Bezos Offloads $5.7 Billion in Amazon (AMZN) Stock Ahead of Q2 Earnings
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AI Expenses vs. Revenue
The timing comes as Amazon stock has climbed 38% from its April low. Despite the gains, the company is facing questions from investors about whether its heavy artificial intelligence spending will begin to boost profitability. Analysts expect second-quarter earnings of $1.32 per share on $162 billion in revenue, reflecting 4% and 9% growth from last year. That pace trails other top tech names, which are averaging 15% earnings growth and 12% revenue expansion.
Amazon has committed $104 billion to capital expenditures this year, including $30 billion for new data centers in Pennsylvania and North Carolina.
Bezos' History of Share Sales
Bezos remains the company's largest individual shareholder, still owning around 884 million shares or more than 8% of the company. His Amazon stake is the foundation of his $252.3 billion net worth, placing him third on the Bloomberg Billionaires Index.
Since 2002, Bezos has sold over $50 billion in Amazon stock. In 2024 alone, he sold 75 million shares for $13.6 billion. He also donated about $190 million in shares to nonprofits this year. His only recorded purchase was one share for $114.77 in 2022. Market reaction to the latest sales has been limited, with the stock holding steady during the selling period. Investors appear to view the move as part of Bezos' long-running strategy to diversify his holdings rather than a shift in outlook on Amazon itself.
Is AMZN Stock a Good Buy?
On the Street, Amazon boasts a Strong Buy consensus rating. The average AMZN stock price target is $258.27, implying an 11.59% upside.
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The introduction of luxury shopping through Saks on Amazon and partnerships with brands like Michael Kors and The Ordinary diversified the product offering and attracted new customer Kuiper reached a significant milestone with successful satellite launches, positioning Amazon to begin customer service later in 2025. This initiative represented a substantial long-term growth opportunity in the broadband connectivity market, particularly for underserved rural areas. The company's continued investment in logistics infrastructure, including the $4 billion commitment to expand rural delivery networks, was expected to enhance competitive advantages and customer reach in the second quarter and beyond. AMZN Price Performance & Stock Valuation Shares of Amazon have gained 5.5% in the year-to-date period compared with the broader Zacks Retail-Wholesale sector and the S&P 500 index's increase of 6.9% and 8.2%, respectively. 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While facing intense competition from Microsoft, Alphabet, and Oracle, Amazon's integrated platform spanning cloud, retail, and emerging technologies like Project Kuiper creates sustainable competitive advantages justifying current valuations for long-term investors. Conclusion Amazon's diversified business model, spanning high-growth AWS cloud services, robust advertising momentum, and optimized e-commerce operations, creates multiple revenue catalysts ahead of second-quarter 2025 earnings. The company's strategic investments in AI infrastructure, international expansion, and next-generation technologies like Project Kuiper establish sustainable competitive moats. Despite premium valuations, Amazon's integrated ecosystem and growth trajectory make it an attractive buy for investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
