Professional Advisory Services Inc. Sells 8,710 Shares of Amazon.com, Inc. $AMZN

Key Points

• Professional Advisory Services Inc. cut its Amazon stake by 5.7%, selling 8,710 shares and retaining 144,964 shares valued at approximately $34.6 million. Amazon remains the fund’s third-largest holding, while institutional investors collectively own 72.2% of the stock.
• Amazon reported strong quarterly results, with $200.61 billion in revenue and $5.75 in EPS, both exceeding analyst expectations; revenue increased 19.6% year over year. AWS and AI growth, including a reported $25 billion annualized AI revenue run rate, are key drivers.
• Analysts maintain a bullish outlook, with a consensus “Moderate Buy” rating and a $322.56 price target. However, heavy AI and data-center spending could pressure free cash flow, while CEO Douglas Herrington’s relatively small Rule 10b5-1 sale was a limited bearish signal.

Professional Advisory Services Inc. reduced its holdings in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 5.7% during the second quarter, according to the company in its most recent filing with the SEC. The fund owned 144,964 shares of the e-commerce giant's stock after selling 8,710 shares during the quarter. Amazon.com makes up 4.1% of Professional Advisory Services Inc.'s portfolio, making the stock its 3rd biggest position. Professional Advisory Services Inc.'s holdings in Amazon.com were worth $34,551,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of AMZN. Puff Wealth Management LLC bought a new stake in shares of Amazon.com during the 2nd quarter valued at about $2,656,000. OFS Enterprise LLC raised its stake in Amazon.com by 17.9% during the second quarter. OFS Enterprise LLC now owns 6,120 shares of the e-commerce giant's stock worth $1,459,000 after acquiring an additional 928 shares during the period. LifeGoal Investments LLC lifted its holdings in Amazon.com by 38.6% in the second quarter. LifeGoal Investments LLC now owns 9,993 shares of the e-commerce giant's stock worth $2,382,000 after acquiring an additional 2,785 shares during the last quarter. Wynn Capital LLC lifted its holdings in Amazon.com by 3.5% in the second quarter. Wynn Capital LLC now owns 14,631 shares of the e-commerce giant's stock worth $3,487,000 after acquiring an additional 488 shares during the last quarter. Finally, Meriwether Wealth & Planning LLC boosted its stake in Amazon.com by 3.6% in the second quarter. Meriwether Wealth & Planning LLC now owns 12,207 shares of the e-commerce giant's stock valued at $2,909,000 after acquiring an additional 428 shares during the period. 72.20% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Amazon.com

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

• Positive Sentiment: Prime Air expansion: Amazon plans to expand drone delivery to nearly 500 U.S. cities and towns by the end of 2026, roughly six times its current footprint. Deliveries could arrive in as little as 30 minutes for packages weighing up to five pounds. The move reinforces Amazon’s delivery advantage and supports efforts to compete with Walmart, FedEx and other logistics providers. Amazon to expand drone service to nearly 500 cities
• Positive Sentiment: AWS and AI momentum: AWS revenue reportedly grew 37% year over year to $42.2 billion in the latest quarter, its fastest growth in 18 quarters. Amazon also said its AWS AI business surpassed a $25 billion annualized revenue run rate, strengthening the case that AI workloads are accelerating cloud growth and could improve long-term earnings. Amazon's AI business passed a $25 billion run rate
• Positive Sentiment: Infrastructure investment: Amazon increased its planned investment in a northwest Louisiana data-center campus from $12 billion to approximately $18 billion, signaling sustained demand for AWS capacity and allowing the company to secure power and water infrastructure in advance of regional grid constraints. Amazon Plugs $18B Into the Southern Power Grid
• Positive Sentiment: Analyst support: Wall Street’s average price target implies substantial potential upside, with analysts citing improving earnings estimates and AWS reacceleration. Wall Street analysts think Amazon could surge
• Neutral Sentiment: Alexa+ availability: Amazon made its AI-powered Alexa+ available at no additional cost to Fire TV users without requiring Prime membership. The broader user base could support future engagement and monetization, although the immediate financial impact is unclear. Amazon makes Alexa+ free on Fire TV
• Negative Sentiment: Capital-spending risks: The rapid data-center and AI buildout may pressure free cash flow, depreciation and returns. AWS also faces rising competition from other cloud providers and specialized AI infrastructure companies.
• Negative Sentiment: Insider transaction: CEO Douglas Herrington sold 3,741 shares worth approximately $983,000 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only 0.79%, making it a limited bearish signal. SEC insider transaction filing

Amazon.com Stock Performance

Shares of NASDAQ AMZN opened at $265.84 on Thursday. Amazon.com, Inc. has a 12-month low of $196.00 and a 12-month high of $287.20. The company has a market cap of $2.87 trillion, a PE ratio of 21.39, a P/E/G ratio of 1.73 and a beta of 1.45. The stock has a 50 day simple moving average of $249.09 and a 200-day simple moving average of $239.06. 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 posted 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. The firm had revenue of $200.61 billion for the quarter, compared to analysts' expectations of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The firm's revenue was up 19.6% compared to the same quarter last year. During the same period last year, the firm earned $1.68 EPS. On average, equities research analysts forecast that Amazon.com, Inc. will post 8.05 EPS for the current year.

Analyst Ratings Changes

Several research firms have recently commented on AMZN. Needham & Company LLC reaffirmed a "buy" rating and set a $300.00 target price on shares of Amazon.com in a report on Friday, July 31st. BNP Paribas Exane boosted their price objective on Amazon.com from $320.00 to $345.00 and gave the company an "outperform" rating in a research report on Tuesday, May 5th. TD Cowen restated a "buy" rating and set a $350.00 price objective (up from $340.00) on shares of Amazon.com in a research note on Friday, July 31st. Robert W. Baird set a $310.00 price objective on Amazon.com and gave the stock an "outperform" rating in a research note on Friday, July 31st. Finally, China Renaissance increased their target price on Amazon.com from $300.00 to $326.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. One investment 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 company's stock. According to data from MarketBeat, Amazon.com presently has a consensus rating of "Moderate Buy" and a consensus price target of $322.56.

Insider Buying and Selling at Amazon.com

In related news, CEO Douglas J. Herrington sold 3,741 shares of the company's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $262.76, for a total value of $982,985.16. Following the completion of the sale, the chief executive officer owned 467,138 shares of the company's stock, valued at $122,745,180.88. This represents a 0.79% decrease in their ownership of the stock. The transaction 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 9,270 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the completion of the transaction, the senior vice president owned 41,190 shares of the company's stock, valued at $11,060,750.70. This represents a 18.37% 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 three months, insiders sold 16,011 shares of company stock valued at $4,256,608. Company insiders own 8.90% of the company's stock.

About Amazon.com

Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.

Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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