Amazon.com (NASDAQ:AMZN) Trading 1.6% Higher – Should You Buy?
by Mitch Edgeman · The Markets DailyShares of Amazon.com, Inc. (NASDAQ:AMZN) shot up 1.6% during trading on Tuesday . The stock traded as high as $215.70 and last traded at $215.20. 44,857,045 shares changed hands during trading, a decline of 14% from the average session volume of 51,974,500 shares. The stock had previously closed at $211.74.
Key Amazon.com News
Here are the key news stories impacting Amazon.com this week:
- Positive Sentiment: CEO Andy Jassy said AI could lift AWS revenue to ~$600B over the next decade — a major long‑term growth thesis that supports higher valuation for AMZN’s cloud business. Reuters: Jassy sees AWS $600B
- Positive Sentiment: Prime Day reportedly moved to June — a tactical step to pull demand into Q2 and potentially boost near‑term revenue and advertising monetization. MarketBeat: Prime Day shift
- Positive Sentiment: Amazon continues product and geographic expansion in AI with Alexa+ launching in the U.K., supporting international growth for voice/AI services. PYMNTS: Alexa+ UK debut
- Positive Sentiment: New logistics and service rollouts (1‑hour shipping expansion) aim to capture market share and boost unit economics in urban markets. Yahoo Finance: 1-hour shipping
- Neutral Sentiment: An appeals court paused a lower‑court order blocking Perplexity’s shopping bots from using Amazon — eases immediate legal friction but keeps the broader platform/third‑party access dispute unresolved. Seeking Alpha: Perplexity appeals court
- Neutral Sentiment: Analysts revised hyperscaler debt forecasts after Amazon’s large bond sale — signals heavy capex to fund AI/data center growth; supportive for future revenue but raises leverage and near‑term margin concerns. Reuters: analysts revise debt forecasts
- Negative Sentiment: Reports Amazon plans to cut USPS package volume dramatically — signals a costly logistics transition and near‑term execution risks that could pressure costs and relationships. WSJ: Amazon to slash USPS volume
- Negative Sentiment: Microsoft is reportedly weighing legal action over a reported $50B Amazon–OpenAI cloud deal — potential litigation adds uncertainty to a high‑value partnership that could materially affect AWS enterprise positioning. Reuters: Microsoft may sue over Amazon‑OpenAI
- Negative Sentiment: Wolfe Research trimmed its price target slightly (keeps Outperform) — a modest signal that near‑term valuation upside is being reassessed amid higher spending. MarketScreener: Wolfe lowers PT
Wall Street Analyst Weigh In
A number of equities research analysts have issued reports on the company. The Goldman Sachs Group increased their price target on Amazon.com from $290.00 to $300.00 and gave the stock a “buy” rating in a research note on Wednesday, January 14th. Daiwa Securities Group dropped their price objective on Amazon.com from $300.00 to $280.00 and set a “buy” rating for the company in a research note on Wednesday, February 11th. Evercore cut their target price on Amazon.com from $335.00 to $285.00 and set an “outperform” rating for the company in a research report on Friday, February 27th. Raymond James Financial decreased their target price on Amazon.com from $260.00 to $225.00 and set an “outperform” rating on the stock in a research note on Friday, February 6th. Finally, Arete Research upped their price target on Amazon.com from $283.00 to $285.00 and gave the stock a “buy” rating in a research note on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, fifty-three have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $286.84.
View Our Latest Research Report on Amazon.com
Amazon.com Stock Performance
The firm has a market capitalization of $2.24 trillion, a PE ratio of 29.11, a P/E/G ratio of 1.61 and a beta of 1.40. The business has a 50-day simple moving average of $221.35 and a 200-day simple moving average of $226.32. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.05 and a quick ratio of 0.88.
Amazon.com (NASDAQ:AMZN – Get Free Report) last announced its earnings results on Thursday, February 5th. The e-commerce giant reported $1.95 EPS for the quarter, missing analysts’ consensus estimates of $1.97 by ($0.02). Amazon.com had a return on equity of 21.87% and a net margin of 10.83%.The company had revenue of $213.39 billion during the quarter, compared to analysts’ expectations of $211.02 billion. During the same quarter last year, the firm posted $1.86 EPS. Amazon.com’s revenue for the quarter was up 13.6% compared to the same quarter last year. Equities research analysts expect that Amazon.com, Inc. will post 6.31 earnings per share for the current fiscal year.
Insider Buying and Selling at Amazon.com
In related news, CEO Andrew R. Jassy sold 19,872 shares of Amazon.com stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $205.18, for a total transaction of $4,077,336.96. Following the completion of the transaction, the chief executive officer directly owned 2,238,118 shares of the company’s stock, valued at approximately $459,217,051.24. The trade was a 0.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Matthew S. Garman sold 17,751 shares of the company’s stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $205.22, for a total transaction of $3,642,860.22. Following the transaction, the chief executive officer owned 9,405 shares in the company, valued at $1,930,094.10. The trade was a 65.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 71,686 shares of company stock valued at $14,688,739. Insiders own 9.70% of the company’s stock.
Institutional Inflows and Outflows
Large investors have recently modified their holdings of the business. Brighton Jones LLC lifted its holdings in Amazon.com by 10.9% during the 4th quarter. Brighton Jones LLC now owns 4,036,091 shares of the e-commerce giant’s stock valued at $885,478,000 after buying an additional 397,007 shares in the last quarter. Revolve Wealth Partners LLC increased its position in shares of Amazon.com by 4.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 25,045 shares of the e-commerce giant’s stock worth $5,495,000 after acquiring an additional 986 shares during the period. Bank Pictet & Cie Europe AG raised its stake in shares of Amazon.com by 2.8% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,016,869 shares of the e-commerce giant’s stock valued at $442,481,000 after acquiring an additional 54,987 shares in the last quarter. Highview Capital Management LLC DE raised its stake in shares of Amazon.com by 5.5% during the fourth quarter. Highview Capital Management LLC DE now owns 28,975 shares of the e-commerce giant’s stock valued at $6,357,000 after acquiring an additional 1,518 shares in the last quarter. Finally, Liberty Square Wealth Partners LLC purchased a new stake in shares of Amazon.com in the fourth quarter valued at approximately $2,153,000. Hedge funds and other institutional investors own 72.20% of the company’s stock.
About Amazon.com
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.