Amazon (AMZN) Stock: Follow Big Money's Lead

Amazon.com, Inc. (NASDAQ: AMZN)

Amazon has been a very interesting stock to follow over the years. In late 2014, investors started to get concerned as the company struggled to turn a profit while Jeff Bezos started spending big money on infrastructure. However, when 2015 rolled around, AMZN shocked the world with positive earnings, and since then, the stock has been soaring. However, today doesn’t seem to be the best of days, with AMZN down about 1%. Nonetheless, it’s time to buy the dip. The truth is that big money is getting interested, and when big money gets interested, big money is made. Today, we’ll talk about some of the larger investments we’ve seen in Amazon, why I’m so bullish on the stock, and what we can expect to see moving forward. So, let’s get right to it…

Big Money Is Investing In Amazon

Recently, we’ve seen two relatively large purchases of Amazon shares by hedge funds. Here’s what we’ve seen…

  • Rail-splitter Capital Management – According to a recent SEC filing, Rail-splitter Capital Management made the decision to invest more money into Amazon in the fourth quarter of last year. During the quarter, the company added 3,382 Amazon shares to its portfolio, bringing its total ownership in Amazon to 24,610 shares valued at approximately $13,586,689.
  • Eagle Asset Management – Another big money firm that has made a decision to invest in AMZN recently was Eagle Asset Management. According to a recent 13F filing with the SEC, in the fourth quarter, the company purchased 5,955 shares of AMZN with a value of approximately $4,024,000.

Why This Matters

The truth is that the firms mentioned above and others are in charge of investments for tons of people. As a result, these firms spend massive amounts of money and man power on research to ensure that they are making the best decision for their investors. So, when we see them making such large investments in a stock, in this particular case, AMZN, we can expect to see future gains in the value of the stock.

Other Reasons To Be Bullish On AMZN

Following big money is generally a good idea. However, the simple fact that big money is spending money on AMZN isn’t the only reason I’m expecting to see gains from the stock. In fact, it’s likely one of the smallest reasons. The truth is, there are tons of good bits of news surrounding AMZN which will likely turn into gains. First and foremost, the company’s growth in Amazon Prime has been nothing short of amazing. On top of that, we’ve seen incredibly positive news with regard to Amazon Web Services, Amazon Prime Fresh, and several other ventures the company is part of. All in all, I’m incredibly impressed with the moves we’ve seen from the company over the past 5 years or so.

What We Can Expect To See Moving Forward

If you can’t tell by the information I’ve provided above, I have a very bullish opinion of what we can expect to see from AMZN. The reality is that the company is making all of the right moves in order to push its stock in the right direction, and at the moment, it is enjoying the fruit of its labor. So, looking at today’s dip, you can be concerned, or you can see it for what it really is… an opportunity in the making!

What Do You Think?

Where do you think AMZN is headed moving forward? Let us know your opinion in the comments below!