Stocks
Diamond Hill Trims Amazon Stake Amid Strong Performance
Diamond Hill Capital Management Inc., managed by Ric Dillon, has reduced its stake in Amazon.Com, Inc. (AMZN) significantly. The hedge fund sold 307,695 shares of the tech giant.
The move is notable given the strong performance of Amazon's stock this year, with a year-to-date price increase of 17.66%. This growth can be attributed to improving profitability and returns, as well as strong trend strength versus major moving averages.
Spark's AI Analyst rates AMZN as an 'Outperform', citing AWS/AI acceleration and large backlog visibility in the company's earnings call. However, the score is tempered by negative TTM free cash flow and management's raised CapEx plan, which can keep cash generation and margins volatile near term.