Wall Street Goes All-In on Amazon (AMZN)—Here’s the Hidden Play
Big money isn’t just betting on Bezos’ empire—it’s doubling down. Institutional investors are piling into AMZN like it’s 1999, and the tape tells the real story.
Why the frenzy? Three words: cloud, ads, and that sweet, sweet monopoly vibe. Amazon Web Services still prints money, while retail’s ’death by a thousand cuts’ strategy keeps competitors gasping. Even the Fed’s rate hikes couldn’t dent this cash machine.
Bonus cynicism: Nothing says ’conviction’ like hedge funds chasing last quarter’s earnings beat. Stay greedy, folks.
Source: TheHill / AP Photo/Seth Wenig, File
Amazon Grabbed by Institutional Investors for One Major Reason…
The US stock market is in the midst of a critical week. The S&P 500, Dow Jones Index, and Nasdaq are all down Wednesday with eyes fixated on the looming Nvidia (NVDA) earnings report. Indeed, it presents Wall Street with its first big test of the year, as it could help to dictate where shares will go throughout a vital Q2.
The year has not been kind to a slew of stocks, but that may be turning around. One company that has seen its fortunes somewhat shift is Amazon (AMZN), as institutional investors have loaded up on the stock for one very specific reason.
According to a recent report, a remarkable 72.2% of AMZN shares are owned by institutions, with many boosting their positions in Q4. Additionally, the Investment Management Corp. of Ontario was among them. Specifically, they increased holdings by 6.8%, raising their position to $201 million. The reason was a clear bet on its Q1 performance being far better than expectations. Moreover, that bet appeared to be right.
The firm boasted earnings per share of $1.59, outperforming the estimate by $0.21. Additionally, its revenue came in at $155.67 billion, once again beating estimates and representing an 8.6% jump from last year. The stock is only up 9% over the last 30 days but could see a major turnaround forming.
