TDAX

24.8600.57%

Amazon.com (NASDAQ:AMZN) Shares Climb 1.9% - Should You Buy?

LongbridgeAII'm LongbridgeAI, I can summarize articles.

Amazon shares rose 1.9% to $256.29, driven by positive analyst sentiment and strong Q2 earnings that beat estimates. Key developments include a potential $8 billion Nvidia chip financing deal to support AWS expansion, Prime Big Deal Days boosting retail activity, and an Emmy Awards streaming agreement. While analysts maintain bullish ratings with average targets around $322, concerns persist regarding heavy data center spending impacting free cash flow.

Amazon.com, Inc. (NASDAQ:AMZN)'s stock price rose 1.9% on Tuesday. The company traded as high as $256.67 and last traded at $256.29. Approximately 32,578,271 shares were traded during mid-day trading, a decline of 30% from the average daily volume of 46,751,797 shares. The stock had previously closed at $251.40.

Key Amazon.com News

  • The AI Boom’s Next Big Winners May Wear Hard Hats

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

  • Positive Sentiment: AI financing may improve capital flexibility: Amazon is reportedly exploring a structure to move approximately $8 billion of Nvidia chips into a separately financed vehicle and lease them back. The arrangement could help fund AWS expansion without carrying the full asset burden on Amazon’s balance sheet. Amazon Nvidia Chip Financing Deal
  • Positive Sentiment: Analysts remain bullish: Tigress Financial reiterated its rating and price target, while Susquehanna’s Shyam Patil expects significant upside over the next 12 months. TD Cowen also maintained a Buy rating with a $350 target, supporting the view that AMZN’s roughly 20-times earnings valuation is attractive. Amazon Analyst Commentary
  • Positive Sentiment: Prime Big Deal Days provide a near-term retail catalyst: The event is underway with discounts across electronics and other categories, potentially supporting fourth-quarter sales, customer engagement, and third-party seller activity. Prime Big Deal Days
  • Positive Sentiment: Prime Video secured a six-year Emmy Awards agreement beginning in 2027. The deal strengthens Amazon’s streaming profile and could help attract and retain Prime subscribers, although its direct financial impact is uncertain. Amazon Emmy Awards Deal
  • Positive Sentiment: Former Amazon AI leader Rohit Prasad was appointed CEO of Boston Dynamics, highlighting Amazon’s continuing influence in robotics and physical AI. Boston Dynamics Appoints Rohit Prasad
  • Neutral Sentiment: AWS continues investing heavily in AI capacity, custom chips, and power infrastructure. Falling AI costs and strong cloud demand are encouraging, but the timing and profitability of those investments remain uncertain. AWS AI Costs
  • Negative Sentiment: Commentary warns that data-center spending could push free cash flow negative and leave Amazon carrying substantial costs before new capacity produces revenue. Investors are also concerned about power constraints, permitting delays, and whether AI revenue will justify the buildout. Amazon Data Center Spending Risks
  • Negative Sentiment: CEO Douglas Herrington sold 1,000 shares under a pre-arranged Rule 10b5-1 plan. The sale represents only 0.21% of his holdings, making it a minor headline factor rather than a strong confidence signal. SEC Insider Sale Filing

Analyst Ratings Changes

A number of research analysts recently commented on the company. Wolfe Research reaffirmed an "outperform" rating and issued a $315.00 price target on shares of Amazon.com in a research note on Friday, July 31st. Morgan Stanley reaffirmed an "overweight" rating and issued a $335.00 price target (up from $330.00) on shares of Amazon.com in a report on Friday, July 31st. Tigress Financial reiterated a "buy" rating and issued a $385.00 target price (up from $315.00) on shares of Amazon.com in a research note on Tuesday. HSBC reiterated a "buy" rating and set a $310.00 price objective on shares of Amazon.com in a research note on Friday, July 31st. Finally, Royal Bank Of Canada lifted their price objective on shares of Amazon.com from $320.00 to $330.00 and gave the company an "outperform" rating in a research note on Friday, July 31st. Fifty-six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Amazon.com presently has an average rating of "Moderate Buy" and an average target price of $322.86.

  • What a $1 Billion Chip Deal Says About Amazon's AI Ambitions

Check Out Our Latest Research Report on Amazon.com

Amazon.com Trading Up 1.9%

The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03. The stock's 50 day simple moving average is $257.46 and its 200 day simple moving average is $248.76. The firm has a market cap of $2.76 trillion, a PE ratio of 20.62, a PEG ratio of 1.95 and a beta of 1.45.

  • Follow the Money: 5 AI Stocks Buying Back Shares by the Billions

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, topping analysts' consensus estimates of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. During the same period in the previous year, the business earned $1.68 EPS. The firm's revenue for the quarter was up 19.6% on a year-over-year basis. On average, sell-side analysts forecast that Amazon.com, Inc. will post 8.01 earnings per share for the current fiscal year.

Insider Transactions at Amazon.com

In other news, CEO Andrew R. Jassy sold 20,000 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $5,180,200.00. Following the completion of the sale, the chief executive officer owned 2,235,766 shares in the company, valued at approximately $579,085,751.66. This trade represents a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 1,000 shares of the business's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $251.50, for a total transaction of $251,500.00. Following the completion of the sale, the chief executive officer owned 474,681 shares in the company, valued at approximately $119,382,271.50. This trade represents a 0.21% 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. In the last 90 days, insiders have sold 71,589 shares of company stock valued at $18,580,515. 8.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. State Street Corp increased its stake in Amazon.com by 5.5% in the 2nd quarter. State Street Corp now owns 411,848,346 shares of the e-commerce giant's stock valued at $95,504,904,000 after buying an additional 21,398,025 shares during the last quarter. Auto Owners Insurance Co lifted its holdings in shares of 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 purchasing an additional 98,090,585 shares in the last quarter. Bank of America Corp DE bought a new position in Amazon.com during the second quarter valued at approximately $22,218,775,000. Bank of New York Mellon Corp bought a new position in Amazon.com during the 2nd quarter worth about $16,341,405,000. Finally, Amundi lifted its stake in Amazon.com by 3.9% during the 2nd quarter. Amundi now owns 63,822,242 shares of the e-commerce giant's stock valued at $15,211,393,000 after acquiring an additional 2,421,739 shares during the period. 72.20% of the stock is owned by institutional investors and hedge funds.

About Amazon.com

(Get Free Report)

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.

Read More

  • Five stocks we like better than Amazon.com
  • Constellation Energy’s Google Deal Shows Why Nuclear Uprates Matter for AI
  • Lamb Weston’s Turnaround Is Starting to Look Real
  • These 3 Stocks Got the Most Love From Analysts in September
  • Record French Debt Could Create Opportunities for U.S. Market Operators

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Should You Invest $1,000 in Amazon.com Right Now?

Before you consider Amazon.com, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Amazon.com wasn't on the list.

While Amazon.com currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source

Login to unlock9,323characters for free

Due to copyright restrictions, please log in to your Longbridge account to view this content.
Thank you for your understanding and support of licensed content.