Amazon.com (NASDAQ:AMZN) Trading 2.5% Higher – Still a Buy?

Amazon.com, Inc. (NASDAQ:AMZN) rose 2.5% on Friday . The stock traded as high as $233.90 and last traded at $232.69. 241,373,768 shares were traded during trading, an increase of 381% from the average session volume of 50,228,629 shares. The stock had previously closed at $227.01.

Amazon.com News Summary

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

• Positive Sentiment: AWS raised prices on AI GPU and cloud capacity reservations, which should help margins and shows Amazon is benefiting from strong AI demand and tighter chip supply. Forget Apple. Amazon just made AI a lot more expensive.
• Positive Sentiment: Reports say Prime Day is on track to generate record sales, reinforcing Amazon’s e-commerce momentum and supporting investor confidence in near-term retail results. Amazon’s Prime Day Forecast to Generate a Record $26 Billion
• Positive Sentiment: Amazon said it will add $13 billion more to its India investment plan, bringing total planned spending there to $48 billion through 2030 for AI and cloud expansion. Amazon to invest additional $13 billion in India
• Positive Sentiment: Several analysts and market commentators reiterated bullish views, arguing that Amazon’s AI spending is widening its competitive moat and supporting longer-term growth. Amazon’s AI Spending Is Building A Stronger Moat
• Neutral Sentiment: Amazon’s eero business teamed with Kinetic on backup Wi‑Fi service, a modest product partnership that adds to Amazon’s broader connectivity ecosystem but is unlikely to move AMZN meaningfully on its own. Kinetic and eero Launch AlwaysOn Wi-Fi to Keep Customers Connected During Internet Outages
• Negative Sentiment: Investors remain concerned about Amazon’s heavy capital spending, with some reports saying capex worries and insider selling are weighing on sentiment. Amazon Stock Trending As Capex Concerns, Prime Day Questions, Insider Sales Pile Up
• Negative Sentiment: The European Commission said Amazon Web Services could face stricter “gatekeeper” rules under the Digital Markets Act, raising the risk of added compliance burdens and potential fines. Amazon, Microsoft cloud computing services should fall under EU tech rules, EU regulators say

Analyst Ratings Changes

A number of brokerages have issued reports on AMZN. Stifel Nicolaus set a $319.00 target price on Amazon.com and gave the stock a “buy” rating in a report on Thursday, April 30th. Wolfe Research reissued an “outperform” rating and set a $320.00 price target (up from $245.00) on shares of Amazon.com in a research note on Thursday, April 30th. Barclays restated an “overweight” rating on shares of Amazon.com in a report on Tuesday, June 9th. Moffett Nathanson upped their price objective on Amazon.com from $283.00 to $288.00 and gave the company a “buy” rating in a research note on Tuesday, April 7th. Finally, Roth Mkm raised their price objective on shares of Amazon.com from $285.00 to $300.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Amazon.com currently has an average rating of “Moderate Buy” and an average price target of $312.78.

Amazon.com Trading Up 2.5%

The company has a quick ratio of 1.01, a current ratio of 1.18 and a debt-to-equity ratio of 0.27. The company has a market cap of $2.50 trillion, a price-to-earnings ratio of 27.83, a PEG ratio of 1.75 and a beta of 1.44. The firm has a 50 day moving average price of $255.85 and a two-hundred day moving average price of $234.14.

Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings data on Wednesday, April 29th. The e-commerce giant reported $2.78 EPS for the quarter, topping analysts’ consensus estimates of $1.63 by $1.15. The company had revenue of $181.52 billion for the quarter, compared to analyst estimates of $177.28 billion. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.During the same period in the previous year, the firm earned $1.59 earnings per share. The firm’s quarterly revenue was up 16.6% on a year-over-year basis. As a group, equities analysts forecast that Amazon.com, Inc. will post 7.71 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Andrew R. Jassy sold 20,000 shares of the stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $263.42, for a total transaction of $5,268,400.00. Following the completion of the sale, the chief executive officer directly owned 2,205,766 shares in the company, valued at $581,042,879.72. This represents a 0.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of Amazon.com stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $263.40, for a total transaction of $4,074,007.80. Following the transaction, the chief executive officer directly owned 14,159 shares of the company’s stock, valued at $3,729,480.60. This represents a 52.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 195,774 shares of company stock worth $51,614,434. Corporate insiders own 8.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in AMZN. Ravenstone Capital Management Inc. lifted its stake in Amazon.com by 14.5% in the first quarter. Ravenstone Capital Management Inc. now owns 985 shares of the e-commerce giant’s stock valued at $205,000 after buying an additional 125 shares during the period. Hamilton Wealth LLC grew its position in shares of Amazon.com by 2.5% during the 1st quarter. Hamilton Wealth LLC now owns 119,172 shares of the e-commerce giant’s stock worth $24,820,000 after buying an additional 2,858 shares during the period. Basecamp Wealth Advisors LLC grew its position in shares of Amazon.com by 0.3% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 36,403 shares of the e-commerce giant’s stock worth $7,582,000 after buying an additional 125 shares during the period. Redwood Investment Management LLC increased its stake in shares of Amazon.com by 2.3% in the 1st quarter. Redwood Investment Management LLC now owns 32,445 shares of the e-commerce giant’s stock valued at $6,757,000 after acquiring an additional 724 shares in the last quarter. Finally, Ballast Advisors LLC increased its stake in shares of Amazon.com by 4.1% in the 1st quarter. Ballast Advisors LLC now owns 21,281 shares of the e-commerce giant’s stock valued at $4,432,000 after acquiring an additional 841 shares in the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

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.