near-term free cash flow, even as operating cash flow improves. Amazon AI Spending
• Negative Sentiment: Regulatory and execution risks increased. Lawmakers asked the FAA to conduct a site-specific environmental review of Amazon’s proposed Massachusetts drone hub, citing noise, privacy, safety and environmental concerns. Amazon also recalled more than 112,000 bottles of acetaminophen sold through its platform. FAA Review of Amazon Drone Hub
• Negative Sentiment: New hardware faces market skepticism. Amazon’s $499.99-plus Alexa Tablet 12 Pro moves the company into a higher-priced segment against Apple’s iPad, while Apple’s new smart-home products intensify competition. Amazon Alexa Tablet Launch

Amazon.com Price Performance

Shares of Amazon.com stock opened at $254.08 on Thursday. The stock has a market capitalization of $2.74 trillion, a price-to-earnings ratio of 20.44, a P/E/G ratio of 2.00 and a beta of 1.45. The firm's 50-day moving average price is $257.59 and its two-hundred day moving average price is $251.19. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. Amazon.com, Inc. has a 1-year low of $196.00 and a 1-year high of $287.20.

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, beating analysts' consensus estimates of $1.82 by $3.93. The firm 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 business's revenue was up 19.6% on a year-over-year basis. During the same period last year, the firm posted $1.68 EPS. On average, equities analysts predict that Amazon.com, Inc. will post 8.03 earnings per share for the current fiscal year.

Insider Buying and Selling at Amazon.com

In other Amazon.com news, SVP David Zapolsky sold 9,258 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the sale, the senior vice president owned 41,190 shares of the company's stock, valued at $10,699,926.30. This represents a 18.35% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 the business's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $1,647,821.62. Following the completion of the transaction, the chief executive officer directly owned 476,681 shares of the company's stock, valued at approximately $123,465,145.81. This represents a 1.32% decrease in their ownership of the stock. 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 have sold 71,589 shares of company stock worth $18,580,515 over the last quarter. Corporate insiders own 8.90% of the company's stock.

Wall Street Analyst Weigh In

AMZN has been the topic of a number of research reports. Pivotal Research restated a "buy" rating and set a $333.00 price objective (up from $320.00) on shares of Amazon.com in a research report on Friday, July 31st. Wells Fargo & Company set a $329.00 target price on Amazon.com and gave the stock an "overweight" rating 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. Susquehanna reaffirmed a "positive" rating on shares of Amazon.com in a report on Tuesday, October 6th. Finally, Wedbush raised their price objective on shares of Amazon.com from $293.00 to $310.00 and gave the stock an "outperform" rating in a report on Friday, July 31st. Fifty-six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average 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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