Next Capital Management LLC Makes New Investment in Amazon.com, Inc. $AMZN

Key Points

• Next Capital Management LLC purchased 30,407 Amazon shares worth approximately $7.25 million in the second quarter, making Amazon about 2% of its portfolio. Institutional investors collectively own 72.2% of the stock.
• Amazon reported strong quarterly results, with revenue rising 19.6% year over year to $200.61 billion and earnings of $5.75 per share, well above estimates. Analysts maintain a broadly positive view, with a consensus “Moderate Buy” rating and a $323.26 price target.
• Amazon insiders sold 71,589 shares worth approximately $18.6 million over the past quarter, including sales by executives David Zapolsky and Douglas Herrington under pre-arranged trading plans. The company also faces operational and legal risks related to a fatal Amazon Air crash and an alleged workplace-discrimination lawsuit.

Next Capital Management LLC purchased a new stake in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 30,407 shares of the e-commerce giant's stock, valued at approximately $7,247,000. Amazon.com makes up approximately 2.0% of Next Capital Management LLC's holdings, making the stock its 15th largest position.

Other large investors have also modified their holdings of the company. Trust Asset Management LLC increased its stake in Amazon.com by 3.3% in the 2nd quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant's stock worth $26,000 after purchasing an additional 3,414 shares in the last quarter. MilWealth Group LLC boosted its holdings 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 buying an additional 79 shares during the period. Lifetime Wealth Management P.C. acquired a new position in shares of Amazon.com in the fourth quarter worth about $45,000. Elkhorn Partners Limited Partnership increased its position in shares of Amazon.com by 900.0% in the fourth quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant's stock worth $46,000 after acquiring an additional 180 shares in the last quarter. Finally, Fairway Wealth LLC increased its position in shares of Amazon.com by 95.6% in the fourth quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant's stock worth $51,000 after acquiring an additional 108 shares in the last quarter. 72.20% of the stock is owned by institutional investors.

Insider Activity at Amazon.com

In other news, SVP David Zapolsky sold 9,258 shares of the firm's stock in a transaction on 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 transaction, the senior vice president owned 41,190 shares in the company, valued at approximately $10,699,926.30. This trade represents a 18.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas Herrington sold 6,362 shares of Amazon.com stock in a transaction on 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 directly 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. 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. Insiders have sold a total of 71,589 shares of company stock worth $18,568,785 over the last quarter. 8.90% of the stock is currently owned by corporate insiders.

Amazon.com News Roundup

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

• Positive Sentiment: AWS expands its custom-chip strategy. Amazon and Qualcomm announced a multi-generation collaboration to develop customized AI data-center silicon, initially focused on AWS inference, along with optical-connectivity solutions of up to 1.6T. The agreement diversifies Amazon’s supply chain beyond Nvidia, Broadcom and its internally developed Trainium chips, while supporting AWS’s long-term AI infrastructure buildout. Qualcomm Announces Multi-Generational Product Collaboration with Amazon
• Positive Sentiment: Profitability remains a key investment argument. Commentary highlighted AWS’s roughly 39% operating margin and recent acceleration in cloud growth as reasons investors may view Amazon’s valuation as attractive, particularly with the stock trading near its 50-day moving average and below its recent high. Amazon’s AWS Operating Margin
• Neutral Sentiment: Amazon is preparing a sterling bond offering. The company has hired banks for its first sterling-denominated bond sale, apparently seeking additional funding sources for major AI and infrastructure investments. The move may improve financing flexibility, but it also underscores the scale of Amazon’s capital requirements. Amazon Hires Banks for First Sterling Bond Sale
• Negative Sentiment: Fatal Prime Air crash increases operational and reputational risk. Federal investigators are examining why a contractor-operated Boeing 767 cargo jet overshot the Miami runway by about 1,300 feet, killing five people. The investigation could bring additional scrutiny to Amazon Air’s contractor oversight, logistics practices and potential liability. Investigators Probe Amazon Cargo Plane Crash
• Negative Sentiment: Employment lawsuit adds legal and regulatory uncertainty. Four former warehouse workers allege Amazon discriminated against pregnant employees by penalizing medically necessary breaks and absences. The class-action complaint could create litigation costs and renewed scrutiny of warehouse labor policies. Amazon Sued for Allegedly Discriminating Against Pregnant Workers

Analysts Set New Price Targets

AMZN has been the topic of a number of recent analyst reports. Rosenblatt Securities began coverage on shares of Amazon.com in a report on Thursday, August 20th. They set a "buy" rating and a $335.00 price target on the stock. Roth Capital reiterated a "buy" rating and set a $325.00 price objective on shares of Amazon.com in a research report on Monday, August 3rd. Truist Financial boosted their target price on shares of Amazon.com from $320.00 to $350.00 and gave the company a "buy" rating in a research note on Friday, July 31st. BMO Capital Markets restated an "outperform" rating and issued a $360.00 target price (up from $355.00) on shares of Amazon.com in a report on Tuesday, July 28th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Amazon.com in a research report on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $323.26.

Amazon.com Trading Down 0.6%

Shares of NASDAQ AMZN opened at $256.97 on Wednesday. The business has a 50 day simple moving average of $254.88 and a 200 day simple moving average of $243.41. Amazon.com, Inc. has a 52 week low of $196.00 and a 52 week high of $287.20. The stock has a market cap of $2.77 trillion, a price-to-earnings ratio of 20.67, a PEG ratio of 1.99 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 (NASDAQ:AMZN - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating the consensus estimate of $1.82 by $3.93. The firm had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company's revenue for the quarter was up 19.6% on a year-over-year basis. During the same quarter last year, the firm earned $1.68 earnings per share. On average, research analysts predict that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.

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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