Major Funds Increase Amazon Holdings Amid Strong Buy Rating

While U.S. markets are closed for a holiday, fresh regulatory filings concerning Amazon have provided new talking points. Several prominent asset managers significantly boosted their stakes in the e-commerce giant during the third quarter. This institutional accumulation coincides with a new research report labeling the stock a "Strong Buy," creating a notable contrast with ongoing insider selling activity.

The bullish case for Amazon shares received reinforcement from RI Research, which published a new analysis on Seeking Alpha issuing a "Strong Buy" recommendation. The report contends the stock is fundamentally undervalued relative to its long-term prospects, projecting a forward price-to-earnings ratio below 20 for the fiscal year 2028. Key growth catalysts identified include:
* A rapidly expanding digital advertising business, reportedly growing faster than those of rivals Google and Meta.
* The ongoing development of its cloud gaming service, Luna.
* Progress in autonomous mobility through its subsidiary, Zoox.

This optimism is underpinned by solid financials. Amazon's third-quarter results surpassed expectations, with earnings per share reaching $1.95 against a forecast of $1.57. Revenue for the period hit $180.17 billion.

Institutional Positioning Shifts

According to recent data, institutional investors collectively control approximately 72.2% of Amazon's outstanding shares. Notable portfolio adjustments within this group in Q3 included:
* Independence Bank of Kentucky raised its holding by 2.6%, acquiring 87,730 shares valued at about $19.26 million.
* Secure Asset Management LLC increased its position by 13.4% to 30,098 shares (approx. $6.64 million).
* Signal Advisors Wealth LLC executed a substantial 28.6% build-up, adding 15,682 shares for a new total of 70,421.
* Perpetual Ltd grew its stake by 8.9%, now holding 317,736 shares worth nearly $69.77 million.
* Jackson Square Capital was a notable exception, trimming its position by 5.4% through the sale of roughly 4,400 shares.

Valuation, Insider Sales, and Operational Headwinds

Amazon's stock closed its last trading session at $232.38, marking a slight 0.1% gain. This price gives the company a market capitalization of around $2.48 trillion and a P/E ratio of approximately 32.8. The share price currently resides in the upper half of its 52-week range, which spans from $161.38 to $258.60.

Should investors sell immediately? Or is it worth buying Amazon?

The institutional buying trend diverges from recent activity by company insiders. Over the past 90 days, insiders have disposed of approximately 82,234 shares worth over $19 million. This includes a sale by CEO Douglas J. Herrington, who sold 22,000 shares for a total of $5.5 million on October 31.

Operationally, Amazon faces several challenges:
* A recall of 332 Zoox vehicles in the United States.
* Continuing regulatory scrutiny over its market power in the cloud computing sector.
* Ongoing debates concerning potential restrictions on AI-powered shopping assistants.

Outlook: Focus on AWS, Advertising, and AI Integration

The broader analyst sentiment remains overwhelmingly positive. Of 73 tracked analyst ratings, a full 96% recommend buying the stock. The median price target stands near $300, suggesting significant potential upside from current levels.

This confidence is primarily built on two pillars:
* The high-margin core business of Amazon Web Services (AWS).
* The systematic integration of Generative AI across its consumer offerings and infrastructure.

From a technical perspective, the stock appears to be in a consolidation phase, digesting gains made earlier in the year. The next major catalyst will be the upcoming quarterly report, expected around February 4–5, 2026. Market participants will closely watch the trends in AWS's operating margin and the growth trajectory of the advertising segment, as these factors are seen as critical for driving the share price toward the $300 target in the first half of 2026.