Arrow Capital Management LLC Makes New $28.63 Million Investment in Amazon.com, Inc. $AMZN

Key Points

• Arrow Capital Management disclosed a new position in Amazon, buying 124,026 shares worth about $28.6 million in the fourth quarter. Amazon now makes up roughly 16.7% of the firm’s portfolio, its second-largest holding.
• Institutional interest in Amazon remains strong, with several hedge funds increasing or initiating positions and 72.2% of the stock owned by institutions. That suggests continued broad professional confidence in the company.
• Amazon is getting a wave of positive catalyst coverage, including bullish analyst views on its AI and AWS growth, potential external sales of Trainium chips, and expectations for strong Prime Day sales. At the same time, the company faces some regulatory and labor-related scrutiny tied to its AI and cloud expansion.

Arrow Capital Management LLC purchased a new stake in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 124,026 shares of the e-commerce giant's stock, valued at approximately $28,628,000. Amazon.com comprises about 16.7% of Arrow Capital Management LLC's investment portfolio, making the stock its 2nd biggest holding.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Compagnie Lombard Odier SCmA acquired a new position in shares of Amazon.com during the 3rd quarter worth approximately $451,642,000. Narwhal Capital Management grew its stake in shares of Amazon.com by 2.3% in the fourth quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant's stock valued at $49,997,000 after buying an additional 4,854 shares in the last quarter. Weaver Capital Management LLC increased its holdings in Amazon.com by 13.6% during the fourth quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant's stock worth $9,063,000 after buying an additional 4,713 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Amazon.com by 21.0% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 24,653,228 shares of the e-commerce giant's stock worth $5,690,463,000 after buying an additional 4,275,942 shares during the last quarter. Finally, Ethos Financial Group LLC increased its holdings in Amazon.com by 9.6% during the fourth quarter. Ethos Financial Group LLC now owns 36,485 shares of the e-commerce giant's stock worth $8,421,000 after buying an additional 3,196 shares during the last quarter. Institutional investors and hedge funds own 72.20% of the company's stock.

Key Amazon.com News

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

• Positive Sentiment: Analysts are increasingly bullish on Amazon’s AI and cloud positioning, with multiple firms reiterating Buy ratings and highlighting AWS as a long-term growth driver. Brian Pitz Reiterates Amazon as Top Pick, Maintains Buy Rating and $355 Price Target on Strengthening AI and Cloud Positioning
• Positive Sentiment: Amazon is reportedly exploring sales of its Trainium AI chips to external data center customers, which could open a new revenue stream and deepen its challenge to Nvidia. Amazon exploring selling its custom AI chips to data center customers
• Positive Sentiment: Prime Day is approaching, and Bank of America expects the event to drive strong sales while boosting adoption of Amazon’s AI shopping tools, including Alexa for Shopping. Bank of America Lays Out Expectations Ahead of Amazon Stock’s Prime Day
• Positive Sentiment: Amazon is investing more than €10 billion to expand its European fulfillment network, signaling continued support for e-commerce capacity and logistics efficiency. Amazon Commits €10 Billion for European fulfillment network
• Neutral Sentiment: Amazon is facing EU scrutiny over whether AWS should be classified as a “gatekeeper” under the Digital Markets Act, which could increase regulatory oversight for the cloud unit. Microsoft and Amazon Face EU Digital Markets Act Scrutiny Over Cloud Dominance
• Neutral Sentiment: Amazon MGM Studios dropped the nearly finished OpenAI film “Artificial” after the companies’ broader partnership shift, a move with limited direct financial impact but notable signaling value. Luca Guadagnino’s Sam Altman, OpenAI Film ‘Artificial’ Dropped by Amazon MGM Studios
• Negative Sentiment: Amazon is also dealing with employee and public scrutiny over AI data center expansion and labor practices, which could add regulatory and reputational pressure. Amazon investigating engineers who criticized AI data center expansion

Amazon.com Price Performance

Shares of NASDAQ:AMZN opened at $244.39 on Friday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.18. Amazon.com, Inc. has a 52-week low of $196.00 and a 52-week high of $278.56. The company has a market capitalization of $2.63 trillion, a PE ratio of 29.23, a price-to-earnings-growth ratio of 1.83 and a beta of 1.44. The company has a fifty day moving average of $256.51 and a 200-day moving average of $234.12.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share for the quarter, topping analysts' consensus estimates of $1.63 by $1.15. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The business had revenue of $181.52 billion for the quarter, compared to analyst estimates of $177.28 billion. During the same quarter in the previous year, the company posted $1.59 EPS. Amazon.com's quarterly revenue was up 16.6% compared to the same quarter last year. On average, equities analysts predict that Amazon.com, Inc. will post 7.71 EPS for the current fiscal year.

Wall Street Analyst Weigh In

AMZN has been the subject of a number of recent analyst reports. TD Securities upgraded shares of Amazon.com to a "buy" rating in a research note on Monday, April 13th. BNP Paribas Exane boosted their price objective on shares of Amazon.com from $320.00 to $345.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 5th. Wolfe Research reaffirmed an "outperform" rating and issued a $320.00 target price (up from $245.00) on shares of Amazon.com in a report on Thursday, April 30th. The Goldman Sachs Group reiterated a "buy" rating and issued a $325.00 target price (up from $275.00) on shares of Amazon.com in a research note on Thursday, April 30th. Finally, Pivotal Research reiterated a "buy" rating and set a $320.00 price target (up from $300.00) on shares of Amazon.com in a report on Thursday, April 30th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $312.78.

Insider Transactions at Amazon.com

In related news, CEO Andrew R. Jassy sold 31,352 shares of the business's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $275.00, for a total value of $8,621,800.00. Following the sale, the chief executive officer owned 2,175,766 shares of the company's stock, valued at $598,335,650. The trade was a 1.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of the firm's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $263.40, for a total value of $4,074,007.80. Following the transaction, the chief executive officer directly owned 14,159 shares of the company's stock, valued at approximately $3,729,480.60. This represents a 52.21% 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. Over the last ninety days, insiders sold 195,774 shares of company stock worth $51,614,434. 8.90% of the stock is owned by corporate insiders.

Amazon.com Profile

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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