Amazon.com, Inc. $AMZN Stock: State Street Corp Increases Position

Key Points

• State Street increased its Amazon stake by 5.5% in the second quarter, acquiring 21.4 million additional shares and bringing its holdings to approximately 411.8 million shares, worth $95.5 billion. Institutional investors collectively own 72.2% of Amazon.
• Amazon reported quarterly revenue of $200.61 billion and adjusted earnings of $5.75 per share, substantially exceeding analyst expectations, with revenue up 19.6% year over year. Analysts maintain a “Moderate Buy” consensus and an average price target of $322.86.
• Amazon’s outlook is supported by AWS and AI growth, margin expansion, and infrastructure investments, although heavy AI spending, regulatory scrutiny, restructuring, and recent insider stock sales remain key risks.

State Street Corp lifted its holdings in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 5.5% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 411,848,346 shares of the e-commerce giant's stock after acquiring an additional 21,398,025 shares during the period. Amazon.com accounts for about 1.9% of State Street Corp's portfolio, making the stock its 6th biggest holding. State Street Corp owned approximately 3.82% of Amazon.com worth $95,504,904,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Red Crane Wealth Management LLC grew its holdings in Amazon.com by 2.3% during the 1st quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant's stock valued at $346,000 after buying an additional 38 shares in the last quarter. Robinson Smith Wealth Advisors LLC increased its holdings in Amazon.com by 0.7% in the 1st quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant's stock valued at $1,147,000 after acquiring an additional 40 shares during the last quarter. Sfam LLC lifted its stake in Amazon.com by 3.4% in the 1st quarter. Sfam LLC now owns 1,224 shares of the e-commerce giant's stock worth $255,000 after purchasing an additional 40 shares in the last quarter. Measured Risk Portfolios Inc. boosted its holdings in shares of Amazon.com by 3.4% during the 1st quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant's stock valued at $251,000 after purchasing an additional 40 shares during the last quarter. Finally, CoreFirst Bank & Trust grew its position in shares of Amazon.com by 1.1% during the first quarter. CoreFirst Bank & Trust now owns 3,620 shares of the e-commerce giant's stock valued at $754,000 after purchasing an additional 40 shares in the last quarter. Hedge funds and other institutional investors own 72.20% of the company's stock.

Amazon.com Trading Up 3.3%

Shares of AMZN opened at $262.43 on Friday. The company's fifty day simple moving average is $258.83 and its 200-day simple moving average is $249.88. The company has a market cap of $2.83 trillion, a P/E ratio of 21.11, a P/E/G ratio of 1.96 and a beta of 1.45. 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 twelve month low of $196.00 and a twelve month high of $287.20.

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 for the quarter, topping analysts' consensus estimates of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. During the same period in the prior year, the company posted $1.68 EPS. The firm's revenue for the quarter was up 19.6% on a year-over-year basis. As a group, analysts expect that Amazon.com, Inc. will post 8.03 EPS for the current year.

Analysts Set New Price Targets

A number of equities research analysts recently commented on AMZN shares. Truist Financial boosted their target price on Amazon.com from $320.00 to $350.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Sanford C. Bernstein restated an "outperform" rating and set a $320.00 price target (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Robert W. Baird set a $310.00 price objective on Amazon.com and gave the stock an "outperform" rating in a report on Friday, July 31st. Wedbush increased their target price on Amazon.com from $293.00 to $310.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. Finally, Tigress Financial reissued a "buy" rating and issued a $385.00 target price (up from $315.00) on shares of Amazon.com in a report on Tuesday. Fifty-six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $322.86.

Key Headlines 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.

Insider Buying and Selling

In related news, SVP David Zapolsky sold 9,258 shares of the firm's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $259.77, for a total value of $2,404,950.66. Following the transaction, the senior vice president owned 41,190 shares of the company's stock, valued at $10,699,926.30. This trade represents a 18.35% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible 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 business's stock in a transaction dated 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 completion of the sale, the chief executive officer directly owned 476,681 shares of the company's stock, valued at approximately $123,465,145.81. This trade 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 a total of 71,589 shares of company stock worth $18,580,515 over the last ninety days. Corporate insiders own 8.90% of the company's stock.

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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