In a recent move at Amazon.com Inc (NASDAQ:AMZN), Senior Vice President David Zapolsky sold shares totaling over $1.7 million. The transactions occurred on August 21, as revealed in a regulatory filing with the Securities and Exchange Commission (SEC).
According to the filing, Zapolsky executed multiple sales at varying prices, with the total number of shares sold amounting to 9,490. The shares were sold at prices ranging from $180.264 to $182.0703. The highest price recorded for the shares sold was $182.22, and the lowest was $179.94, as noted in the footnotes of the SEC document.
These sales are part of a prearranged trading plan under Rule 10b5-1, which allows company insiders to set up a schedule for selling stocks they own in a way that avoids accusations of insider trading. The plan had been adopted by Zapolsky on November 13, 2023.
It's worth noting that the SEC filing also reported the acquisition of shares by Zapolsky through the exercise of options. However, the focus of investor attention is typically on the sale of shares as it may reflect the executive's view on the company's current valuation.
As of the last transaction reported on August 21, after the sales, Zapolsky still owned 64,610 shares of Amazon.com Inc. The company's stock continues to be watched closely by investors for signs of how insiders view the market conditions and the company's future prospects.
In other recent news, Disney and Reliance's proposed $8.5 billion merger is facing regulatory scrutiny from the Competition Commission of India due to potential monopoly over cricket broadcast rights. To mitigate these concerns, the companies may have to sell some of their cricket broadcast rights or commit to advertisement price caps for cricket matches. Meanwhile, India's commerce minister, Piyush Goyal, has accused Amazon of predatory pricing, questioning the company's investment strategies and their impact on traditional stores.
In the gaming sector, Amazon Games, in collaboration with Glowmade, announced the launch of "King of Meat," an online cooperative action game set to release on major platforms. As for financial assessments, Morgan Stanley (NYSE:MS) maintained its Overweight rating on Amazon shares, highlighting potential for long-term growth and profitability strategies. Standard & Poor's revised its outlook on Warner Bros Discovery (NASDAQ:WBD) to "negative" due to concerns over the decline in the company's cable TV business.
These are recent developments that investors might find noteworthy. The information is based on past articles and does not include any personal opinions or predictions about the companies mentioned or their financial health.
InvestingPro Insights
Amid the news of Senior Vice President David Zapolsky's share sales at Amazon.com Inc (NASDAQ:AMZN), investors are keenly observing the company's financial health and market valuation. As part of this scrutiny, InvestingPro data and tips provide a deeper understanding of Amazon's current position in the market.
InvestingPro data highlights Amazon's significant market capitalization of $1.86 trillion, underscoring its status as a tech behemoth. The company's Price/Earnings (P/E) ratio stands at 41.38, which is noteworthy when considering its near-term earnings growth. Despite a high earnings multiple, which can suggest a premium valuation, Amazon's P/E ratio indicates that the company is trading at a low multiple relative to its growth. This can be a positive sign for investors looking for growth at a reasonable price.
Furthermore, Amazon's revenue growth over the last twelve months as of Q2 2024 was 12.32%, showcasing the company's ability to increase its top-line figures. The Operating Income Margin during the same period was 9.0%, which can give investors insight into the company's profitability and operational efficiency.
For those seeking additional insights, there are several InvestingPro Tips that may be of interest. Amazon is recognized as a prominent player in the Broadline Retail industry and has demonstrated the ability to cover its interest payments with its cash flows. It operates with a moderate level of debt, which is an important consideration for risk assessment. While Amazon does not pay dividends, which could be a factor for income-focused investors, it has been profitable over the last twelve months and analysts predict profitability for this year as well. Notably, the company has provided a strong return over the last five years and has achieved a high return over the last decade, which could be compelling for long-term investors.
For those looking to delve deeper into Amazon's financial metrics and future outlook, InvestingPro offers additional tips. There are currently 22 analysts who have revised their earnings estimates downwards for the upcoming period, which may influence investor sentiment. To explore these and other insights, including a total of 12 InvestingPro Tips for Amazon, interested readers can visit https://www.investing.com/pro/AMZN.
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