On May 26th, Shares of Amazon (AMZN) experienced a remarkable 4.44% increase, defying the market’s volatility. This surge occurred even as Washington Trust Advisors Inc., a prominent institutional investor, decided to decrease its holdings in Amazon.com due to uncertain market conditions.
Washington Trust Advisors Inc. has disclosed a 5.5% decrease in its holdings of Amazon.com, Inc. during the fourth quarter, as reported to the Securities and Exchange Commission (SEC).
The institutional investor sold 14,148 shares of the e-commerce giant’s stock, which brings their remaining shares to 241,025. Despite the reduction, Amazon.com still holds the 16th position in its investment portfolio, accounting for approximately 2.2% of its total investments.
It’s important to note that Washington Trust Advisors Inc. is not alone in making adjustments to its investments due to the volatile market conditions caused by the ongoing effects of the Covid-19 pandemic. Many investors are making similar moves across various sectors, including technology giants like Facebook Inc., Google parent Alphabet Inc. (NASDAQ: GOOG), and Apple Inc. (NASDAQ: AAPL).
Investors often reduce their holdings for several reasons. They may want to minimize exposure to specific markets or companies due to concerns about overvaluation, which could result in lower returns on investment. They may also anticipate potential downward trends in certain businesses.
Investors’ decisions are influenced by multiple factors, such as economic data, inflation risks, and employment reports regularly provided by governments worldwide. As the pandemic has impacted all sectors, it is crucial for stakeholders to stay informed about changes in holdings, as these can significantly affect short-term and long-term decisions regarding individual investors’ portfolios.
As of press time, AMZN stock is trading at the price of $120.11 with a market capitalization of $1252.51 billion.