Amazon.com (NASDAQ:AMZN) Trading 1% Higher – Still a Buy?

Amazon.com, Inc. (NASDAQ:AMZN)’s share price traded up 1% during trading on Friday . The company traded as high as $255.43 and last traded at $253.71. 51,892,744 shares traded hands during mid-day trading, an increase of 9% from the average session volume of 47,392,207 shares. The stock had previously closed at $251.19.

More Amazon.com News

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

• Positive Sentiment: Amazon agreed to purchase backup generators from Generac Holdings under a long-term arrangement valued at up to $8 billion, including approximately $2.4 billion of expected deliveries in 2027 and 2028. The deal is designed to secure reliable power for AWS data centers and reduce delays caused by strained utility grids. Amazon also received warrants to purchase up to roughly $340 million of Generac shares, aligning the supplier with Amazon’s infrastructure expansion. Generac, Amazon strike $2.4 billion long-term generator supply deal
• Positive Sentiment: Analysts and market coverage point to AWS’s fastest growth in several quarters, with CEO Andy Jassy highlighting a $169 billion annual revenue run rate. Rising demand for AI and traditional cloud services supports the view that Amazon’s large data-center investments can produce substantial long-term revenue growth. Amazon’s AI Bet is Already Starting to Pay Off
• Positive Sentiment: Amazon Web Services made Amazon Connect Talent generally available, offering AI agents that can conduct job interviews and automate high-volume hiring workflows. The product expands AWS’s enterprise AI offerings and could create another software-driven revenue stream. Amazon Rolls Out AI Agents That Interview Job Applicants 24/7
• Neutral Sentiment: Project Mercury reportedly targets more than 1,000 same-day delivery hubs by 2031, helping Amazon narrow Walmart’s geographic advantage. The strategy could strengthen retail competitiveness, but its multibillion-dollar cost may weigh on margins before efficiency benefits materialize. How to Play AMZN Stock as Amazon Unveils Project Mercury
• Negative Sentiment: Amazon’s AI buildout is consuming substantial capital and has reportedly pushed free cash flow negative, creating execution and return-on-investment risks. Senators have also asked the FTC to examine Amazon’s AI shopping chatbot and “Made in USA” product-label practices, adding potential regulatory risk. Amazon, Walmart chatbots attract senator ire over made in USA label snags

Analyst Upgrades and Downgrades

A number of research firms have commented on AMZN. DA Davidson restated a “neutral” rating and issued a $250.00 price objective on shares of Amazon.com in a research note on Friday, July 31st. KeyCorp boosted their price target on Amazon.com from $335.00 to $350.00 and gave the company an “overweight” rating in a research report on Friday, July 31st. Monness Crespi & Hardt upped their price objective on Amazon.com from $315.00 to $330.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Jefferies Financial Group reiterated a “buy” rating on shares of Amazon.com in a research note on Thursday, June 18th. Finally, Wolfe Research reissued an “outperform” rating and issued a $315.00 target price on shares of Amazon.com in a report on Friday, July 31st. Fifty-six investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $321.19.

Amazon.com Price Performance

The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The stock has a fifty day simple moving average of $255.93 and a two-hundred day simple moving average of $245.54. The company has a market cap of $2.74 trillion, a PE ratio of 20.41, a price-to-earnings-growth ratio of 1.91 and a beta of 1.44.

Amazon.com (NASDAQ:AMZN) last issued its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.82 by $3.93. The business had revenue of $200.61 billion during the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The company’s revenue for the quarter was up 19.6% on a year-over-year basis. During the same period in the prior year, the business posted $1.68 EPS. On average, equities analysts predict that Amazon.com, Inc. will post 8.01 EPS for the current fiscal year.

Insider Activity

In other Amazon.com news, 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 completion of the transaction, the senior vice president owned 41,190 shares in the company, valued at approximately $10,699,926.30. This represents a 18.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian Olsavsky sold 6,172 shares of the business’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $260.31, for a total transaction of $1,606,633.32. Following the sale, the chief financial officer owned 109,207 shares in the company, valued at $28,427,674.17. The trade was a 5.35% decrease in their ownership of the stock. 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 have sold a total of 71,589 shares of company stock valued at $18,568,785 over the last three months. 8.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Silvant Capital Management LLC acquired a new stake in Amazon.com in the 2nd quarter valued at about $60,065,000. Northstar Financial Companies Inc. acquired a new position in Amazon.com during the second quarter worth about $3,376,000. Gryphon Financial Partners LLC raised its position in Amazon.com by 7.5% during the first quarter. Gryphon Financial Partners LLC now owns 73,085 shares of the e-commerce giant’s stock worth $15,221,000 after acquiring an additional 5,125 shares during the last quarter. First Citizens Bank & Trust Co. lifted its holdings in shares of Amazon.com by 1.7% in the first quarter. First Citizens Bank & Trust Co. now owns 303,862 shares of the e-commerce giant’s stock valued at $63,285,000 after purchasing an additional 5,104 shares in the last quarter. Finally, GSA Capital Partners LLP acquired a new stake in shares of Amazon.com in the second quarter valued at approximately $2,261,000. 72.20% of the stock is currently owned by institutional investors and hedge funds.

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company that operates online marketplaces and provides a broad range of consumer products and services. Its retail business sells merchandise directly to customers and enables third-party sellers to offer products through Amazon’s websites and applications. The company also operates physical stores and provides services such as digital content, subscriptions, and consumer devices, including Kindle and Echo products.

Amazon Web Services (AWS) provides cloud computing, storage, database, analytics, artificial intelligence, machine learning, and other technology services to businesses, governments, and organizations.