Amazon.com (NASDAQ:AMZN) Shares Climb 6.2% Following Analyst Upgrade

Amazon.com, Inc. (NASDAQ:AMZN)’s share price rose 6.2% on Wednesday after Freedom Broker raised their price target on the stock from $255.00 to $330.00. Freedom Broker currently has a buy rating on the stock. Amazon.com traded as high as $271.49 and last traded at $266.3090. 92,905,790 shares traded hands during trading, an increase of 99% from the average daily volume of 46,606,063 shares. The stock had previously closed at $250.69.

AMZN has been the subject of several other reports. Needham & Company LLC reaffirmed a “buy” rating and issued a $300.00 target price on shares of Amazon.com in a research report on Friday, July 31st. The Goldman Sachs Group restated a “conviction-buy” rating and issued a $370.00 price objective on shares of Amazon.com in a research note on Friday, October 30th. Cantor Fitzgerald reduced their price objective on shares of Amazon.com from $310.00 to $280.00 and set an “overweight” rating for the company in a report on Friday, October 30th. Robert W. Baird set a $310.00 target price on shares of Amazon.com and gave the company an “outperform” rating in a research report on Friday, July 31st. Finally, Raymond James Financial reissued an “outperform” rating and issued a $250.00 target price on shares of Amazon.com in a research note on Friday, October 30th. Two research analysts have rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $321.02.

Insider Activity at Amazon.com

In related news, CEO Andrew Jassy sold 20,000 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 $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 $579,085,751.66. This trade represents a 0.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the completion of the transaction, the senior vice president owned 41,190 shares of the company’s stock, valued at $10,699,926.30. This trade represents a 18.35% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 70,589 shares of company stock valued at $18,302,125 in the last three months. 8.90% of the stock is currently owned by corporate insiders.

Amazon.com News Summary

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

• Positive Sentiment: Amazon rallied alongside other major cloud companies amid a broader tech-market rebound after the midterm elections. Investors also pointed to tight cloud-computing capacity, which could give Amazon and Microsoft room to raise prices. Read article
• Positive Sentiment: AWS growth reportedly accelerated to nearly 40%, while its $578 billion backlog signals substantial future demand. Phillip Securities raised its price target to $330, and management expects AWS growth above 40% in 2027 and 2028. Read article
• Positive Sentiment: Amazon introduced a merchant workspace that lets eligible sellers connect their stores to Shop Direct, potentially making more products discoverable through Alexa for Shopping as well as Amazon’s site and app. Read article
• Neutral Sentiment: Reports of local data-center restrictions raised questions about the pace of AI infrastructure expansion. Some investors appear to expect Amazon can redirect construction to other locations, but regulation and community opposition could still affect build-out plans. Read article
• Negative Sentiment: Amazon’s roughly $220 billion AI investment plan is weighing on free cash flow, leaving investors focused on whether future returns will justify the spending. The recent earnings report also missed consensus EPS and revenue estimates, according to the provided background. Read article
• Negative Sentiment: AI shopping agents could divert customer activity away from retailers’ own platforms, potentially putting pressure on Amazon’s advertising revenue and access to shopping data. Read article

Institutional Trading of Amazon.com

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AMZN. Trust Asset Management LLC boosted its position in shares of Amazon.com by 3.3% in the 2nd quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock worth $26,000 after purchasing an additional 3,414 shares during the last quarter. TOP Private Wealth LLC. bought a new position in Amazon.com during the second quarter worth about $29,000. Bard Associates Inc. acquired a new position in shares of Amazon.com during the 2nd quarter worth about $32,000. Longfellow Investment Management Co. LLC acquired a new position in shares of Amazon.com during the 2nd quarter worth about $33,000. Finally, Atomic Invest LLC increased its stake in shares of Amazon.com by 41.2% in the 2nd quarter. Atomic Invest LLC now owns 168 shares of the e-commerce giant’s stock valued at $40,000 after acquiring an additional 49 shares during the last quarter. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Amazon.com Trading Up 6.2%

The company has a market capitalization of $2.88 trillion, a P/E ratio of 21.53, a PEG ratio of 1.86 and a beta of 1.49. The business has a 50 day moving average price of $253.79 and a 200 day moving average price of $243.18. The company has a current ratio of 0.99, a quick ratio of 0.82 and a debt-to-equity ratio of 0.28.

Amazon.com (NASDAQ:AMZN) last issued its quarterly earnings data on Thursday, October 29th. The e-commerce giant reported $1.89 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.97 by ($0.08). The firm had revenue of $201.94 billion for the quarter, compared to analyst estimates of $202.22 billion. Amazon.com had a net margin of 16.90% and a return on equity of 15.72%. The firm’s revenue for the quarter was up 12.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.95 EPS. Analysts anticipate that Amazon.com, Inc. will post 7.84 EPS for the current year.

Amazon.com Company Profile

Amazon.com, Inc is a global technology and e-commerce company founded by Jeff Bezos in 1994. Originally launched as an online bookstore, the company has expanded into a broad digital marketplace offering consumer products across numerous categories, including electronics, household goods, apparel, groceries and other merchandise. Amazon also sells products under its own brands and provides logistics, fulfillment and delivery services that support its retail operations and third-party sellers.

The company’s principal businesses include online and physical retail, Amazon Web Services (AWS), digital advertising, subscription services and consumer technology.