Smithbridge Asset Management Inc. DE Lowers Stake in Amazon.com, Inc. $AMZN

Key Points

• Smithbridge Asset Management cut its Amazon stake by 5.7% in the second quarter, selling 3,918 shares and retaining 64,228 shares valued at approximately $15.3 million. Amazon remains 2.1% of the fund’s portfolio, while institutional investors own 72.2% of AMZN.
• Amazon reported a strong quarter, with earnings of $5.75 per share and revenue of $200.61 billion, exceeding analyst expectations; revenue rose 19.6% year over year. Wall Street maintains a “Moderate Buy” consensus with an average price target of $322.39.
• Amazon’s AI and AWS expansion remains a key growth catalyst, but heavy infrastructure spending is pressuring free cash flow. Recent insider sales totaled about $18.6 million last quarter, though the disclosed transactions were conducted under pre-arranged Rule 10b5-1 plans.

Smithbridge Asset Management Inc. DE reduced its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 5.7% in the second quarter, according to its most recent filing with the SEC. The fund owned 64,228 shares of the e-commerce giant's stock after selling 3,918 shares during the period. Amazon.com makes up 2.1% of Smithbridge Asset Management Inc. DE's investment portfolio, making the stock its 14th biggest position. Smithbridge Asset Management Inc. DE's holdings in Amazon.com were worth $15,308,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently made changes to their positions in the stock. Gryphon Financial Partners LLC lifted its stake in Amazon.com by 7.5% in the first quarter. Gryphon Financial Partners LLC now owns 73,085 shares of the e-commerce giant's stock worth $15,221,000 after purchasing an additional 5,125 shares during the last quarter. First Citizens Bank & Trust Co. boosted its position in Amazon.com by 1.7% during the first quarter. First Citizens Bank & Trust Co. now owns 303,862 shares of the e-commerce giant's stock valued at $63,285,000 after buying an additional 5,104 shares during the period. Narwhal Capital Management grew its stake in shares of Amazon.com by 2.3% during the fourth quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant's stock valued at $49,997,000 after buying an additional 4,854 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of Amazon.com by 21.0% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 24,653,228 shares of the e-commerce giant's stock valued at $5,690,463,000 after buying an additional 4,275,942 shares during the last quarter. Finally, Blue Chip Partners LLC increased its holdings in shares of Amazon.com by 1.8% in the first quarter. Blue Chip Partners LLC now owns 147,461 shares of the e-commerce giant's stock worth $30,712,000 after buying an additional 2,583 shares during the period. 72.20% of the stock is owned by institutional investors.

Amazon.com Trading Down 0.3%

NASDAQ AMZN opened at $260.28 on Thursday. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. Amazon.com, Inc. has a twelve month low of $196.00 and a twelve month high of $287.20. The firm has a market capitalization of $2.81 trillion, a PE ratio of 20.94, a P/E/G ratio of 1.74 and a beta of 1.45. The stock's 50 day moving average is $250.94 and its 200 day moving average is $239.94.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.82 by $3.93. The business had revenue of $200.61 billion during the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The firm's quarterly revenue was up 19.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.68 earnings per share. Research analysts forecast that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on AMZN. Jefferies Financial Group restated a "buy" rating on shares of Amazon.com in a report on Thursday, June 18th. Roth Capital reiterated a "buy" rating and issued a $325.00 price objective on shares of Amazon.com in a research report on Monday, August 3rd. Evercore reissued an "outperform" rating on shares of Amazon.com in a research note on Tuesday, July 28th. Piper Sandler restated an "overweight" rating and issued a $320.00 target price (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Finally, Canaccord Genuity Group lifted their target price on shares of Amazon.com from $300.00 to $330.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $322.39.

Trending Headlines about Amazon.com

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

• Positive Sentiment: AWS expands its data-analytics offering. Amazon Web Services agreed to acquire DuckLabs, the team behind open-source DuckDB. The deal could strengthen AWS’s position in analytics and help attract developers and enterprise workloads, while DuckDB is expected to remain independent. Amazon DuckLabs acquisition
• Positive Sentiment: AI-related cloud demand remains a major catalyst. Amazon is reportedly negotiating with Moonshot AI to host its Kimi K3 model under a potential revenue-sharing arrangement. If completed, the agreement could add AI workloads to AWS, although U.S. scrutiny of Moonshot creates geopolitical and regulatory uncertainty. Reuters Moonshot AI article
• Positive Sentiment: Analysts and large investors remain optimistic. Citizens maintained a Market Outperform rating and a $315 price target, while several hedge funds and prominent investors, including Peter Thiel, David Tepper and Bill Ackman, have recently held or increased Amazon positions. These reports support the view that AMZN’s valuation and AWS growth remain attractive.
• Neutral Sentiment: Amazon is shutting down Mechanical Turk. The closure of the 21-year-old crowdsourcing platform on September 30 appears financially immaterial, but it signals continued portfolio streamlining as AI replaces some human-completed digital tasks. Mechanical Turk shutdown
• Negative Sentiment: AI spending is weighing on cash generation. AWS growth is reportedly accelerating, but infrastructure investment pushed trailing free cash flow backward by approximately $25.8 billion. Investors want evidence that massive data-center spending will translate into durable profits and improved cash flow. Amazon AWS free cash flow article
• Negative Sentiment: Executives sold more than $15 million of stock. CEO Andy Jassy, AWS CEO Matthew Garman, CFO Brian Olsavsky and other senior leaders reported sales. The trades were made under pre-arranged Rule 10b5-1 plans, reducing their significance, but the concentration of selling can still weigh on sentiment. Amazon insider selling article

Insider Activity

In related news, SVP David Zapolsky sold 9,258 shares of the business'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 sale, the senior vice president owned 41,190 shares of the company's stock, valued at $10,699,926.30. The trade was a 18.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,343 shares of the company's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $606,860.43. Following the completion of the sale, the vice president owned 119,780 shares in the company, valued at approximately $31,024,217.80. This trade represents a 1.92% 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. In the last quarter, insiders have sold 71,589 shares of company stock worth $18,580,205. 8.90% of the stock is currently owned by corporate insiders.

Amazon.com Profile

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.

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