Zhang Financial LLC Buys 9,727 Shares of Amazon.com, Inc. $AMZN

Key Points

• Zhang Financial increased its Amazon stake by 13.8% in the first quarter, buying 9,727 shares to hold 80,336 shares valued at approximately $16.7 million. Institutional investors collectively own 72.2% of Amazon’s stock.
• Amazon reported a strong quarter, with revenue rising 19.6% year over year to $200.6 billion and EPS of $5.75 versus the $1.82 consensus estimate. AWS growth accelerated 37% to $42.2 billion, supported by rising enterprise AI demand.
• Analysts maintain a favorable outlook, with 56 Buy ratings, three Holds and a consensus price target of $322.12. However, Amazon’s planned $220 billion in 2026 capital spending and below-consensus third-quarter revenue guidance remain key risks.

Zhang Financial LLC grew its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 13.8% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 80,336 shares of the e-commerce giant's stock after purchasing an additional 9,727 shares during the quarter. Zhang Financial LLC's holdings in Amazon.com were worth $16,732,000 at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in the stock. MilWealth Group LLC grew its holdings in Amazon.com by 79.0% in the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant's stock worth $41,000 after acquiring an additional 79 shares during the last quarter. Lifetime Wealth Management P.C. purchased a new position in shares of Amazon.com in the fourth quarter valued at about $45,000. Elkhorn Partners Limited Partnership raised its stake in shares of Amazon.com by 900.0% during the fourth quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant's stock valued at $46,000 after acquiring an additional 180 shares during the last quarter. Fairway Wealth LLC boosted its holdings in shares of Amazon.com by 95.6% during the fourth quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant's stock worth $51,000 after purchasing an additional 108 shares during the period. Finally, Prudent Man Investment Management Inc. boosted its holdings in shares of Amazon.com by 87.7% during the fourth quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant's stock worth $53,000 after purchasing an additional 107 shares during the period. Hedge funds and other institutional investors own 72.20% of the company's stock.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Amazon reported record quarterly sales of $200.6 billion, up nearly 20% year over year, while earnings per share of $5.75 significantly exceeded the $1.82 consensus estimate. Operating income rose 43% to $27.5 billion. Amazon second-quarter results
• Positive Sentiment: AWS revenue accelerated 37% to $42.2 billion—its fastest growth in 18 quarters—beating expectations as enterprise AI demand strengthened. The result helped ease concerns that Amazon’s massive AI infrastructure investments would not produce adequate returns. Amazon AWS growth
• Positive Sentiment: Advertising revenue climbed 26% to approximately $19.8 billion, while stronger e-commerce activity and robotics-supported fulfillment added to the broad-based quarterly beat.
• Positive Sentiment: Multiple firms raised their price targets following the results, including JPMorgan to $365, Benchmark to $400, Truist to $350, and RBC to $330. Analysts cited accelerating AWS growth, AI monetization and margin potential. Amazon analyst price targets
• Positive Sentiment: Amazon completed the remaining $35 billion of its planned OpenAI investment, bringing its total commitment to $50 billion. The partnership could support future AWS demand, although it also increases capital commitments. Amazon OpenAI investment
• Neutral Sentiment: Amazon raised its 2026 capital-spending outlook to $220 billion to expand AI and cloud capacity. Management sees demand extending into 2028, but the scale of spending will keep free cash flow and funding requirements under scrutiny.
• Neutral Sentiment: The company expects third-quarter revenue of $197 billion to $202 billion, below the roughly $204.6 billion analyst consensus, creating a potential near-term headwind despite the strong quarter.
• Negative Sentiment: Amazon faces consumer lawsuits alleging misleading seafood sustainability claims and the sale of protein powder allegedly contaminated with heavy metals. The cases could create legal, reputational and compliance costs, though their financial impact is currently unclear. Amazon consumer lawsuit

Analysts Set New Price Targets

A number of brokerages recently issued reports on AMZN. Royal Bank Of Canada boosted their price target on Amazon.com from $320.00 to $330.00 and gave the company an "outperform" rating in a report on Friday. Wolfe Research reiterated an "outperform" rating and issued a $315.00 price objective on shares of Amazon.com in a report on Friday. William Blair reiterated an "outperform" rating on shares of Amazon.com in a research report on Thursday, April 9th. BNP Paribas Exane boosted their target price on Amazon.com from $320.00 to $345.00 and gave the company an "outperform" rating in a research note on Tuesday, May 5th. Finally, DZ Bank upped their target price on Amazon.com from $295.00 to $320.00 and gave the company a "buy" rating in a report on Monday, May 4th. Fifty-six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $322.12.

Amazon.com Stock Performance

Shares of AMZN opened at $271.58 on Friday. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01. Amazon.com, Inc. has a one year low of $196.00 and a one year high of $278.56. The company has a 50-day simple moving average of $245.70 and a two-hundred day simple moving average of $236.22. The firm has a market capitalization of $2.92 trillion, a PE ratio of 21.85, a price-to-earnings-growth ratio of 1.75 and a beta of 1.46.

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 for the quarter, beating the consensus estimate of $1.82 by $3.93. Amazon.com had a return on equity of 19.59% and a net margin of 17.44%.The business had revenue of $200.61 billion for the quarter, compared to analysts' expectations of $197.03 billion. During the same period in the previous year, the firm posted $1.68 EPS. The business's revenue was up 19.6% on a year-over-year basis. On average, analysts anticipate that Amazon.com, Inc. will post 7.84 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Douglas J. Herrington sold 27,500 shares of Amazon.com stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $275.00, for a total transaction of $7,562,500.00. Following the sale, the chief executive officer directly owned 471,361 shares in the company, valued at $129,624,275. The trade was a 5.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the company's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $262.38, for a total value of $620,003.94. Following the completion of the sale, the vice president directly owned 119,780 shares in the company, valued at approximately $31,427,876.40. The trade was a 1.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 135,719 shares of company stock worth $36,438,002 over the last quarter. 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.

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