Amazon.com (NASDAQ:AMZN) Trading 1% Higher – Time to Buy?

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price traded up 1% during trading on Friday . The stock traded as high as $210.33 and last traded at $210.00. 56,460,863 shares traded hands during trading, an increase of 5% from the average session volume of 53,914,824 shares. The stock had previously closed at $207.92.

Key Amazon.com News

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

• Positive Sentiment: Amazon agreed to lead a record OpenAI funding round with a $50 billion commitment and will make AWS the exclusive third‑party cloud distributor for OpenAI — a major strategic win for AWS revenue and enterprise positioning in the AI stack. OpenAI’s $110 billion funding round draws investment from Amazon, Nvidia, SoftBank (Reuters)
• Positive Sentiment: CEO Andy Jassy framed the deal as an early, high‑upside AI opportunity; the partnership gives Amazon differentiated AI product and distribution leverage if OpenAI adoption accelerates. Amazon to Invest $50 Billion in OpenAI as Part of Strategic Partnership (Barron’s)
• Positive Sentiment: High‑profile investors have recently added to AMZN positions, suggesting some institutional conviction in Amazon’s AI and cloud story. Billionaire Stanley Druckenmiller Piled Into Alphabet and Amazon (Fool)
• Neutral Sentiment: The $50B commitment appears staged: initial $15B now with additional tranches tied to milestones (IPO/AGI), so actual near‑term cash outflow may be smaller — but the headline size shapes market perception. Amazon’s $50 billion OpenAI investment may depend on IPO or AGI milestone (Reuters)
• Neutral Sentiment: Evercore trimmed Amazon’s price target (from $335 to $285) while keeping an outperform rating — a recalibration that can temper upside expectations without flipping the bull case. Evercore ISI adjusts price target on Amazon to $285 (MarketScreener)
• Negative Sentiment: Investors worry about much larger capex and AI spending: reports flag a potential ~$200B capex program and a prior stock dip after AI‑spending disclosures, which pressures free cash flow and near‑term margins. Will Heavy Capex Spending Weigh on Amazon’s AI Ambitions? (Zacks)
• Negative Sentiment: Broader cost and restructuring headlines: Amazon announced roughly 30,000 job cuts (part of industry AI‑led reductions), which is a near‑term signal of restructuring but also public evidence of disruption and execution risk. US Job Cuts Surge to Highest Level Since Pandemic (Blockonomi)
• Negative Sentiment: Legal risk: a UK court cleared the way for large collective suits from sellers/consumers over alleged marketplace abuses, creating potential multi‑billion pound liabilities. Amazon refused permission to appeal go-ahead for UK lawsuits (Reuters)
• Negative Sentiment: Insider selling and short‑interest chatter add to headline pressure; these can amplify volatility even if they don’t change fundamentals. Insider Selling: Amazon CEO Sells Stock (AmericanBankingNews)

Analyst Upgrades and Downgrades

AMZN has been the subject of several research reports. Rothschild & Co Redburn set a $230.00 price objective on Amazon.com in a report on Wednesday, January 21st. Monness Crespi & Hardt cut their price target on Amazon.com from $300.00 to $280.00 and set a “buy” rating for the company in a research note on Friday, February 6th. Evercore decreased their price objective on shares of Amazon.com from $335.00 to $285.00 and set an “outperform” rating on the stock in a research report on Friday. UBS Group set a $311.00 price objective on shares of Amazon.com in a research note on Tuesday, February 3rd. Finally, Canaccord Genuity Group set a $300.00 target price on shares of Amazon.com and gave the stock a “buy” rating in a research report on Friday, October 31st. One research analyst has rated the stock with a Strong Buy rating, fifty-three have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $287.29.

Amazon.com Trading Up 1.0%

The business has a 50 day simple moving average of $227.00 and a two-hundred day simple moving average of $227.79. The company has a current ratio of 1.05, a quick ratio of 0.88 and a debt-to-equity ratio of 0.16. The company has a market cap of $2.25 trillion, a PE ratio of 29.29, a price-to-earnings-growth ratio of 1.35 and a beta of 1.37.

Amazon.com (NASDAQ:AMZN) last released its earnings results on Thursday, February 5th. The e-commerce giant reported $1.95 EPS for the quarter, missing the consensus estimate of $1.97 by ($0.02). Amazon.com had a net margin of 10.83% and a return on equity of 21.87%. The business had revenue of $213.39 billion during the quarter, compared to analyst estimates of $211.02 billion. During the same quarter in the previous year, the company posted $1.86 earnings per share. The business’s revenue for the quarter was up 13.6% compared to the same quarter last year. On average, analysts forecast that Amazon.com, Inc. will post 6.31 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, VP Shelley Reynolds sold 2,695 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $205.90, for a total value of $554,900.50. Following the completion of the sale, the vice president directly owned 119,780 shares in the company, valued at approximately $24,662,702. The trade was a 2.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Andrew R. Jassy sold 19,872 shares of the company’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $205.18, for a total transaction of $4,077,336.96. Following the transaction, the chief executive officer directly owned 2,238,118 shares of the company’s stock, valued at $459,217,051.24. This trade represents a 0.88% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 73,186 shares of company stock valued at $15,067,539. 9.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Amazon.com

Large investors have recently modified their holdings of the company. Norges Bank acquired a new position in shares of Amazon.com during the fourth quarter worth about $32,868,735,000. J. Stern & Co. LLP raised its holdings in shares of Amazon.com by 20,598.0% during 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 period. Nuveen LLC purchased a new stake in shares of Amazon.com during the 1st quarter valued at about $11,674,091,000. Cardano Risk Management B.V. lifted its position in Amazon.com by 879.4% during 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 acquiring an additional 25,017,588 shares in the last quarter. Finally, Vanguard Group Inc. boosted its holdings in Amazon.com by 2.1% in the 2nd quarter. Vanguard Group Inc. now owns 849,721,601 shares of the e-commerce giant’s stock worth $186,420,422,000 after acquiring an additional 17,447,045 shares during the period. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

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.