Since the start of the year, the US stock market has been something of a mixed bag. With macroeconomic pressures and geopolitical uncertainties, shares have been increasingly volatile. However, that hasn’t stopped one stock from being a clear focus. Specifically, Amazon (AMZN) has been grabbed by institutional investors loading up on the stock for one critical reason.

The e-commerce juggernaut has been an investor favorite for much of the last two years. Its position within the Magnificent 7 has solidified its place, while continued diversification plans have only increased its attractiveness. With so much focus, it could be a clear candidate to surge when the market turns around for good.

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Amazon Grabbed by Institutional Investors for One Major Reason…

The US stock market is in the midst of a critical week. The S&P 500, Dow Jones Index, and Nasdaq are all down Wednesday with eyes fixated on the looming Nvidia (NVDA) earnings report. Indeed, it presents Wall Street with its first big test of the year, as it could help to dictate where shares will go throughout a vital Q2.

The year has not been kind to a slew of stocks, but that may be turning around. One company that has seen its fortunes somewhat shift is Amazon (AMZN), as institutional investors have loaded up on the stock for one very specific reason.

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According to a recent report, a remarkable 72.2% of AMZN shares are owned by institutions, with many boosting their positions in Q4. Additionally, the Investment Management Corp. of Ontario was among them. Specifically, they increased holdings by 6.8%, raising their position to $201 million. The reason was a clear bet on its Q1 performance being far better than expectations. Moreover, that bet appeared to be right.

The firm boasted earnings per share of $1.59, outperforming the estimate by $0.21. Additionally, its revenue came in at $155.67 billion, once again beating estimates and representing an 8.6% jump from last year. The stock is only up 9% over the last 30 days but could see a major turnaround forming.