Three Arch Wealth Management LLC Buys New Position in Amazon.com, Inc. $AMZN

Key Points

• Three Arch Wealth Management initiated a 7,534-share Amazon position worth approximately $1.8 million in the second quarter, making Amazon its eighth-largest holding. Institutional investors collectively own 72.2% of the company.
• Amazon reported a strong quarter, with $5.75 in adjusted EPS versus the $1.82 consensus and revenue of $200.61 billion, up 19.6% year over year. Analysts maintain a broadly bullish outlook, with a “Moderate Buy” consensus and an average price target of $323.26.
• Despite positive AI and AWS expansion opportunities, insiders sold $18.6 million of stock during the last quarter, while investors remain concerned about heavy AI infrastructure spending, potential negative free cash flow, financing costs and data-center tax risks.

Three Arch Wealth Management LLC bought a new stake in shares of Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 7,534 shares of the e-commerce giant's stock, valued at approximately $1,796,000. Amazon.com accounts for about 0.3% of Three Arch Wealth Management LLC's investment portfolio, making the stock its 8th biggest holding.

Several other hedge funds have also recently added to or reduced their stakes in the company. MilWealth Group LLC lifted its holdings in Amazon.com by 79.0% in the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant's stock valued at $41,000 after buying an additional 79 shares during the period. Lifetime Wealth Management P.C. bought a new stake in Amazon.com during the fourth quarter valued at $45,000. Elkhorn Partners Limited Partnership grew its holdings in Amazon.com by 900.0% during the 4th 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 during the period. Fairway Wealth LLC grew its holdings in Amazon.com by 95.6% during the 4th quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant's stock worth $51,000 after acquiring an additional 108 shares during the period. Finally, Prudent Man Investment Management Inc. raised its position in shares of Amazon.com by 87.7% in the 4th quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant's stock worth $53,000 after acquiring an additional 107 shares in the last quarter. Institutional investors own 72.20% of the company's stock.

Amazon.com Stock Down 0.2%

Shares of NASDAQ:AMZN opened at $251.89 on Friday. The business's 50 day simple moving average is $255.28 and its two-hundred day simple moving average is $244.04. The firm has a market cap of $2.72 trillion, a P/E ratio of 20.26, a PEG ratio of 1.95 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 52-week low of $196.00 and a 52-week high of $287.20.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, beating analysts' consensus estimates of $1.82 by $3.93. The firm had revenue of $200.61 billion during 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 company's revenue for the quarter was up 19.6% compared to the same quarter last year. During the same quarter last year, the firm posted $1.68 earnings per share. As a group, research analysts forecast that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Andrew Jassy sold 20,000 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 value of $5,180,200.00. Following the completion of the sale, the chief executive officer owned 2,235,766 shares of the company's stock, valued at approximately $579,085,751.66. This trade represents a 0.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed 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 business'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 sale, the senior vice president owned 41,190 shares of the company's stock, valued at $10,699,926.30. This trade represents a 18.35% 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 71,589 shares of company stock worth $18,568,785 over the last quarter. Corporate insiders own 8.90% of the company's stock.

Wall Street Analyst Weigh In

AMZN has been the topic of a number of recent analyst reports. Cantor Fitzgerald reissued an "overweight" rating and issued a $320.00 price objective (down from $330.00) on shares of Amazon.com in a research note on Friday, July 31st. Citigroup reiterated a "market outperform" rating on shares of Amazon.com in a report on Friday, August 14th. KeyCorp boosted their price target on Amazon.com from $335.00 to $350.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. Jefferies Financial Group restated a "buy" rating on shares of Amazon.com in a report on Thursday, June 18th. Finally, TD Cowen reaffirmed a "buy" rating and set a $350.00 price objective (up from $340.00) on shares of Amazon.com in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $323.26.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Amazon agreed to purchase up to $60 billion of Qualcomm’s custom data-center chips through 2036, diversifying AWS’s AI hardware supply beyond Nvidia and potentially improving infrastructure flexibility. The deal also reinforces expectations for continued AWS expansion. Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal
• Positive Sentiment: Amazon is expanding its Quick AI assistant to iPhone and Android, adding a feed that prioritizes email, Slack, calendar and CRM updates. The move strengthens its enterprise AI offering against Microsoft and Google. Amazon expands its Quick AI assistant on mobile
• Positive Sentiment: New Prime Video shopping tools will let viewers discover products through X-Ray features, creating another potential advertising and commerce channel. Amazon is also allowing selected brands to advertise inside ChatGPT through a partnership with OpenAI. Amazon makes it easier to buy what you see on Prime Video
• Positive Sentiment: Amazon plans to invest more than $230 million in Whole Foods employee pay and benefits, while six additional Ariane 6 launches support the company’s Leo satellite-broadband expansion. These investments broaden Amazon’s retail and infrastructure growth opportunities. Amazon's Whole Foods Market Plans Over $230 Million for Worker Pay, Benefits
• Neutral Sentiment: Amazon added cybersecurity executive Kevin Mandia to its board, bringing expertise from Mandiant and Google. The appointment is strategically relevant but unlikely to materially affect near-term earnings. Amazon adds cybersecurity veteran Kevin Mandia to board
• Negative Sentiment: Investors remain concerned about Amazon’s roughly $220 billion in 2026 capital expenditures and its first sterling bond offering to help fund AI infrastructure. Higher interest rates, negative free cash flow and uncertain returns could pressure valuation. Amazon starts selling first sterling bonds
• Negative Sentiment: Potential changes to Ohio data-center tax incentives could raise the cost of Amazon’s planned nearly $40 billion AI buildout. Separately, a lawsuit alleging violations of the Pregnant Workers Fairness Act adds legal and reputational risk. Amazon's $40 billion Ohio AI bet faces a tax shock

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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