L.M. Kohn & Company has significantly reduced its stake in Amazon.com, Inc. (NASDAQ: AMZN) by selling 64,592 shares, marking an 83% decrease in its holdings during the third quarter. This decision leaves the firm with 13,244 shares, which now represent 3.5% of its total portfolio, making Amazon its fourth-largest position. As of the latest filing with the Securities and Exchange Commission (SEC), these shares are valued at approximately $2.9 million.
Several other large investors have also adjusted their positions in Amazon. Brighton Jones LLC increased its stake by 10.9% in the fourth quarter, owning 4,036,091 shares worth about $885.5 million after acquiring 397,007 additional shares. Similarly, Revolve Wealth Partners LLC raised its holdings by 4.1%, now possessing 25,045 shares valued at $5.5 million.
Bank Pictet & Cie Europe AG reported a 2.8% increase in its position, owning 2,016,869 shares worth $442.5 million. Highview Capital Management LLC DE also boosted its stake by 5.5%, bringing its total to 28,975 shares valued at $6.4 million. Liberty Square Wealth Partners LLC made a new investment in Amazon, acquiring shares worth approximately $2.15 million. Overall, institutional investors now hold 72.2% of Amazon’s stock.
In related news, CEO Douglas J. Herrington sold 4,784 shares of Amazon on February 17, 2024, at an average price of $198.37, totaling about $949,002. Following this transaction, his remaining shares are valued at approximately $101.6 million, reflecting a 0.93% decrease in his ownership. In the past 90 days, insiders have sold a total of 8,284 shares worth $1.74 million, with company insiders owning 9.7% of the stock.
Several analysts have recently revised their ratings for Amazon. Wall Street Zen downgraded the stock from a “buy” to a “hold” rating. New Street Research reduced their target price from $350.00 to $285.00, while Rothschild & Co Redburn set a target of $230.00. Canaccord Genuity Group maintained a “buy” rating with a target of $300.00, and the Royal Bank of Canada reiterated an “outperform” rating with the same price objective. According to data from MarketBeat.com, Amazon has a consensus rating of “Moderate Buy” with an average target price of $287.30.
On February 5, 2024, Amazon announced its quarterly earnings, reporting earnings per share (EPS) of $1.95, slightly missing analysts’ estimates of $1.97. The company’s revenue for the quarter was $213.39 billion, surpassing the forecast of $211.02 billion. Amazon’s net margin stood at 10.83%, with a return on equity of 21.87%. Compared to the same quarter last year, revenue increased by 13.6%.
In recent developments affecting Amazon’s market position, positive sentiments have emerged from several factors. A Supreme Court ruling against tariffs has eased operational challenges, benefiting e-commerce platforms, including Amazon. Additionally, strong demand for cloud services indicates that companies like Anthropic may invest significantly in cloud infrastructure, which could enhance Amazon Web Services’ revenue outlook.
Despite these positives, some challenges loom. Reports of outages linked to Amazon’s internal AI tools have raised concerns regarding operational reliability. Moreover, analysts have noted that Amazon’s planned $200 billion capital expenditure for AI and data centers may pressure near-term cash flow and valuations. The Washington Supreme Court’s ruling allowing families to sue Amazon over sodium nitrite sales introduces further legal risks, potentially impacting investor sentiment.
Founded in 1994 by Jeff Bezos and headquartered in Seattle, Washington, Amazon.com, Inc. has evolved from an online bookseller into a diversified technology and retail powerhouse. Its key offerings include a vast e-commerce marketplace, cloud computing services through Amazon Web Services (AWS), and a range of digital media and advertising solutions.
