Exchange-traded funds bought a net $247.4m of Amazon shares on 9 October, led by QQQ and SPYM, extending a recent shift towards buying after a volatile run of inflows and outflows.
Exchange-traded funds bought a net $247.4 million of Amazon.com shares on Friday, October 9, extending a short run of firmer demand for the stock after a mixed stretch earlier in the week. GuruFocus said 34 ETFs added to their Amazon positions that day, while 13 reduced exposure, and the buying followed another day of net inflows on October 8. Over the previous five reported sessions, ETF activity had swung back and forth, with net selling on October 5 and October 7 offset by buying on October 6 and October 8. The latest figures suggest fund managers were leaning back into the e-commerce and cloud giant, even after the stop-start pattern seen in the prior week.
Among the biggest purchasers by dollar value were QQQ, which added 461,766 shares worth $121.2 million, and SPYM, which bought 267,339 shares valued at $70.2 million. IVV added $14.9 million, QQQM added $12.6 million and XLG added $5.8 million, according to GuruFocus’s ETF holdings data. The flow pattern matters because Amazon is one of the largest and most closely watched names in index-tracking portfolios, meaning changes in broad-market ETFs can quickly translate into sizeable swings in demand for the stock.
Amazon sits at the intersection of consumer spending, digital advertising and cloud computing, with operations split across North America, international markets and Amazon Web Services. GuruFocus said the company’s trailing 12-month revenue stood at $775.68 billion, up 14.7% from a year earlier, while its gross margin was 50.8% and net margin 17.5%. The stock carried a price-to-earnings ratio of 20.87, a price-to-book ratio of 5.07 and a price-to-sales ratio of 3.65, with a market value of $2.80 trillion. GuruFocus also said its GF Score was 93 out of 100, with GF Value at $251.20 versus a share price of $259.53.
For investors, the key question is whether the buying continues. GuruFocus noted that over the last five reported sessions ETFs were net buyers on three days and net sellers on two, leaving the recent trend marginally positive. If that pattern holds, it would reinforce the view that index funds are again adding to Amazon after a brief period of hesitation.
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