Ameritas Raises Amazon Stake by 78% Amid Strong Institutional Support
Ameritas Advisory Services LLC significantly increased its stake in Amazon.com, Inc. (NASDAQ: AMZN) by 78% during the second quarter, according to its latest SEC filing. The institutional investor now holds 144,432 shares of the e-commerce giant, valued at $34.4 million. Several other institutional investors also adjusted their positions in Amazon, with Silvant Capital Management LLC acquiring a new stake worth $60.1 million and the Public Employees Retirement System of Ohio investing approximately $910 million.
Positive sentiment surrounding Amazon continues to build, with TD Cowen reaffirming its Buy rating and raising its price target to $350. Analysts highlight Amazon’s relatively low 20-times earnings valuation as a historically attractive entry point. Additionally, Amazon’s cloud division, AWS, is expanding its AI capabilities by hiring a former Microsoft Copilot executive, signaling strong investment in AI infrastructure. The company also secured a multiyear, $1 billion-plus agreement with Synopsys to strengthen its custom-chip strategy, which could reduce reliance on Nvidia and improve AWS infrastructure economics.
Despite these positive developments, some concerns remain. Amazon is reportedly considering a complex financing structure for $8 billion worth of Nvidia chips, which could improve capital flexibility but also highlights the significant spending required for AI infrastructure. Investors are also watching CEO Douglas Herrington’s recent sale of 1,000 shares under a pre-arranged trading plan, though the transaction was small relative to his total holdings. Analysts maintain a consensus rating of Moderate Buy for Amazon, with an average price target of $321.63.
Shares of Amazon opened at $251.40, with a market capitalization of $2.71 trillion and a P/E ratio of 20.23. The company reported strong earnings for the second quarter, exceeding expectations with $5.75 earnings per share and revenue of $200.61 billion, up 19.6% year-over-year. Analysts anticipate Amazon will post $8.01 earnings per share for the current year.