Analysis of Amazon.com Stock Holdings and Market Implications

Key Facts and Data Points

• Sheaff Brock Investment Advisors LLC:

  • Reduced stake in Amazon by 0.6% during the 4th quarter.
  • Sold 627 shares, holding 105,208 shares after the reduction.
  • Amazon.com represents 2.0% of their portfolio, making it their 5th largest position.
  • Holdings worth $23,082,000 as of the latest SEC filing.

• Other Institutional Investors:

  • Accordant Advisory Group Inc: Increased stake by 400.0%, now owning 125 shares valued at $27,000.
  • Icon Wealth Advisors LLC: Boosted holdings by 20.5%, now owning 150,661 shares worth $28,000.
  • Bull Oak Capital LLC: Purchased new stake valued at $45,000 in the third quarter.
  • Quattro Financial Advisors LLC: Increased holdings by 23.8%, now owning 234 shares worth $51,000.
  • Values First Advisors Inc.: Acquired a new position worth $56,000 in the third quarter.

• Market Ownership:

  • 72.20% of Amazon stock is owned by hedge funds and institutional investors.

Stock Performance

• Amazon.com Stock Price:

  • Opened at $197.95 on Friday.
  • 1-year low: $151.61, 1-year high: $242.52.
  • 50-day moving average: $221.65, 200-day moving average: $207.50.

• Financial Ratios:

  • Debt-to-equity ratio: 0.18.
  • Current ratio: 1.06, Quick ratio: 0.87.
  • Market capitalization: $2.10 trillion.
  • Price-to-earnings (P/E) ratio: 35.80.
  • PEG ratio: 1.50.
  • Beta: 1.19.

Earnings and Analysts' Outlook

• Earnings Results:

  • Reported $1.86 EPS for the quarter, beating the consensus estimate of $1.52.
  • Return on equity: 24.25%, Net margin: 9.29%.

• Analysts' Forecast:

  • Consensus rating: "Moderate Buy" with a target price of $260.65.
  • Mizuho upgraded Amazon to "outperform" with a price target of $260.00.
  • JMP Securities reaffirmed "market outperform" with a price target of $285.00.
  • HSBC upgraded to "buy" with a price target of $270.00.
  • Loop Capital upgraded to "buy" with a price target of $285.00.

Insider Transactions

• Senior Vice President (SVP):

  • Sold 5,848 shares at an average price of $220.72, total value $1,290,770.56.
  • Ownership decreased by 7.80%, now owning 69,162 shares valued at $15,265,436.64.

• CEO Douglas J. Herrington:

  • Sold 27,500 shares at an average price of $230.27, total value $6,332,425.00.
  • Ownership decreased by 5.24%, now owning 497,067 shares valued at $114,459,618.09.

• Total Insider Sales:

  • Sold 102,298 shares worth $22,871,828 over the last quarter.
  • Insiders own 10.80% of the company’s stock.

Business Profile and Market Implications

• Amazon.com Segments:

  • North America
  • International
  • Amazon Web Services (AWS)

• Product Offerings:

  • Retail sale of consumer products, advertising, subscriptions.
  • Manufacture and sell electronic devices (Kindle, Fire tablets, Echo).
  • Develop and produce media content.

Strategic Considerations

• The reduction in stake by Sheaff Brock Investment Advisors LLC suggests potential repositioning of their portfolio, possibly due to market conditions or strategic shifts.
• The mixed actions of other institutional investors indicate varying confidence levels among stakeholders regarding Amazon's future performance.
• Insider sales, particularly by high-ranking executives, may signal concerns about overvaluation or strategic decisions within the company.

Market Trends and Competitive Dynamics

• Amazon's dominance in e-commerce and cloud services positions it as a key player in the tech sector. However, increased competition from other tech giants like Apple, Google, and Microsoft could impact its market share.
• The stock's volatility, indicated by a beta of 1.19, suggests higher-than-average risk compared to the broader market.

Long-Term Effects and Regulatory Impacts

• Amazon's expansion into areas like AI, quantum computing, and sustainability initiatives could drive long-term growth but also attract regulatory scrutiny.
• Potential regulatory changes, particularly in antitrust and data privacy, pose risks to Amazon's business model.

Conclusion

Amazon.com remains a critical player in the global tech and e-commerce landscape. While institutional shifts and insider sales raise questions about investor sentiment, the company's strong financial performance and strategic initiatives position it for continued growth. Analysts' optimistic outlook underscores potential upside, but investors should remain cautious of market volatility and regulatory developments.