Erste Group Bank Predicts Stronger Earnings for Amazon.com

Amazon.com, Inc. (NASDAQ:AMZN – Free Report) – Equities research analysts at Erste Group Bank lifted their FY2027 earnings per share estimates for Amazon.com in a research report issued on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now expects that the e-commerce giant will post earnings per share of $10.71 for the year, up from their prior estimate of $10.54. The consensus estimate for Amazon.com’s current full-year earnings is $8.03 per share.

Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, topping analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%. The business had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. During the same period last year, the company posted $1.68 earnings per share. Amazon.com’s quarterly revenue was up 19.6% compared to the same quarter last year.

A number of other research firms have also recently commented on AMZN. Tigress Financial reiterated a “buy” rating and set a $385.00 target price (up from $315.00) on shares of Amazon.com in a research note on Tuesday, October 6th. Raymond James Financial restated an “outperform” rating and set a $390.00 price target (up from $280.00) on shares of Amazon.com in a research report on Friday, July 31st. Wells Fargo & Company set a $329.00 price objective on shares of Amazon.com and gave the stock an “overweight” rating in a research report on Monday. Pivotal Research reaffirmed a “buy” rating and issued a $333.00 price objective (up from $320.00) on shares of Amazon.com in a research report on Friday, July 31st. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $375.00 target price (up from $335.00) on shares of Amazon.com in a research note on Friday, July 31st. Fifty-six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Amazon.com presently has a consensus rating of “Moderate Buy” and an average price target of $322.53.

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Amazon.com Stock Down 1.1%

Shares of NASDAQ:AMZN opened at $259.53 on Tuesday. The company has a market capitalization of $2.80 trillion, a PE ratio of 20.88, a price-to-earnings-growth ratio of 2.03 and a beta of 1.45. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. The business has a fifty day moving average price of $258.34 and a two-hundred day moving average price of $250.53. Amazon.com has a 1 year low of $196.00 and a 1 year high of $287.20.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of AMZN. Auto Owners Insurance Co boosted its stake in Amazon.com by 27,376.7% during the fourth 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 period. Bank of America Corp DE bought a new position in Amazon.com in the 2nd quarter worth about $22,218,775,000. Bank of New York Mellon Corp bought a new position in Amazon.com in the 2nd quarter worth about $16,341,405,000. Legal & General Group Plc purchased a new stake in shares of Amazon.com in the 2nd quarter valued at about $12,831,376,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Amazon.com in the 2nd quarter valued at about $6,631,466,000. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CEO Matthew S. Garman sold 14,541 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.06, for a total value of $3,766,991.46. Following the sale, the chief executive officer directly owned 17,794 shares in the company, valued at approximately $4,609,713.64. The trade was a 44.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,343 shares of the company’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $606,860.43. Following the sale, the vice president directly owned 119,780 shares in the company, valued at approximately $31,024,217.80. This trade represents a 1.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 71,589 shares of company stock worth $18,580,515 in the last quarter. 8.90% of the stock is currently owned by company insiders.

Trending Headlines about Amazon.com

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

  • Positive Sentiment: Amazon is reportedly negotiating to acquire AI startup Decart for approximately $7 billion. Decart develops software that helps customers use different AI chips, potentially strengthening AWS, Amazon’s custom-chip strategy and its competitive position in AI infrastructure. The deal remains unconfirmed and could still collapse. Amazon in Talks to Buy AI Startup Decart for Around $7 Billion
  • Positive Sentiment: Analysts and market commentators continue to highlight accelerating AWS growth, expanding advertising revenue and a large cloud backlog as supports for Amazon’s long-term earnings outlook. Cantor Fitzgerald maintained an overweight rating despite reducing its price target to $310 from $320, leaving substantial implied upside based on the supplied reference price. Amazon.com Price Target Lowered
  • Positive Sentiment: Amazon’s partnership with Generac underscores continued demand for data-center power equipment, indirectly supporting the broader infrastructure expansion that is driving AWS investment. The announcement benefits Generac more directly than Amazon. Generac Entered a Massive Deal With Amazon
  • Neutral Sentiment: Amazon is also considering bundling its Leo satellite-internet service with Prime, a potentially significant new growth avenue but one that remains speculative and could require sizable investment. Amazon Could Bundle Satellite Internet With Prime
  • Negative Sentiment: Investors are focused on the enormous cost of the AI buildout: Amazon, Microsoft, Meta and Alphabet are expected to spend roughly $750 billion on capital expenditures this year. The spending may boost future AWS growth, but it raises concerns about free cash flow, returns on invested capital and valuation.
  • Negative Sentiment: Technology stocks broadly declined, creating additional pressure on AMZN. The Decart acquisition reports also introduce execution and capital-allocation risk, while reports about Amazon’s use of customer purchase data to infer sensitive personal traits could renew privacy and regulatory concerns. Sector Update: Tech Stocks Fall Monday

About Amazon.com

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Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.

Further Reading

Earnings History and Estimates for Amazon.com (NASDAQ:AMZN)

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