Key Insights

• Institutions' substantial holdings in Amazon.com implies that they have significant influence over the company's share price

• 44% of the business is held by the top 25 shareholders

• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Amazon.com, Inc. (NASDAQ:AMZN), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

In the chart below, we zoom in on the different ownership groups of Amazon.com.

View our latest analysis for Amazon.com

What Does The Institutional Ownership Tell Us About Amazon.com?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Amazon.com does have institutional investors; and they hold a good portion of the company's...

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