Amazon has made headlines for its investment in electric vehicle manufacturer Rivian Automotive, but many may not realize that the e-commerce giant holds shares in nine other publicly traded companies.
As of July 30, Amazon revealed through a Securities and Exchange Commission (SEC) filing that it owned stakes in ten public companies, with a total portfolio value of $2.53 billion as of June 30. While this sum is significant, it represents less than 1% of Amazon’s market capitalization of $1.76 trillion, meaning changes in the stock prices of these holdings are not expected to greatly impact Amazon’s overall financial performance. However, the company did record $443 million in “marketable equity securities valuation gains” during the second quarter, primarily driven by its Rivian investment, accounting for 3.3% of its net income for that period.
Investors in the ten companies where Amazon has stakes could see potential benefits if Amazon ever considered acquiring any of them, although it’s not advisable to invest solely on speculation of a takeover.
Here’s a snapshot of Amazon’s current stock holdings, ranked by their portfolio value:
1. Rivian (EV manufacturer) – Market Cap: $14.7 billion; Amazon Stake: 16.04%; Value: $2.13 billion
2. Air Transport Services Group (Air cargo transportation) – Market Cap: $970 million; Amazon Stake: 19.39%; Value: $176.7 million
3. Twilio (Cloud communications) – Market Cap: $10.1 billion; Amazon Stake: 1.10%; Value: $100.5 million
4. Vital Farms (Organic egg producer) – Market Cap: $1.5 billion; Amazon Stake: 3.63%; Value: $71.5 million
5. Astera Labs (Semiconductor) – Market Cap: $6.6 billion; Amazon Stake: 0.14%; Value: $16.8 million
6. Marvell Technology (Semiconductor) – Market Cap: $51.3 billion; Amazon Stake: 0.03%; Value: $15.8 million
7. IonQ (Quantum computing) – Market Cap: $1.5 billion; Amazon Stake: 0.09%; Value: $13.5 million
8. Nautilus Biotechnology (Biotech) – Market Cap: $303 million; Amazon Stake: 1.16%; Value: $3.4 million
9. SmartRent (Real estate technology) – Market Cap: $345 million; Amazon Stake: 0.30%; Value: $1.5 million
10. S&P 500 Index – N/A
Notably, five of these stocks have been trading for less than three years, and therefore lack extensive performance data. For instance, Rivian and Astera Labs went public in late 2021 and early 2024, respectively, while several others emerged through SPAC mergers.
Vital Farms has seen significant gains, nearly tripling in value over the past year, despite a rocky start post-IPO. It closed at $34.93 on August 2, marking a 59% increase since the IPO. As America’s leading brand for pasture-raised eggs, the company has demonstrated strong financial growth.
However, a review of Amazon’s holdings suggests they are generally risky, with only Air Transport Services and Vital Farms currently profitable based on GAAP standards. Rivian, despite the challenges faced by new auto startups, shows promise owing to its partnerships, particularly with Amazon for electric delivery vans and with Volkswagen for joint ventures.
Rivian is due to report its second-quarter results, with expectations for a modest revenue rise to $1.13 billion and a wider adjusted loss per share.
Prospective investors should weigh their decisions carefully; Amazon is not currently highlighted as a top investment choice by leading advisory services. Ultimately, the decision to invest in Amazon or its stock holdings should be approached with caution, considering both performance potential and associated risks.