Amazon.com (NASDAQ:AMZN) Shares Up 3% – What’s Next?

Amazon.com, Inc. (NASDAQ:AMZN)’s share price rose 3% on Wednesday . The company traded as high as $256.48 and last traded at $254.96. 43,823,374 shares traded hands during trading, a decline of 12% from the average daily volume of 49,907,973 shares. The stock had previously closed at $247.49.

Amazon.com News Summary

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

• Positive Sentiment: Jefferies and Citizens JMP both reiterated bullish views on Amazon, with JMP setting a $315 price target and Jefferies arguing Amazon offers a lower-cost way to gain exposure to AI data centers and cloud growth.
• Positive Sentiment: Amazon’s AI and infrastructure investment story remains a major driver, with coverage highlighting its expanding custom silicon/chip efforts, heavy warehouse robotics spending, and potential to turn AI chips into a large future business.
• Positive Sentiment: Amazon Web Services continues to attract optimism as Jefferies and other outlets pointed to resilient Prime Day consumer demand and accelerating AWS momentum heading into the next earnings report.
• Amazon Leo signed an agreement to bring satellite internet service to underserved communities in South Africa in 2027, underscoring the company’s broader long-term connectivity ambitions. Article: Amazon Leo to bring satellite internet to South Africa in 2027
• Neutral Sentiment: Dave Brown, a longtime senior AWS executive and advisor to CEO Andy Jassy, is leaving Amazon after 19 years and will be replaced by another senior company leader; the move signals management turnover but does not appear to change the core business outlook.
• Neutral Sentiment: Electrovaya announced a commercial relationship and warrant transaction with Amazon, which is supportive for Amazon’s operations but is more meaningful for Electrovaya’s stock than for AMZN. Article: Electrovaya Announces Commercial Relationship with Amazon
• Negative Sentiment: Amazon’s planned $25 billion bond sale drew attention to rising AI infrastructure spending, and some market commentary suggested bond investors are becoming more cautious about the scale of hyperscaler debt financing.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. HSBC boosted their price target on Amazon.com from $280.00 to $310.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Truist Financial boosted their price target on Amazon.com from $310.00 to $320.00 and gave the company a “buy” rating in a report on Friday, May 29th. Monness Crespi & Hardt raised their price objective on Amazon.com from $280.00 to $315.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. Guggenheim reiterated a “buy” rating and set a $320.00 price objective (up from $300.00) on shares of Amazon.com in a research note on Thursday, April 30th. Finally, Phillip Securities upgraded shares of Amazon.com from a “moderate buy” rating to a “buy” rating and set a $280.00 target price on the stock in a research note on Wednesday, May 13th. Fifty-seven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Amazon.com presently has an average rating of “Moderate Buy” and a consensus price target of $312.79.

Amazon.com Stock Up 3.0%

The company has a current ratio of 1.18, a quick ratio of 1.01 and a debt-to-equity ratio of 0.27. The firm has a market capitalization of $2.74 trillion, a P/E ratio of 30.50, a P/E/G ratio of 1.84 and a beta of 1.46. The company has a 50 day simple moving average of $252.16 and a two-hundred day simple moving average of $235.57.

Amazon.com (NASDAQ:AMZN) last released its quarterly earnings data on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.63 by $1.15. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The firm had revenue of $181.52 billion for the quarter, compared to analysts’ expectations of $177.28 billion. During the same quarter last year, the business posted $1.59 earnings per share. The company’s revenue for the quarter was up 16.6% compared to the same quarter last year. On average, equities analysts predict that Amazon.com, Inc. will post 7.75 EPS for the current fiscal year.

Insider Buying and Selling at Amazon.com

In other Amazon.com news, CEO Matthew S. Garman sold 15,467 shares of Amazon.com stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $263.40, for a total value of $4,074,007.80. Following the sale, the chief executive officer owned 14,159 shares of the company’s stock, valued at $3,729,480.60. The trade was a 52.21% decrease in their position. The transaction was disclosed in a legal 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, Director Jonathan Rubinstein sold 3,849 shares of the company’s stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $260.00, for a total value of $1,000,740.00. Following the sale, the director directly owned 78,654 shares in the company, valued at $20,450,040. This trade represents a 4.67% 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. Over the last three months, insiders have sold 175,274 shares of company stock worth $46,621,204. Insiders own 8.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. MilWealth Group LLC grew its stake in shares of Amazon.com by 79.0% in the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock worth $41,000 after buying an additional 79 shares in the last quarter. Lifetime Wealth Management P.C. purchased a new stake in shares of Amazon.com during the 4th quarter valued at about $45,000. Elkhorn Partners Limited Partnership lifted its holdings in shares of Amazon.com by 900.0% in the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock valued at $46,000 after acquiring an additional 180 shares during the last quarter. Fairway Wealth LLC grew its position in Amazon.com by 95.6% in the fourth quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant’s stock worth $51,000 after acquiring an additional 108 shares in the last quarter. Finally, Prudent Man Investment Management Inc. increased its stake in Amazon.com by 87.7% during the fourth quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant’s stock worth $53,000 after acquiring an additional 107 shares during the last quarter. 72.20% of the stock is owned by hedge funds and other institutional investors.

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.