Amazon.com (NASDAQ:AMZN) Posts Earnings Results, Misses Expectations By $0.08 EPS

Amazon.com (NASDAQ:AMZN) posted its earnings results on Thursday. The e-commerce giant reported $1.89 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.97 by ($0.08), FiscalAI reports. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company had revenue of $201.94 billion during the quarter, compared to analyst estimates of $202.22 billion.

Amazon.com Stock Performance

NASDAQ AMZN traded down $10.81 on Thursday, reaching $243.79. The stock had a trading volume of 65,185,562 shares, compared to its average volume of 45,900,746. Amazon.com has a 1-year low of $196.00 and a 1-year high of $287.20. The firm has a fifty day moving average of $255.11 and a two-hundred day moving average of $243.14. 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 company has a market cap of $2.63 trillion, a P/E ratio of 19.61, a price-to-earnings-growth ratio of 2.04 and a beta of 1.45.

Amazon.com News Summary

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

• Positive Sentiment: AWS demand remains strong. Analysts expect AWS revenue growth of roughly 38%, while Amazon has said much of its cloud capacity is booked through this year and into 2027. A reported $496 billion backlog and large customer commitments, including Anthropic’s minimum-spending agreement, support the long-term cloud outlook. Amazon to report Q3 earnings after the bell
• Positive Sentiment: AI infrastructure demand is creating strategic opportunities. Amazon’s long-term power agreements, including support for more than $3 billion of investment at Maryland’s Calvert Cliffs nuclear plant, could help secure electricity for future data centers. The company is also expanding satellite connectivity following regulatory approval for its Globalstar transaction. Amazon wins FCC approval for Globalstar deal
• Neutral Sentiment: Tonight’s earnings are the key catalyst. Investors will focus on AWS growth, operating margins, capital expenditures, free cash flow, and management’s outlook for AI monetization. Options markets imply an unusually large post-earnings move, reflecting elevated uncertainty. Expected Amazon earnings move
• Negative Sentiment: AI spending and cash flow are the central concern. Amazon reportedly invested approximately $53 billion in AI this year, while free cash flow turned negative. Its broader 2026 spending plan could approach $220 billion, increasing pressure on management to demonstrate near-term returns from data-center and AI investment. Amazon AI spending and Q3 earnings preview
• Negative Sentiment: Broader technology-sector weakness is raising the bar. Alphabet’s sharp post-earnings selloff, linked to heavy AI spending and renewed cash-flow concerns, has made investors more sensitive to AWS margins and Amazon’s spending guidance.
• Negative Sentiment: Amazon’s retail moat may face new competition. Investor Gene Munster warned that AI shopping agents could become the starting point for purchases, potentially weakening Amazon’s control over product discovery and customer traffic. Gene Munster warns AI bots threaten Amazon shopping

Insiders Place Their Bets

In other news, CEO Douglas J. Herrington sold 6,362 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $1,647,821.62. Following the completion of the sale, the chief executive officer owned 476,681 shares in the company, valued at $123,465,145.81. This represents a 1.32% decrease in their ownership of the stock. The sale 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 9,258 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $259.77, for a total value of $2,404,950.66. Following the transaction, the senior vice president owned 41,190 shares of the company’s stock, valued at $10,699,926.30. The trade was a 18.35% 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. Insiders have sold 71,589 shares of company stock worth $18,580,515 over the last quarter. 8.90% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Susquehanna reaffirmed a “positive” rating on shares of Amazon.com in a report on Tuesday, October 6th. Oppenheimer restated an “outperform” rating on shares of Amazon.com in a research report on Friday, July 31st. The Goldman Sachs Group restated a “buy” rating and set a $375.00 price target (up from $335.00) on shares of Amazon.com in a report on Friday, July 31st. HSBC reissued a “buy” rating and issued a $310.00 price target on shares of Amazon.com in a research report on Friday, July 31st. Finally, Monness Crespi & Hardt increased their price objective on Amazon.com from $315.00 to $330.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Fifty-seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $325.12.

About Amazon.com

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.