Phillip Securities Downgrades Amazon.com (NASDAQ:AMZN) to Moderate Buy

Amazon.com (NASDAQ:AMZN) was downgraded by Phillip Securities from a “strong-buy” rating to a “moderate buy” rating in a note issued to investors on Monday,Zacks.com reports.

A number of other analysts have also recently issued reports on AMZN. Canaccord Genuity Group lifted their price objective on Amazon.com from $300.00 to $330.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Citigroup reaffirmed a “buy” rating and set a $350.00 price target (up from $325.00) on shares of Amazon.com in a research note on Friday. New Street Research lifted their price target on Amazon.com from $280.00 to $350.00 and gave the company a “buy” rating in a report on Monday, May 4th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $325.00 price target (up from $315.00) on shares of Amazon.com in a research note on Friday. Finally, TD Cowen reaffirmed a “buy” rating and set a $350.00 price objective (up from $340.00) on shares of Amazon.com in a research report on Friday. Fifty-six research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Amazon.com currently has an average rating of “Moderate Buy” and an average price target of $322.56.

Amazon.com Stock Up 4.6%

AMZN stock opened at $284.02 on Monday. Amazon.com has a 12-month low of $196.00 and a 12-month high of $287.20. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. The company has a market cap of $3.06 trillion, a price-to-earnings ratio of 22.85, a PEG ratio of 2.01 and a beta of 1.45. The company has a 50 day moving average of $246.05 and a two-hundred day moving average of $236.44.

Amazon.com (NASDAQ:AMZN) last issued its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. During the same quarter last year, the business posted $1.68 EPS. The company’s revenue for the quarter was up 19.6% on a year-over-year basis. On average, equities analysts anticipate that Amazon.com will post 7.84 earnings per share for the current fiscal year.

Insider Buying and Selling at Amazon.com

In related news, CEO Matthew S. Garman sold 15,467 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The stock was 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $262.38, for a total value of $620,003.94. Following the completion of the sale, the vice president owned 119,780 shares of the company’s stock, valued at approximately $31,427,876.40. This trade represents a 1.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 76,867 shares of company stock worth $20,253,702 in the last 90 days. Company insiders own 8.90% of the company’s stock.

Institutional Trading of Amazon.com

A number of institutional investors and hedge funds have recently modified their holdings of the company. Norges Bank acquired a new position in shares of Amazon.com during the 4th quarter worth about $32,868,735,000. Auto Owners Insurance Co grew 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 buying an additional 98,090,585 shares during the last quarter. J. Stern & Co. LLP grew its holdings in Amazon.com by 20,598.0% in the 4th quarter. J. Stern & Co. LLP now owns 87,982,814 shares of the e-commerce giant’s stock valued at $20,308,193,000 after buying an additional 87,557,736 shares during the last quarter. Nuveen LLC bought a new position in Amazon.com in the 1st quarter worth approximately $11,674,091,000. Finally, Cardano Risk Management B.V. increased its position in Amazon.com by 879.4% in the 4th quarter. Cardano Risk Management B.V. now owns 27,862,400 shares of the e-commerce giant’s stock worth $6,431,199,000 after buying an additional 25,017,588 shares during the period. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: AWS growth and AI demand drove the rally. AWS reportedly posted its fastest growth in 18 quarters, while CEO Matt Garman said demand still significantly exceeds available capacity and is extending into 2028. Analysts also highlighted a reported $496 billion AWS backlog and the potential for AWS to become a $1 trillion revenue business. Amazon Stock Rises as AWS Sees a Major Shift in AI Demand
• Positive Sentiment: Amazon surpassed the $3 trillion market-capitalization milestone. Shares reached a record high as investors became more confident that cloud growth and improving returns on AI infrastructure can justify the company’s large capital-investment program. The milestone strengthened positive sentiment across major AI and cloud stocks. Amazon Enters $3 Trillion Club as AI Optimism Sweeps Through Wall Street
• Positive Sentiment: Wall Street raised its valuation expectations. Multiple analysts increased AMZN price targets after the earnings beat, with bullish commentary emphasizing AWS margins, long-term AI infrastructure demand and growth beyond e-commerce. The broader market rally, falling crude oil prices and lower Treasury yields also supported growth stocks. JPMorgan Raises Amazon Stock Price Target After Earnings
• Neutral Sentiment: AWS announced a multiyear collaboration with Superblocks to offer secure enterprise AI application development through Amazon Bedrock. The agreement supports AWS’s competitive positioning, but its near-term financial impact was not disclosed. Superblocks and AWS Announce Strategic Collaboration
• Negative Sentiment: Investors remain concerned about the cost of the AI expansion. Amazon raised projected 2026 capital spending by roughly $20 billion, with total AI and data-center investment discussed at more than $220 billion. Debt has also increased, raising questions about financing, free cash flow and the timing of returns. Amazon Raised 2026 CapEx by $20 Billion
• Negative Sentiment: Amazon faces consumer lawsuits concerning alleged toxic heavy metals in protein powder and seafood sustainability claims. These matters appear unlikely to drive the current move, but they add potential legal, reputational and compliance risk. Amazon Sued Over Protein Powder Allegations

Amazon.com Company Profile

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.