Compass Capital Management Inc. Invests $12.94 Million in Amazon.com, Inc. $AMZN

Key Points

• Compass Capital Management initiated a $12.94 million Amazon position, purchasing 54,304 shares during the second quarter. Institutional investors collectively own 72.2% of Amazon’s stock.
• Amazon reported strong quarterly results, with revenue rising 19.6% year over year to $200.61 billion and EPS of $5.75, well above analysts’ $1.82 estimate. Wall Street remains bullish, with a consensus “Moderate Buy” rating and a $323.26 price target.
• Amazon’s growth outlook is supported by major AI and commerce investments, including a potential $60 billion Qualcomm chip deal, but investors remain concerned about roughly $220 billion in capital expenditures, financing needs and possible higher data-center costs.

Compass Capital Management Inc. bought a new position in shares of Amazon.com, Inc. (NASDAQ:AMZN) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 54,304 shares of the e-commerce giant's stock, valued at approximately $12,943,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of AMZN. Trust Asset Management LLC lifted its stake in Amazon.com by 3.3% during the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant's stock valued at $26,000 after buying an additional 3,414 shares in the last quarter. Longfellow Investment Management Co. LLC purchased a new position in shares of Amazon.com in the second quarter worth approximately $33,000. MilWealth Group LLC increased its position in shares of Amazon.com by 79.0% in the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant's stock worth $41,000 after acquiring an additional 79 shares in the last quarter. Lifetime Wealth Management P.C. acquired a new stake in shares of Amazon.com during the fourth quarter valued at approximately $45,000. Finally, Elkhorn Partners Limited Partnership raised its holdings in shares of Amazon.com by 900.0% during the fourth quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant's stock valued at $46,000 after acquiring an additional 180 shares during the period. 72.20% of the stock is currently owned by institutional investors.

Trending Headlines about Amazon.com

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

• Positive Sentiment: Amazon agreed to purchase up to $60 billion of Qualcomm’s custom data-center chips through 2036, diversifying AWS’s AI hardware supply beyond Nvidia and potentially improving infrastructure flexibility. The deal also reinforces expectations for continued AWS expansion. Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal
• Positive Sentiment: Amazon is expanding its Quick AI assistant to iPhone and Android, adding a feed that prioritizes email, Slack, calendar and CRM updates. The move strengthens its enterprise AI offering against Microsoft and Google. Amazon expands its Quick AI assistant on mobile
• Positive Sentiment: New Prime Video shopping tools will let viewers discover products through X-Ray features, creating another potential advertising and commerce channel. Amazon is also allowing selected brands to advertise inside ChatGPT through a partnership with OpenAI. Amazon makes it easier to buy what you see on Prime Video
• Positive Sentiment: Amazon plans to invest more than $230 million in Whole Foods employee pay and benefits, while six additional Ariane 6 launches support the company’s Leo satellite-broadband expansion. These investments broaden Amazon’s retail and infrastructure growth opportunities. Amazon's Whole Foods Market Plans Over $230 Million for Worker Pay, Benefits
• Neutral Sentiment: Amazon added cybersecurity executive Kevin Mandia to its board, bringing expertise from Mandiant and Google. The appointment is strategically relevant but unlikely to materially affect near-term earnings. Amazon adds cybersecurity veteran Kevin Mandia to board
• Negative Sentiment: Investors remain concerned about Amazon’s roughly $220 billion in 2026 capital expenditures and its first sterling bond offering to help fund AI infrastructure. Higher interest rates, negative free cash flow and uncertain returns could pressure valuation. Amazon starts selling first sterling bonds
• Negative Sentiment: Potential changes to Ohio data-center tax incentives could raise the cost of Amazon’s planned nearly $40 billion AI buildout. Separately, a lawsuit alleging violations of the Pregnant Workers Fairness Act adds legal and reputational risk. Amazon's $40 billion Ohio AI bet faces a tax shock

Amazon.com Trading Down 0.2%

Shares of Amazon.com stock opened at $251.89 on Friday. Amazon.com, Inc. has a 1 year low of $196.00 and a 1 year high of $287.20. The company's fifty day simple moving average is $255.28 and its 200-day simple moving average is $244.04. The company has a market cap of $2.72 trillion, a price-to-earnings ratio of 20.26, a PEG ratio of 1.95 and a beta of 1.44. 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 (NASDAQ:AMZN - Get Free Report) last released its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, beating the consensus estimate of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The firm had revenue of $200.61 billion during the quarter, compared to analysts' expectations of $197.03 billion. During the same period in the prior year, the company earned $1.68 EPS. The business's quarterly revenue was up 19.6% compared to the same quarter last year. As a group, sell-side analysts expect that Amazon.com, Inc. will post 8.05 EPS for the current year.

Insider Activity at Amazon.com

In other news, SVP David Zapolsky sold 9,258 shares of the company's 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 completion of the transaction, the senior vice president owned 41,190 shares of the company's stock, valued at approximately $10,699,926.30. This represents a 18.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas Herrington sold 6,362 shares of the 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 owned 476,681 shares of the company's stock, valued at approximately $123,465,145.81. The trade was a 1.32% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 71,589 shares of company stock worth $18,568,785. Insiders own 8.90% of the company's stock.

Wall Street Analysts Forecast Growth

AMZN has been the subject of a number of recent analyst reports. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $338.00 price objective (up from $328.00) on shares of Amazon.com in a research note on Thursday, September 3rd. Roth Capital reiterated a "buy" rating and issued a $325.00 target price on shares of Amazon.com in a research report on Monday, August 3rd. Rosenblatt Securities started coverage on Amazon.com in a report on Thursday, August 20th. They set a "buy" rating and a $335.00 price target for the company. Phillip Securities lowered shares of Amazon.com from a "strong-buy" rating to a "moderate buy" rating in a research note on Monday, August 3rd. Finally, Wedbush upped their target price on Amazon.com from $293.00 to $310.00 and gave the stock an "outperform" rating in a research report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, Amazon.com currently has an average rating of "Moderate Buy" and a consensus price target of $323.26.

Amazon.com Profile

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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