Amazon.com, Inc. (NASDAQ:AMZN)’s share price traded down 1.2% on Friday . The company traded as low as $233.59 and last traded at $238.55. 50,986,182 shares traded hands during trading, an increase of 6% from the average session volume of 48,038,730 shares. The stock had previously closed at $241.51.
Amazon.com News Summary
Here are the key news stories impacting Amazon.com this week:
- Positive Sentiment: Amazon continues to strengthen its AI and cloud position, with reports saying its custom chips are seeing strong demand in AWS and that its growing AI capabilities could help drive long-term upside. Article Title
- Positive Sentiment: Amazon expanded its logistics moat by launching less-than-truckload freight service for all U.S. businesses, which could improve its supply-chain offering and deepen its role in e-commerce infrastructure. Article Title
- Positive Sentiment: Amazon also signed a major patent license agreement with InterDigital covering Prime Video and devices, removing legal uncertainty and reinforcing its streaming and devices ecosystem. Article Title
- Neutral Sentiment: Analysts and commentators remain constructive on Amazon’s long-term fundamentals, pointing to e-commerce efficiency, AWS AI dominance, and potential value in its Anthropic investment, but these are more long-term catalysts than immediate trading drivers. Article Title
- Negative Sentiment: Investors are worried about Amazon’s heavy AI capital spending and new borrowing, which may pressure margins and free cash flow before the payback shows up. Article Title
- Negative Sentiment: Broader market pieces note that Amazon has lagged the S&P 500 recently and that its valuation has been hit by concerns over capex and softer near-term sentiment. Article Title
Wall Street Analysts Forecast Growth
A number of analysts have weighed in on the company. Wells Fargo & Company set a $312.00 price objective on Amazon.com and gave the stock an “overweight” rating in a research report on Wednesday, May 20th. Citigroup reaffirmed a “market outperform” rating on shares of Amazon.com in a research report on Monday, June 1st. Tigress Financial increased their price objective on Amazon.com from $305.00 to $315.00 and gave the stock a “buy” rating in a research report on Wednesday, March 25th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $330.00 price objective (up from $280.00) on shares of Amazon.com in a research report on Thursday, April 30th. Finally, BMO Capital Markets increased their price objective on Amazon.com from $310.00 to $315.00 and gave the stock an “outperform” rating in a research report on Thursday, April 23rd. 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 MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $312.78.
Amazon.com Trading Down 1.2%
The firm has a market capitalization of $2.57 trillion, a PE ratio of 28.53, a P/E/G ratio of 1.79 and a beta of 1.44. The business has a 50 day moving average price of $253.49 and a 200-day moving average price of $233.62. The company has a current ratio of 1.18, a quick ratio of 1.01 and a debt-to-equity ratio of 0.27.
Amazon.com (NASDAQ:AMZN – Get Free Report) last released its quarterly earnings data 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 firm had revenue of $181.52 billion during the quarter, compared to the consensus estimate of $177.28 billion. During the same period last year, the business posted $1.59 EPS. Amazon.com’s quarterly revenue was up 16.6% on a year-over-year basis. Analysts expect that Amazon.com, Inc. will post 7.71 earnings per share for the current year.
Insider Transactions at Amazon.com
In related news, CEO Andrew R. Jassy sold 31,352 shares of the firm’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $275.00, for a total value of $8,621,800.00. Following the completion of the transaction, the chief executive officer directly owned 2,175,766 shares of the company’s stock, valued at $598,335,650. This trade represents a 1.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the firm’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 value of $2,489,273.10. Following the completion of the transaction, the senior vice president directly owned 41,190 shares of the company’s stock, valued at $11,060,750.70. The trade was a 18.37% 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. Over the last quarter, insiders sold 195,774 shares of company stock valued at $51,614,434. Company insiders own 8.90% of the company’s stock.
Hedge Funds Weigh In On Amazon.com
Hedge funds have recently bought and sold shares of the company. MilWealth Group LLC increased its position in Amazon.com by 79.0% during the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock worth $41,000 after buying an additional 79 shares in the last quarter. Lifetime Wealth Management P.C. purchased a new position in Amazon.com during the fourth quarter worth $45,000. Elkhorn Partners Limited Partnership increased its position in Amazon.com by 900.0% during the fourth quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock worth $46,000 after buying an additional 180 shares in the last quarter. Fairway Wealth LLC increased its position in Amazon.com by 95.6% during the fourth quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant’s stock worth $51,000 after buying an additional 108 shares in the last quarter. Finally, Prudent Man Investment Management Inc. increased its position in Amazon.com by 87.7% during the fourth quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant’s stock worth $53,000 after buying an additional 107 shares in the last quarter. 72.20% of the stock is 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.
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