Allianz tech trust cuts Amazon on capex concerns

Dent in retailer's profits behind cull

David Brenchley
clock • 2 min read

The Allianz Technology trust (ATT) has slashed its exposure to US e-commerce behemoth Amazon, from 7% 12 months ago to just 1% today, due to worries that the firm’s more aggressive business investment will not translate through to higher sales growth.

In October 2018, Amazon CEO Jeff Bezos said Q3 profits at his $880bn firm had been hit in Q3 thanks to increased investment into its next-day delivery service offered to Prime Loyalty customers. Net income fell to $2.1bn in Q3 2018 compared to $2.9bn in Q3 2017. That did not go down well with investors and the stock, which had already slipped 12% from its all-time high in September, fell a further 14%.  Walter Price, ATT's San Francisco-based manager, was one of those disappointed shareholders. ATT's stockmarket filings show Amazon accounted for 7.1% of its portfolio - or £33m o...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Specialist

Deep Dive: Thematics offer diversification but investors must consider bond sensitivity

Deep Dive: Thematics offer diversification but investors must consider bond sensitivity

‘Dedicated specialists’

James Baxter-Derrington
clock 06 April 2023 • 4 min read
European private equity yet to spend €270bn worth of capital

European private equity yet to spend €270bn worth of capital

Deployment of capital expected

Kathleen Gallagher
clock 04 January 2023 • 1 min read
Early-stage biopharma: An opportunity for strategic investment

Early-stage biopharma: An opportunity for strategic investment

Disproportionately smaller investment

Ali H. Munawar
clock 10 August 2022 • 4 min read
Trustpilot