Amazon's Institutional Support Grows Amid Valuation Concerns
According to recent filings with the Securities and Exchange Commission (SEC), Empowered Funds LLC significantly increased its holdings in Amazon.com, Inc. (NASDAQ:AMZN) by 43% in the first quarter. The firm now owns approximately 1.033 million shares of Amazon's stock, valued at $215.25 million. This represents about 1.4% of Empowered Funds' total holdings and makes Amazon its sixth largest position.
Amazon is not the only institution to increase its stake in the e-commerce giant. Gryphon Financial Partners LLC boosted its position by 7.5%, while First Citizens Bank & Trust Co. increased its holding by 1.7%. Narwhal Capital Management, Arrowstreet Capital Limited Partnership, and Weaver Capital Management LLC also added to their Amazon shares.
Despite these institutional purchases, some analysts remain cautious about Amazon's valuation. With a forward earnings multiple higher than its trailing multiple, the stock may be due for a correction if earnings growth does not materialize as expected.