Amazon.com Valuation Hits New Heights Amid Concerns Over Capital Expenditure Outlook

Bowen Hanes & Co. Inc., a financial institution, has reduced its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 93.5% during the first quarter of this year. According to their most recent SEC filing, they now own 18,974 shares of the e-commerce giant's stock, which are valued at $3.95 million.

This significant reduction in Amazon.com holdings is not an isolated incident. Other hedge funds and institutional investors have been actively buying or selling the company's shares over the past few quarters. For example, Norges Bank acquired a new stake worth approximately $32.87 billion during the fourth quarter.

The market capitalization of Amazon.com has reached an astonishing $2.94 trillion, making it one of the largest publicly traded companies in the world. The e-commerce giant's revenue for the second quarter was a record-breaking $200.61 billion, up 19.6% from the same period last year.

The company's financials are not without controversy, however. Amazon.com raised its capital expenditure outlook to over $220 billion by 2026, citing increased memory costs and intense AI infrastructure demand. This move has sparked concerns among investors about the potential impact on free cash flow if cloud monetization slows down.