Focused Alpha LLC Takes Position in Amazon.com, Inc. $AMZN

Key Points

• Focused Alpha LLC initiated a $9.4 million Amazon position by purchasing 39,475 shares in the second quarter, making Amazon its ninth-largest holding at approximately 2.4% of the portfolio.
• Amazon’s latest quarter surpassed expectations, with EPS of $5.75 and revenue of $200.61 billion, up 19.6% year over year. AWS growth and expanding AI services remain key bullish catalysts, though the buildout requires substantial capital spending.
• Wall Street remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $323.26 versus a recent share price of $256.78; institutional investors own 72.2% of the stock.

Focused Alpha LLC purchased a new stake in shares of Amazon.com, Inc. (NASDAQ:AMZN) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 39,475 shares of the e-commerce giant's stock, valued at approximately $9,408,000. Amazon.com accounts for approximately 2.4% of Focused Alpha LLC's holdings, making the stock its 9th biggest position.

Other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. raised its position in shares of Amazon.com by 1.1% in the 1st quarter. Vanguard Group Inc. now owns 832,274,556 shares of the e-commerce giant's stock worth $158,348,557,000 after acquiring an additional 8,913,959 shares in the last quarter. State Street Corp boosted its position in shares of Amazon.com by 1.8% during the fourth quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant's stock valued at $89,708,913,000 after purchasing an additional 6,971,680 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Amazon.com by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 225,120,994 shares of the e-commerce giant's stock valued at $51,753,622,000 after purchasing an additional 2,479,324 shares in the last quarter. Norges Bank bought a new stake in shares of Amazon.com during the fourth quarter valued at approximately $32,868,735,000. Finally, Auto Owners Insurance Co grew its stake in Amazon.com by 27,376.7% in 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. 72.20% of the stock is owned by institutional investors.

Trending Headlines about Amazon.com

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

• Positive Sentiment: AWS remains the primary bullish catalyst. Analysts and market commentators described AWS as the “heartbeat” of the AI trade, citing its fastest growth in 18 quarters and Amazon’s ability to combine cloud AI services with its large e-commerce ecosystem. AWS Cloud Heartbeat of AI Trade
• Positive Sentiment: A major Qualcomm partnership strengthens Amazon’s AI infrastructure position. Amazon could purchase as much as $60 billion of Qualcomm AI data-center chips and related products under a long-term agreement. The deal supports AWS capacity expansion and signals confidence in sustained AI demand, although it also implies substantial future capital spending. Qualcomm AI Ambitions Get a Boost From Amazon Partnership
• Positive Sentiment: Amazon’s AI products are gaining enterprise validation. Rivian used Amazon Bedrock to automate finance work and eliminate more than 15 days of manual effort per close cycle, offering a concrete example of potential Bedrock demand. Amazon also expanded its Quick AI assistant to mobile devices. Rivian’s AI Agents Cut 15 Days From Every Close
• Positive Sentiment: Prime Air is moving closer to broader UK drone deliveries. Amazon completed more than 500 flights during a UK trial and is seeking approval to expand service in Darlington. Successful deployment could improve delivery economics and support longer-term logistics automation. Amazon delivery drones set for UK expansion
• Neutral Sentiment: Amazon Pay India is considering travel insurance and other financial products, expanding its potential addressable market but providing limited near-term earnings impact. Amazon Pay plans to expand insurance offerings
• Negative Sentiment: Risks remain around costs, leverage, and operations. Amazon’s AI buildout requires heavy capital spending and new debt, while potential changes to Ohio data-center tax incentives could reduce project economics. Separately, a fatal accident involving an aircraft operating for Prime Air has increased regulatory and reputational risk. Amazon’s Aviation Network Faces a Sobering Test

Amazon.com Stock Performance

Shares of AMZN stock opened at $256.78 on Friday. The company has a market capitalization of $2.77 trillion, a price-to-earnings ratio of 20.66, a price-to-earnings-growth ratio of 1.98 and a beta of 1.44. 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, Inc. has a one year low of $196.00 and a one year high of $287.20. The company's 50-day moving average is $255.56 and its 200 day moving average is $244.13.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to the consensus estimate of $197.03 billion. During the same quarter in the prior year, the firm posted $1.68 earnings per share. The business's revenue was up 19.6% on a year-over-year basis. Sell-side analysts expect that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Truist Financial increased their price objective on Amazon.com from $320.00 to $350.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Jefferies Financial Group restated a "buy" rating on shares of Amazon.com in a report on Thursday, June 18th. Citigroup reaffirmed a "market outperform" rating on shares of Amazon.com in a research report on Friday, August 14th. Morgan Stanley reiterated an "overweight" rating and issued a $335.00 price target (up from $330.00) on shares of Amazon.com in a research note on Friday, July 31st. Finally, BMO Capital Markets reissued an "outperform" rating and set a $360.00 price target (up from $355.00) on shares of Amazon.com in a research report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Amazon.com presently has a consensus rating of "Moderate Buy" and an average target price of $323.26.

Insiders Place Their Bets

In other Amazon.com news, CEO Andrew Jassy sold 20,000 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the sale, the chief executive officer directly owned 2,235,766 shares in the company, valued at approximately $579,085,751.66. This trade represents a 0.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 14,541 shares of the business's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $259.06, for a total value of $3,766,991.46. Following the completion of the transaction, the chief executive officer owned 17,794 shares of the company's stock, valued at $4,609,713.64. This represents a 44.97% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 71,589 shares of company stock worth $18,568,785 in the last three months. Corporate insiders own 8.90% of the company's stock.

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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