Amazon.com (NASDAQ:AMZN) Shares Up 2.5% – Still a Buy?

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price rose 2.5% during mid-day trading on Friday . The company traded as high as $233.90 and last traded at $232.69. 241,373,768 shares changed hands during mid-day trading, an increase of 381% from the average session volume of 50,228,629 shares. The stock had previously closed at $227.01.

More Amazon.com News

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

• Positive Sentiment: AWS raised prices on AI GPU and cloud capacity reservations, which should help margins and shows Amazon is benefiting from strong AI demand and tighter chip supply. Forget Apple. Amazon just made AI a lot more expensive.
• Positive Sentiment: Reports say Prime Day is on track to generate record sales, reinforcing Amazon’s e-commerce momentum and supporting investor confidence in near-term retail results. Amazon’s Prime Day Forecast to Generate a Record $26 Billion
• Positive Sentiment: Amazon said it will add $13 billion more to its India investment plan, bringing total planned spending there to $48 billion through 2030 for AI and cloud expansion. Amazon to invest additional $13 billion in India
• Positive Sentiment: Several analysts and market commentators reiterated bullish views, arguing that Amazon’s AI spending is widening its competitive moat and supporting longer-term growth. Amazon’s AI Spending Is Building A Stronger Moat
• Neutral Sentiment: Amazon’s eero business teamed with Kinetic on backup Wi‑Fi service, a modest product partnership that adds to Amazon’s broader connectivity ecosystem but is unlikely to move AMZN meaningfully on its own. Kinetic and eero Launch AlwaysOn Wi-Fi to Keep Customers Connected During Internet Outages
• Negative Sentiment: Investors remain concerned about Amazon’s heavy capital spending, with some reports saying capex worries and insider selling are weighing on sentiment. Amazon Stock Trending As Capex Concerns, Prime Day Questions, Insider Sales Pile Up
• Negative Sentiment: The European Commission said Amazon Web Services could face stricter “gatekeeper” rules under the Digital Markets Act, raising the risk of added compliance burdens and potential fines. Amazon, Microsoft cloud computing services should fall under EU tech rules, EU regulators say

Analyst Ratings Changes

AMZN has been the subject of a number of recent research reports. Tigress Financial lifted their price target on shares of Amazon.com from $305.00 to $315.00 and gave the stock a “buy” rating in a report on Wednesday, March 25th. DA Davidson raised their target price on shares of Amazon.com from $175.00 to $250.00 and gave the stock a “neutral” rating in a research report on Thursday, April 30th. Robert W. Baird increased their price target on Amazon.com from $285.00 to $300.00 and gave the stock an “outperform” rating in a research note on Thursday, April 30th. Guggenheim reaffirmed a “buy” rating and issued a $320.00 price objective (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. Finally, Bank of America raised their price target on Amazon.com from $298.00 to $310.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $312.78.

Amazon.com Stock Up 2.5%

The stock has a fifty day moving average of $255.85 and a two-hundred day moving average of $234.14. The company has a quick ratio of 1.01, a current ratio of 1.18 and a debt-to-equity ratio of 0.27. The stock has a market cap of $2.50 trillion, a price-to-earnings ratio of 27.83, a PEG ratio of 1.75 and a beta of 1.44.

Amazon.com (NASDAQ:AMZN) last announced its quarterly earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 EPS for the quarter, topping the consensus estimate of $1.63 by $1.15. The company had revenue of $181.52 billion during the quarter, compared to analyst estimates of $177.28 billion. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The firm’s revenue was up 16.6% on a year-over-year basis. During the same period in the prior year, the firm posted $1.59 earnings per share. As a group, analysts predict that Amazon.com, Inc. will post 7.71 EPS for the current fiscal year.

Insider Buying and Selling at Amazon.com

In other Amazon.com news, SVP David Zapolsky sold 9,270 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the completion of the sale, the senior vice president directly 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. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 27,500 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $275.00, for a total transaction of $7,562,500.00. Following the completion of the sale, the chief executive officer directly owned 471,361 shares of the company’s stock, valued at $129,624,275. The trade was a 5.51% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 195,774 shares of company stock valued at $51,614,434. 8.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of AMZN. Compagnie Lombard Odier SCmA bought a new stake in shares of Amazon.com during the 3rd quarter valued at approximately $451,642,000. Narwhal Capital Management lifted its stake in Amazon.com by 2.3% in the 4th quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant’s stock valued at $49,997,000 after purchasing an additional 4,854 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position in Amazon.com by 21.0% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 24,653,228 shares of the e-commerce giant’s stock valued at $5,690,463,000 after buying an additional 4,275,942 shares in the last quarter. Weaver Capital Management LLC boosted its position in Amazon.com by 13.6% in the fourth quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant’s stock valued at $9,063,000 after buying an additional 4,713 shares in the last quarter. Finally, Ethos Financial Group LLC grew its stake in shares of Amazon.com by 9.6% during the fourth quarter. Ethos Financial Group LLC now owns 36,485 shares of the e-commerce giant’s stock worth $8,421,000 after buying an additional 3,196 shares during the last quarter. Institutional investors and hedge funds own 72.20% of the company’s stock.

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.