Amazon.com (NASDAQ:AMZN) Trading 3.2% Higher – Here’s Why

Amazon.com, Inc. (NASDAQ:AMZN) shares rose 3.2% on Monday . The company traded as high as $249.71 and last traded at $240.14. 75,714,164 shares changed hands during mid-day trading, an increase of 49% from the average daily volume of 50,650,547 shares. The stock had previously closed at $232.69.

Amazon.com News Summary

Here are the key news stories impacting Amazon.com this week:

• Positive Sentiment: AWS launched a $1 billion AI engineering unit to embed specialist engineers with customers, which could accelerate enterprise AI adoption and support cloud growth. Article Title
• Positive Sentiment: Prime Day sales reportedly reached a record $26.4 billion, signaling strong demand across Amazon’s retail and membership businesses. Article Title
• Positive Sentiment: U.S. authorities lifted a ban on Anthropic’s top AI model, a potentially favorable development for Amazon’s AI-related cloud exposure. Article Title

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Weiss Ratings raised shares of Amazon.com from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday, May 6th. Robert W. Baird lifted their price target on Amazon.com from $285.00 to $300.00 and gave the company an “outperform” rating in a research note on Thursday, April 30th. William Blair reaffirmed an “outperform” rating on shares of Amazon.com in a report on Thursday, April 9th. BNP Paribas Exane increased their price target on Amazon.com from $320.00 to $345.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 5th. Finally, Roth Mkm raised their price objective on Amazon.com from $285.00 to $300.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Amazon.com currently has an average rating of “Moderate Buy” and a consensus price target of $312.78.

Amazon.com Trading Up 1.5%

The company has a 50 day simple moving average of $255.10 and a 200 day simple moving average of $234.31. The company has a market capitalization of $2.60 trillion, a PE ratio of 28.94, a price-to-earnings-growth ratio of 1.80 and a beta of 1.44. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.18.

Amazon.com (NASDAQ:AMZN) last released its earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share for the quarter, beating the consensus estimate of $1.63 by $1.15. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The business had revenue of $181.52 billion for the quarter, compared to the consensus estimate of $177.28 billion. During the same quarter last year, the business posted $1.59 earnings per share. The business’s quarterly revenue was up 16.6% compared to the same quarter last year. Analysts anticipate that Amazon.com, Inc. will post 7.71 earnings per share for the current year.

Insider Transactions at Amazon.com

In other news, CEO Matthew S. Garman sold 15,467 shares of the firm’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $263.40, for a total value of $4,074,007.80. Following the transaction, the chief executive officer directly owned 14,159 shares of the company’s stock, valued at approximately $3,729,480.60. This trade represents a 52.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the business’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the transaction, the senior vice president owned 41,190 shares in the company, valued at $11,060,750.70. The trade was a 18.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 194,774 shares of company stock worth $51,403,934. Company insiders own 8.90% of the company’s stock.

Institutional Trading of Amazon.com

A number of hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in shares of Amazon.com by 1.1% during the 1st quarter. Vanguard Group Inc. now owns 832,274,556 shares of the e-commerce giant’s stock valued at $158,348,557,000 after acquiring an additional 8,913,959 shares during the last quarter. State Street Corp increased its position in Amazon.com by 1.8% during the fourth quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant’s stock worth $89,708,913,000 after purchasing an additional 6,971,680 shares during the last quarter. Geode Capital Management LLC raised its stake in Amazon.com by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 225,120,994 shares of the e-commerce giant’s stock worth $51,753,622,000 after purchasing an additional 2,479,324 shares during the period. Norges Bank purchased a new position in Amazon.com during the fourth quarter worth about $32,868,735,000. Finally, Auto Owners Insurance Co boosted its holdings in Amazon.com by 27,376.7% in the 4th quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant’s stock valued at $2,272,397,000 after purchasing an additional 98,090,585 shares during the last quarter. Institutional investors and hedge funds own 72.20% of the company’s stock.

About Amazon.com

Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.

Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.