Amazon.com (NASDAQ:AMZN) Issues Earnings Results, Misses Estimates By $0.02 EPS

Amazon.com, Inc. (NASDAQ:AMZN) posted its earnings results on Thursday. The e-commerce giant reported $1.95 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.97 by ($0.02), Zacks reports. Amazon.com had a return on equity of 23.62% and a net margin of 11.06%.

Amazon.com Stock Performance

Shares of AMZN traded down $10.30 during mid-day trading on Thursday, hitting $222.69. The stock had a trading volume of 87,934,254 shares, compared to its average volume of 44,387,152. Amazon.com, Inc. has a fifty-two week low of $161.38 and a fifty-two week high of $258.60. The company has a quick ratio of 0.80, a current ratio of 1.01 and a debt-to-equity ratio of 0.14. The company’s fifty day simple moving average is $234.09 and its two-hundred day simple moving average is $229.96. The company has a market cap of $2.38 trillion, a PE ratio of 31.45, a PEG ratio of 1.49 and a beta of 1.37.

Analyst Ratings Changes

AMZN has been the topic of several recent analyst reports. CIBC upped their price target on Amazon.com to $315.00 in a research note on Monday, October 20th. Arete Research upped their target price on shares of Amazon.com from $264.00 to $283.00 and gave the company a “buy” rating in a research report on Wednesday, January 21st. Telsey Advisory Group reaffirmed an “outperform” rating and set a $300.00 target price on shares of Amazon.com in a research note on Friday, January 30th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Amazon.com from $278.00 to $300.00 and gave the stock a “buy” rating in a research report on Friday, October 31st. Finally, Citizens Jmp boosted their target price on Amazon.com from $300.00 to $315.00 and gave the company an “outperform” rating in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, fifty-four have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Amazon.com currently has an average rating of “Moderate Buy” and an average target price of $296.37.

Insiders Place Their Bets

In other news, CEO Douglas J. Herrington sold 2,500 shares of the company’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $233.22, for a total value of $583,050.00. Following the completion of the sale, the chief executive officer owned 505,934 shares in the company, valued at $117,993,927.48. This represents a 0.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Andrew R. Jassy sold 19,872 shares of Amazon.com stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $216.94, for a total value of $4,311,031.68. Following the transaction, the chief executive officer directly owned 2,208,310 shares in the company, valued at approximately $479,070,771.40. The trade was a 0.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 47,061 shares of company stock valued at $10,351,262. Corporate insiders own 9.70% of the company’s stock.

Hedge Funds Weigh In On Amazon.com

Hedge funds have recently modified their holdings of the stock. Sivia Capital Partners LLC lifted its stake in Amazon.com by 14.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 40,815 shares of the e-commerce giant’s stock worth $8,954,000 after purchasing an additional 5,214 shares in the last quarter. Brighton Jones LLC grew its position in Amazon.com by 10.9% during the fourth quarter. Brighton Jones LLC now owns 4,036,091 shares of the e-commerce giant’s stock worth $885,478,000 after buying an additional 397,007 shares in the last quarter. Revolve Wealth Partners LLC increased its stake in Amazon.com by 4.1% in the 4th 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 last quarter. Caitlin John LLC bought a new position in shares of Amazon.com in the 3rd quarter worth $189,000. Finally, Aster Capital Management DIFC Ltd purchased a new stake in shares of Amazon.com during the 3rd quarter valued at $187,000. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Analysts have been upgrading Amazon and raising price targets on stronger AWS outlooks, supporting a bullish medium-term thesis for AMZN. Oppenheimer Raises Target
• Positive Sentiment: AWS deals and enterprise momentum remain a key upside driver — recent reports highlight multi‑year partnerships and analyst expectations for reacceleration in cloud revenue and margins. AWS Partnership Coverage
• Positive Sentiment: Amazon is expanding AI across devices and content: Alexa+ is being widely rolled out and the company is exploring deeper access to OpenAI models — moves that could lift engagement, Prime value and AWS/AI monetization long term. OpenAI/Alexa Report
• Neutral Sentiment: Investors are focused on Thursday’s Q4 print where AWS growth, AI-related spending and corporate cost cuts will determine whether the company can justify higher multiple expectations. The report is a likely near-term volatility trigger. Earnings Preview
• Neutral Sentiment: Amazon is testing AI tools for film/TV production and pushing Alexa+ to all U.S. users — strategic investments that could broaden margins over time but add near-term execution risk and CAPEX demands. AI in Content Production
• Negative Sentiment: Germany’s competition authority banned Amazon’s price‑control tools and ordered ~€59M returned, and regulators fined the company — a concrete hit to reputation and a modest financial cost that raises regulatory risk in Europe. German Antitrust Ruling
• Negative Sentiment: Continued layoffs and the announced Amazon Fresh closures (severance and store shutdowns) spotlight near‑term cost cuts but also signal restructuring headwinds that can pressure sentiment. Fresh Store Closures
• Negative Sentiment: Tech sector volatility driven by concerns about rising AI-related capex (after other mega-cap guidance scares) is pressuring Amazon alongside peers; that macro narrative increases the odds of a down move if Q4 guidance or capex plans disappoint. Tech Sell-Off Context
• Negative Sentiment: Smaller near-term drags — a reported Alexa+ subscription price change and European data center/power-grid delays — add execution noise that can amplify market reactions around earnings. Alexa Price Reaction

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.