Capital Square LLC Purchases New Holdings in Amazon.com, Inc. $AMZN

Key Points

• Capital Square LLC acquired 19,104 Amazon shares worth approximately $4.7 million in the second quarter, making Amazon its fifth-largest holding. Institutional investors collectively own 72.2% of Amazon’s stock.
• Amazon’s growth outlook remains supported by strong AWS and AI demand, an $8 billion Generac generator agreement to help power data centers, and plans to expand same-day delivery to more than 1,000 hubs by 2031.
• Analysts remain broadly bullish, with 56 Buy ratings, three Holds, and a $321.19 consensus price target; however, regulatory scrutiny and roughly $220 billion in planned 2026 capital expenditures pose risks to free cash flow.

Capital Square LLC acquired a new position in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 19,104 shares of the e-commerce giant's stock, valued at approximately $4,687,000. Amazon.com accounts for approximately 2.1% of Capital Square LLC's investment portfolio, making the stock its 5th biggest position.

Other institutional investors have also added to or reduced their stakes in the company. Meiji Yasuda Asset Management Co Ltd. purchased a new stake in Amazon.com in the 2nd quarter valued at about $44,239,000. Clarion Wealth Managment Partners LLC purchased a new position in shares of Amazon.com during the second quarter worth approximately $1,996,000. Te Ahumairangi Investment Management Ltd purchased a new position in shares of Amazon.com during the second quarter worth approximately $10,107,000. Magellan Asset Management Ltd bought a new stake in shares of Amazon.com during the second quarter valued at approximately $149,627,000. Finally, Mission Financial Group LLC bought a new stake in shares of Amazon.com during the second quarter valued at approximately $2,033,000. Institutional investors 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: Amazon agreed to purchase up to $8 billion of backup generators from Generac, including approximately $2.4 billion of deliveries in 2027–2028. The deal should help Amazon bring AWS data centers online despite grid-connection delays and power shortages, while Amazon receives warrants to purchase Generac shares. Generac Plugs into Amazon for an $8B AI-Powered Deal
• Positive Sentiment: Analysts and investors continue to point to accelerating AWS demand, with reports citing a $169 billion annualized revenue run rate and a large cloud backlog. That supports expectations that AI-related infrastructure spending can translate into future sales, despite near-term cash-flow pressure. Amazon’s Andy Jassy Just Made a Startling Prediction
• Positive Sentiment: Project Mercury aims to expand Amazon’s same-day delivery network to more than 1,000 hubs by 2031. Bank of America called the initiative strategically important as Amazon attempts to narrow Walmart’s proximity and convenience advantage. Amazon’s secret weapon against Walmart could be a massive blitz in same-day delivery
• Positive Sentiment: AWS made its AI-powered hiring product, Amazon Connect Talent, generally available, expanding Amazon’s enterprise AI offerings beyond cloud infrastructure. Amazon has also received favorable attention from UBS analysts among top technology stock picks.
• Neutral Sentiment: Amazon is promoting industry and government cooperation on AI safety standards, emphasizing testing before release without calling for a broader slowdown in development. The stance may improve trust but is unlikely to materially change near-term results. Amazon Urges Industry and Government Partnership on AI Safeguards
• Negative Sentiment: Amazon faces European Commission scrutiny over marketplace rules that may restrict sellers from offering lower prices elsewhere, creating potential regulatory and compliance costs.
• Negative Sentiment: Investors remain concerned that roughly $220 billion of planned 2026 capital expenditures could keep free cash flow negative. Higher wages, delivery costs and possible electricity-grid charges for data centers add to the spending burden.
• Negative Sentiment: U.S. senators have urged the FTC to investigate Amazon’s AI shopping tools over alleged suppression of U.S.-made products and misleading “Made in USA” labels. The company also continues to face reputational and legal attention related to its Prime settlement.

Insider Activity at Amazon.com

In other Amazon.com news, CEO Douglas Herrington sold 1,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $254.77, for a total value of $254,770.00. Following the completion of the sale, the chief executive officer directly owned 475,681 shares in the company, valued at $121,189,248.37. This trade represents a 0.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,343 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $606,860.43. Following the completion of the sale, the vice president owned 119,780 shares of the company's stock, valued at approximately $31,024,217.80. This trade represents a 1.92% 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. Insiders have sold a total of 71,589 shares of company stock valued at $18,568,785 over the last three months. Company insiders own 8.90% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the company. Evercore set a $355.00 price objective on Amazon.com and gave the stock an "outperform" rating in a research note on Friday, August 28th. Morgan Stanley reiterated an "overweight" rating and issued a $335.00 target price (up from $330.00) on shares of Amazon.com in a report on Friday, July 31st. Telsey Advisory Group set a $335.00 price target on Amazon.com and gave the stock an "outperform" rating in a research report on Friday, July 31st. Citigroup restated a "market outperform" rating on shares of Amazon.com in a research note on Friday, August 14th. Finally, Bank of America lifted their price objective on Amazon.com from $310.00 to $320.00 and gave the company a "buy" rating in a report 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. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $321.19.

Amazon.com Stock Performance

Shares of Amazon.com stock opened at $253.71 on Monday. The company has a market capitalization of $2.74 trillion, a PE ratio of 20.41, a P/E/G ratio of 1.97 and a beta of 1.44. The company has a 50-day simple moving average of $256.09 and a two-hundred day simple moving average of $245.86. Amazon.com, Inc. has a one year low of $196.00 and a one year high of $287.20. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03.

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. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The business had revenue of $200.61 billion for the quarter, compared to analysts' expectations of $197.03 billion. During the same period last year, the business earned $1.68 EPS. The company's revenue was up 19.6% compared to the same quarter last year. Research analysts expect that Amazon.com, Inc. will post 8.01 EPS for the current fiscal year.

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company that operates online marketplaces and provides a broad range of consumer products and services. Its retail business sells merchandise directly to customers and enables third-party sellers to offer products through Amazon's websites and applications. The company also operates physical stores and provides services such as digital content, subscriptions, and consumer devices, including Kindle and Echo products.

Amazon Web Services (AWS) provides cloud computing, storage, database, analytics, artificial intelligence, machine learning, and other technology services to businesses, governments, and organizations.

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