Madrona Financial Services LLC Acquires 6,973 Shares of Amazon.com, Inc. $AMZN

Key Points

• Madrona Financial Services increased its Amazon stake by 62.4% in the third quarter, buying 6,973 shares to hold 18,149 shares valued at about $4.52 million.
• Institutional investors and hedge funds own 72.2% of Amazon shares. Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $321.74.
• Amazon’s latest quarterly revenue rose 12.1% year over year but slightly missed estimates, as did EPS. AWS and advertising growth offer potential upside, while AI and data-center spending raises cash-flow and cost concerns.

Madrona Financial Services LLC lifted its holdings in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 62.4% in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 18,149 shares of the e-commerce giant's stock after purchasing an additional 6,973 shares during the quarter. Madrona Financial Services LLC's holdings in Amazon.com were worth $4,522,000 as of its most recent filing with the SEC.

A number of other large investors also recently modified their holdings of the business. State Street Corp boosted its stake in Amazon.com by 5.5% during the 2nd quarter. State Street Corp now owns 411,848,346 shares of the e-commerce giant's stock valued at $95,504,904,000 after purchasing an additional 21,398,025 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of Amazon.com during the 2nd quarter valued at $22,218,775,000. Bank of New York Mellon Corp acquired a new position in shares of Amazon.com during the 2nd quarter valued at $16,341,405,000. Amundi raised its stake in shares of Amazon.com by 3.9% in the 2nd quarter. Amundi now owns 63,822,242 shares of the e-commerce giant's stock worth $15,211,393,000 after buying an additional 2,421,739 shares in the last quarter. Finally, Legal & General Group Plc bought a new stake in shares of Amazon.com in the 2nd quarter worth $12,831,376,000. 72.20% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on AMZN shares. Sanford C. Bernstein restated an "outperform" rating and issued a $320.00 price objective (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Phillip Securities raised Amazon.com from a "moderate buy" rating to a "strong-buy" rating in a report on Monday, November 2nd. Barclays reiterated an "overweight" rating and issued a $365.00 price target (up from $330.00) on shares of Amazon.com in a research report on Friday, July 31st. Piper Sandler reiterated an "overweight" rating on shares of Amazon.com in a research report on Friday, October 30th. Finally, Monness Crespi & Hardt upped their price target on shares of Amazon.com from $315.00 to $330.00 and gave the company a "buy" rating in a report on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, fifty-five have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Amazon.com has a consensus rating of "Moderate Buy" and a consensus price target of $321.74.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: AWS growth could be a major long-term catalyst. CEO Andy Jassy sees AWS potentially becoming a $1 trillion business over the next decade, with strong AI demand supporting rapid growth. That outlook may help reassure investors that Amazon’s large infrastructure investments can generate substantial future revenue. Article: Amazon's CEO Andy Jassy Just Announced Huge News for Amazon Investors
• Positive Sentiment: Advertising remains another growth engine. Amazon’s ad revenue grew 12% in the latest quarter, and management expects high-teens growth next, offering a potential boost beyond retail and cloud. Article: Not Alphabet. Not Meta. This Is the Digital Advertising Stock I'd Buy Right Now
• Neutral Sentiment: Amazon is testing text-based shopping with Alexa for selected U.S. customers. The AI assistant can help find products, build carts and complete purchases; the feature could improve shopping convenience, though its impact on sales is not yet clear. Article: Amazon rolls out text-based shopping through Alexa
• Negative Sentiment: Spending and cash-flow concerns remain a near-term overhang. Despite record operating margins, investors are scrutinizing the cash required for Amazon’s AI and data-center buildout. Its latest quarterly EPS and revenue also came in slightly below consensus estimates. Article: Amazon Just Delivered a Record-Breaking Quarter. But There’s One Number Investors Shouldn’t Ignore
• Negative Sentiment: Potential data-center rules could raise costs. Midterm election results have increased attention on restrictions that could require Amazon and other tech companies to pay more of the power and grid costs associated with their data centers, potentially complicating expansion plans. Article: Microsoft and Google Face a New Bill as Data Centers Have to Pay Their Own Costs

Amazon.com Price Performance

AMZN stock opened at $259.30 on Monday. Amazon.com, Inc. has a 12-month low of $196.00 and a 12-month high of $287.20. The company has a quick ratio of 0.82, a current ratio of 0.99 and a debt-to-equity ratio of 0.28. The company has a market cap of $2.80 trillion, a price-to-earnings ratio of 20.96, a PEG ratio of 1.97 and a beta of 1.49. The company has a 50 day moving average of $253.96 and a two-hundred day moving average of $243.57.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its earnings results on Thursday, October 29th. The e-commerce giant reported $1.89 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.97 by ($0.08). Amazon.com had a net margin of 16.90% and a return on equity of 15.72%. The company had revenue of $201.94 billion for the quarter, compared to analyst estimates of $202.22 billion. During the same period last year, the business earned $1.95 EPS. The company's quarterly revenue was up 12.1% on a year-over-year basis. On average, equities analysts anticipate that Amazon.com, Inc. will post 7.80 earnings per share for the current fiscal year.

Insider Activity

In other Amazon.com news, CEO Douglas Herrington sold 1,000 shares of the business's stock in a transaction dated Monday, November 2nd. The stock was sold at an average price of $243.47, for a total value of $243,470.00. Following the transaction, the chief executive officer owned 473,681 shares in the company, valued at $115,327,113.07. The trade was a 0.21% 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, SVP David Zapolsky sold 9,258 shares of the company's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $259.77, for a total value of $2,404,950.66. Following the completion of the transaction, the senior vice president directly owned 41,190 shares in the company, valued at approximately $10,699,926.30. The trade was a 18.35% decrease in their ownership of the stock. 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. In the last quarter, insiders have sold 71,589 shares of company stock valued at $18,545,595. 8.90% of the stock is currently owned by company insiders.

Amazon.com Company Profile

Amazon.com, Inc is a technology and e-commerce company founded by Jeff Bezos in 1994 as an online bookstore. It has since grown into a global business serving consumers, sellers, developers, enterprises and content creators.

Amazon operates online stores and marketplaces, where it sells products directly and enables third-party sellers to reach customers. Its other businesses include Amazon Web Services, which provides cloud computing and related services; digital advertising; Prime memberships; and entertainment offerings such as streaming video and music.

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