Archon Partners LLC Trims Stock Holdings in Amazon.com, Inc. $AMZN

Key Points

• Archon Partners LLC reduced its Amazon stake by 3.9% in the first quarter, selling 9,660 shares and retaining 240,000 shares valued at approximately $50 million. Amazon represents about 5.9% of the firm’s portfolio.
• Amazon reported strong quarterly results, with revenue of $200.61 billion, up 19.6% year over year, and EPS of $5.75 versus the $1.82 consensus estimate. Institutional investors own 72.2% of the company.
• Wall Street remains broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $322.56, though heavy AI-related capital spending and insider/shareholder sales could pressure cash flow and investor sentiment.

Archon Partners LLC cut its position in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 3.9% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 240,000 shares of the e-commerce giant's stock after selling 9,660 shares during the quarter. Amazon.com comprises about 5.9% of Archon Partners LLC's holdings, making the stock its 4th largest position. Archon Partners LLC's holdings in Amazon.com were worth $49,985,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. Norges Bank acquired a new position in shares of Amazon.com in the 4th quarter valued at about $32,868,735,000. Auto Owners Insurance Co grew its stake in Amazon.com by 27,376.7% during the fourth quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant's stock worth $2,272,397,000 after purchasing an additional 98,090,585 shares during the period. J. Stern & Co. LLP grew its stake in Amazon.com by 20,598.0% during the fourth quarter. J. Stern & Co. LLP now owns 87,982,814 shares of the e-commerce giant's stock worth $20,308,193,000 after purchasing an additional 87,557,736 shares during the period. Nuveen LLC bought a new stake in Amazon.com in the first quarter worth approximately $11,674,091,000. Finally, Cardano Risk Management B.V. increased its holdings in Amazon.com by 879.4% in the fourth quarter. Cardano Risk Management B.V. now owns 27,862,400 shares of the e-commerce giant's stock worth $6,431,199,000 after purchasing an additional 25,017,588 shares in the last quarter. Institutional investors own 72.20% of the company's stock.

Amazon.com Stock Performance

AMZN opened at $274.48 on Friday. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The company's fifty day moving average price is $246.35 and its two-hundred day moving average price is $237.46. Amazon.com, Inc. has a 1-year low of $196.00 and a 1-year high of $287.20. The company has a market cap of $2.96 trillion, a price-to-earnings ratio of 22.08, a PEG ratio of 1.83 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, 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 net margin of 17.44% and a return on equity of 18.00%. The business's revenue was up 19.6% on a year-over-year basis. During the same period last year, the company earned $1.68 earnings per share. On average, analysts expect that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.

Trending Headlines about Amazon.com

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

• Positive Sentiment: AWS and AI demand remain the main bullish catalysts. Recent coverage highlights AWS growth of roughly 37%, a reported $496 billion backlog, and sustained demand for AI infrastructure. Amazon has raised its 2026 capital-expenditure outlook to approximately $220 billion and plans to expand data-center capacity, signaling confidence that demand will continue. Amazon: $3 Trillion Is a Milestone, Not a Ceiling
• Positive Sentiment: Recent operating results and analyst views support the stock. Amazon’s latest quarter exceeded consensus estimates, with revenue of $200.61 billion, up 19.6% year over year. Zacks upgraded the shares to “Strong Buy,” while other analysts raised price targets, reinforcing the view that AWS, advertising, and retail improvements can offset higher spending. AI Boom: Top Stocks to Consider for Your Portfolio
• Positive Sentiment: Amazon Pharmacy is expanding its healthcare opportunity. Eligible Medicare Part D patients can access certain GLP-1 weight-loss drugs, including Wegovy and Zepbound, for $50 per month through a federal program. The initiative could increase pharmacy traffic and strengthen Amazon’s position in prescription fulfillment, though near-term financial benefits are uncertain. Amazon Pharmacy Offers Weight-Loss Drugs
• Neutral Sentiment: Amazon’s AI spending is producing both optimism and concern. Bullish investors argue strong AWS demand and committed capacity can justify the investment cycle, while valuation experts warn that hyperscalers may be “overinvesting” before returns are clear. The heavier spending could pressure free cash flow and margins if AI monetization slows. Amazon’s Massive Capex Expansion
• Negative Sentiment: Large shareholder sales are creating supply concerns. Jeff Bezos plans to sell roughly 15 million shares valued near $4 billion, while Amazon CEO Douglas Herrington sold 1,000 shares under a pre-arranged Rule 10b5-1 plan. Berkshire Hathaway also exited its Amazon position in the first quarter. These transactions do not change Amazon’s fundamentals but may weigh on sentiment after the stock’s rally. Bezos Plans to Sell Amazon Stock

Insiders Place Their Bets

In other news, CEO Andrew R. Jassy sold 20,000 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $263.42, for a total value of $5,268,400.00. Following the completion of the sale, the chief executive officer directly owned 2,205,766 shares of the company's stock, valued at $581,042,879.72. This represents a 0.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $262.38, for a total value of $620,003.94. Following the completion of the transaction, the vice president owned 119,780 shares in the company, valued at $31,427,876.40. This represents a 1.93% 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 have sold 77,867 shares of company stock worth $20,532,092 in the last 90 days. Company insiders own 8.90% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on AMZN shares. Arete Research increased their price target on Amazon.com from $301.00 to $310.00 and gave the stock a "buy" rating in a report on Monday, May 18th. Monness Crespi & Hardt boosted their target price 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. Benchmark increased their target price on shares of Amazon.com from $370.00 to $400.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Stifel Nicolaus set a $319.00 price target on shares of Amazon.com and gave the company a "buy" rating in a research note on Thursday, April 30th. Finally, Roth Capital reiterated a "buy" rating and set a $325.00 price objective on shares of Amazon.com in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $322.56.

About Amazon.com

Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.

Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.

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