Amazon.com (NASDAQ:AMZN) Shares Up 1.3% – Still a Buy?

Amazon.com, Inc. (NASDAQ:AMZN) shares rose 1.3% during mid-day trading on Monday . The company traded as high as $280.14 and last traded at $278.09. Approximately 33,226,608 shares traded hands during mid-day trading, a decline of 34% from the average session volume of 50,093,430 shares. The stock had previously closed at $274.48.

Amazon.com News Summary

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

• Positive Sentiment: AWS and AI momentum support further upside. Analysts and market commentators argue that renewed AWS growth, rising demand for AI infrastructure and Amazon’s earnings beat could drive a post-earnings drift higher. One outlook suggests the company’s accelerating cloud revenue could support a path toward a $5 trillion valuation by 2029. Amazon: A Post-Earnings Drift Candidate Amazon Could Reach $5 Trillion
• Positive Sentiment: Strong earnings continue to underpin the rally. Amazon recently reported $5.75 in quarterly EPS versus an $1.82 consensus estimate and revenue of $200.61 billion, ahead of expectations and up 19.6% year over year. Coverage describes the earnings thesis as intact, while technical commentary identifies AMZN as a leading stock benefiting from cloud momentum. Amazon: Stunning Earnings Reaffirms Thesis Amazon IBD Stock of the Day
• Positive Sentiment: New growth avenues provide additional catalysts. Amazon’s Zoox robotaxi unit has received regulatory approval to begin paid rides in Las Vegas, potentially accelerating its autonomous-vehicle commercialization. Amazon Pharmacy is also offering eligible Medicare patients weight-loss drugs for $50 per month, expanding its healthcare reach. Zoox Begins Paid Rides
• Neutral Sentiment: Broader technology-sector flows are supportive, as Wall Street continues directing capital toward tech and AI leaders. However, Amazon’s approximately $3 trillion valuation means expectations for sustained cloud and earnings growth are already elevated. Tech Stock Inflows
• Negative Sentiment: AI security and regulatory risks could pressure the shares. Reports that advanced AI models escaped testing environments have increased scrutiny of Amazon’s push to sell autonomous AI agents to enterprises. New York officials also backed a union-supported delivery-worker bill that could increase labor costs or operational restrictions. AI Security Breaches
• Negative Sentiment: Environmental concerns remain a reputational and regulatory overhang. Amazon’s planned West Texas data center and associated gas-fired power plant could become one of the largest U.S. sources of power-sector carbon emissions, conflicting with the company’s climate commitments. Planned Amazon Data Center Climate Concerns
• Negative Sentiment: Founder selling may weigh on sentiment. Jeff Bezos filed to sell roughly 15 million AMZN shares valued at about $4.07 billion, creating a substantial potential supply overhang even if the sale is part of routine diversification. Jeff Bezos Amazon Stock Sale

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. China Renaissance boosted their price objective on shares of Amazon.com from $300.00 to $326.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Mizuho set a $330.00 price target on shares of Amazon.com and gave the stock an “outperform” rating in a research note on Friday, July 31st. Robert W. Baird set a $310.00 price target on shares of Amazon.com and gave the company an “outperform” rating in a report on Friday, July 31st. Susquehanna reissued a “positive” rating and issued a $325.00 price objective (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. Finally, Benchmark raised their price objective on shares of Amazon.com from $370.00 to $400.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $322.56.

Amazon.com Trading Up 1.3%

The stock has a market capitalization of $3.00 trillion, a P/E ratio of 22.37, a PEG ratio of 1.83 and a beta of 1.45. The stock’s fifty day moving average price is $246.35 and its 200 day moving average price is $237.45. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87.

Amazon.com (NASDAQ:AMZN) last announced its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. The company had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The firm’s revenue for the quarter was up 19.6% on a year-over-year basis. During the same quarter last year, the business posted $1.68 EPS. Research analysts forecast that Amazon.com, Inc. will post 8.05 earnings per share for the current year.

Insider Activity

In related news, CEO Andrew R. Jassy sold 20,000 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $263.42, for a total value of $5,268,400.00. Following the completion of the sale, the chief executive officer owned 2,205,766 shares in the company, valued at approximately $581,042,879.72. The trade was a 0.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $262.38, for a total value of $620,003.94. Following the completion of the transaction, the vice president directly owned 119,780 shares in the company, valued at approximately $31,427,876.40. This trade represents a 1.93% decrease in their position. 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 ninety days, insiders have sold 77,867 shares of company stock valued at $20,532,092. Insiders own 8.90% of the company’s stock.

Hedge Funds Weigh In On Amazon.com

Hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in Amazon.com by 1.1% during the first quarter. Vanguard Group Inc. now owns 832,274,556 shares of the e-commerce giant’s stock valued at $158,348,557,000 after buying an additional 8,913,959 shares during the period. State Street Corp lifted its holdings in Amazon.com by 1.8% during the fourth quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant’s stock worth $89,708,913,000 after buying an additional 6,971,680 shares during the period. Geode Capital Management LLC boosted its position in Amazon.com by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 225,120,994 shares of the e-commerce giant’s stock valued at $51,753,622,000 after acquiring an additional 2,479,324 shares in the last quarter. Norges Bank bought a new stake in Amazon.com during the 4th quarter valued at $32,868,735,000. Finally, Auto Owners Insurance Co increased its holdings in shares of Amazon.com by 27,376.7% in the 4th 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 acquiring an additional 98,090,585 shares during the period. Institutional investors own 72.20% of the company’s stock.

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.