Amazon.com, Inc. (NASDAQ:AMZN)’s share price was down 1.5% during trading on Thursday . The stock traded as low as $255.02 and last traded at $256.26. 35,654,552 shares were traded during mid-day trading, a decline of 27% from the average session volume of 48,630,262 shares. The stock had previously closed at $260.28.
Amazon.com News Roundup
Here are the key news stories impacting Amazon.com this week:
- Positive Sentiment: Expanded Nvidia partnership reinforces AWS’s AI growth outlook. Amazon will reportedly add 2 million Nvidia GPUs to its data centers by 2028, bringing its total planned commitment to roughly 3 million chips. The investment reflects surging demand for AI computing and could support future AWS revenue. TechCrunch article
- Positive Sentiment: Analysts remain bullish on Amazon’s long-term prospects. Citizens reiterated a Market Outperform rating and a $315 price target, while broader coverage points to strong AI-cloud momentum and Amazon’s potential to become one of the first companies to reach $1 trillion in annual sales. Yahoo Finance article
- Positive Sentiment: New growth initiatives could broaden AWS monetization. AWS acquired DuckLabs, the team behind open-source analytics database DuckDB, to strengthen cloud data and analytics offerings. Amazon and Walmart are also expanding onsite advertising, potentially increasing high-margin advertising revenue. DuckLabs acquisition article
- Neutral Sentiment: Amazon is reportedly negotiating to host Moonshot AI’s Kimi K3 model. A revenue-sharing agreement could add AI workloads to AWS, but the talks face uncertainty from potential U.S. restrictions involving the Chinese AI company. Reuters article
- Negative Sentiment: Heavy AI infrastructure spending is weighing on cash flow. Although AWS growth is accelerating, Amazon’s expanding data-center investment has pushed free cash flow sharply lower. Investors want evidence that the multibillion-dollar spending program will produce sufficient returns and eventually rebuild cash generation.
- Negative Sentiment: Multiple senior executives sold shares. CEO Andy Jassy, AWS CEO Matt Garman, CFO Brian Olsavsky and other executives collectively sold more than $15 million of stock. The transactions were made under pre-arranged Rule 10b5-1 plans, reducing their significance, but the cluster of sales may still weigh on sentiment. Insider sales article
Analysts Set New Price Targets
Several equities analysts have weighed in on AMZN shares. BNP Paribas Exane raised their target price on shares of Amazon.com from $320.00 to $345.00 and gave the company an “outperform” rating in a report on Tuesday, May 5th. Jefferies Financial Group reiterated a “buy” rating on shares of Amazon.com in a research report on Thursday, June 18th. Citizens Jmp reissued a “market outperform” rating and set a $315.00 price objective on shares of Amazon.com in a research note on Friday, July 31st. Maxim Group lifted their price objective on Amazon.com from $290.00 to $315.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Finally, DZ Bank increased their target price on Amazon.com from $295.00 to $320.00 and gave the company a “buy” rating in a report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, Amazon.com currently has an average rating of “Moderate Buy” and a consensus target price of $322.39.
Amazon.com Price Performance
The stock has a market capitalization of $2.76 trillion, a price-to-earnings ratio of 20.62, a price-to-earnings-growth ratio of 1.74 and a beta of 1.45. The company has a 50 day moving average of $250.94 and a 200 day moving average of $239.94. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23.
Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.82 by $3.93. The firm had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The firm’s quarterly revenue was up 19.6% on a year-over-year basis. During the same period last year, the company earned $1.68 EPS. As a group, equities research analysts forecast that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.
Insiders Place Their Bets
In related news, VP Shelley Reynolds sold 2,343 shares of the firm’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $606,860.43. Following the sale, the vice president directly owned 119,780 shares of the company’s stock, valued at approximately $31,024,217.80. This trade represents a 1.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew R. Jassy sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the completion of the sale, the chief executive officer owned 2,235,766 shares of the company’s stock, valued at approximately $579,085,751.66. The trade was a 0.89% 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. In the last three months, insiders sold 71,589 shares of company stock valued at $18,580,205. 8.90% of the stock is currently owned by corporate insiders.
Institutional Inflows and Outflows
Several large investors have recently made changes to their positions in the company. Trust Asset Management LLC increased its position in shares of Amazon.com by 3.3% in the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock worth $26,000 after acquiring an additional 3,414 shares in the last quarter. TOP Private Wealth LLC. acquired a new position in shares of Amazon.com during the 2nd quarter valued at $29,000. Bard Associates Inc. acquired a new position in shares of Amazon.com during the 2nd quarter valued at $32,000. Longfellow Investment Management Co. LLC purchased a new stake in Amazon.com during the 2nd quarter worth $33,000. Finally, MilWealth Group LLC increased its holdings in Amazon.com by 79.0% in the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after purchasing an additional 79 shares in the last quarter. 72.20% of the stock is owned by hedge funds and other institutional investors.
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.
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