Amazon.com (NASDAQ:AMZN) Trading Up 1.3% – Time to Buy?

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price was up 1.3% on Monday . The stock traded as high as $263.32 and last traded at $262.07. Approximately 27,758,465 shares were traded during trading, a decline of 43% from the average session volume of 49,020,746 shares. The stock had previously closed at $258.63.

Amazon.com News Roundup

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

• Positive Sentiment: Analyst reiterates bullish AWS outlook. Citizens maintained a Market Outperform rating and a $315 price target, citing potential gains from OpenAI and Anthropic demand for Amazon Web Services. TD Cowen also sees AWS revenue potentially reaching $222 billion by 2027, materially above current Wall Street expectations. Amazon Stock is Trending Higher: What’s Going On Today?
• Positive Sentiment: AI partnerships and infrastructure demand remain major catalysts. Coverage highlights AWS’s accelerating growth, Amazon’s custom-chip opportunity, and its relationship with Anthropic. A potential Anthropic IPO could also increase investor attention on Amazon’s stake and its role as a key AI infrastructure provider. The One Line in Anthropic’s S-1 That Amazon Investors Should Read First
• Positive Sentiment: Zoox and Prime Air broaden Amazon’s long-term growth story. Amazon-owned Zoox is beginning fully autonomous ride operations in San Francisco, while Prime Air reportedly plans to expand drone delivery to nearly 500 U.S. cities and towns by year-end. These initiatives could diversify Amazon beyond retail, advertising and cloud services, although they are still emerging businesses. Amazon’s Robotaxi Bet Is Finally Coming for Waymo
• Neutral Sentiment: Investor sentiment and valuation remain supportive. Stanley Druckenmiller bought Amazon shares in the second quarter, and several analysts maintain buy-equivalent ratings with price targets above the current trading range. However, these are portfolio and analyst signals rather than new company fundamentals. Stanley Druckenmiller Bought Amazon and Alphabet in Q2
• Negative Sentiment: AI spending is pressuring cash generation. Reports point to sharply higher capital expenditures and negative free cash flow despite rising operating cash flow. Investors are weighing whether AWS and AI monetization will produce returns quickly enough to justify the infrastructure investment.
• Negative Sentiment: Competitive and legal risks persist. Amazon faces a new lawsuit alleging Twitch content was used to train AI, while Walmart is launching lower-priced fashion offerings aimed at competing for Amazon’s customers. Technology-sector weakness also creates a less favorable backdrop for high-growth stocks. Amazon Stock Rises Despite a New Twitch AI Lawsuit

Analysts Set New Price Targets

Several equities research analysts have issued reports on AMZN shares. Truist Financial boosted their price target on shares of Amazon.com from $320.00 to $350.00 and gave the company a “buy” rating in a report on Friday, July 31st. Wells Fargo & Company reaffirmed an “overweight” rating and set a $328.00 price objective (up from $322.00) on shares of Amazon.com in a report on Friday, July 31st. Needham & Company LLC reissued a “buy” rating and issued a $300.00 target price on shares of Amazon.com in a research note on Friday, July 31st. JPMorgan Chase & Co. increased their price target on shares of Amazon.com from $330.00 to $365.00 and gave the stock an “overweight” rating in a research report on Friday, July 31st. Finally, Evercore restated an “outperform” rating on shares of Amazon.com in a research note on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $322.39.

Amazon.com Price Performance

The company’s fifty day moving average is $249.86 and its two-hundred day moving average is $239.32. The firm has a market capitalization of $2.83 trillion, a price-to-earnings ratio of 21.08, a price-to-earnings-growth ratio of 1.72 and a beta of 1.45. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23.

Amazon.com (NASDAQ:AMZN) last released its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The business had revenue of $200.61 billion during the quarter, compared to the consensus estimate of $197.03 billion. During the same quarter in the prior year, the company posted $1.68 earnings per share. The firm’s revenue was up 19.6% on a year-over-year basis. Equities research analysts anticipate that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Douglas J. Herrington sold 3,741 shares of Amazon.com stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $262.76, for a total value of $982,985.16. Following the sale, the chief executive officer directly owned 467,138 shares in the company, valued at $122,745,180.88. This trade represents a 0.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 6,741 shares of company stock valued at $1,767,335. Company insiders own 8.90% of the company’s stock.

Institutional Trading of Amazon.com

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Trust Asset Management LLC raised its position in shares of Amazon.com by 3.3% in the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock valued at $26,000 after buying an additional 3,414 shares in the last quarter. TOP Private Wealth LLC. acquired a new stake in Amazon.com during the second quarter worth approximately $29,000. Bard Associates Inc. bought a new position in Amazon.com during the 2nd quarter worth $32,000. Longfellow Investment Management Co. LLC bought a new position in Amazon.com during the 2nd quarter worth $33,000. Finally, MilWealth Group LLC raised its holdings in Amazon.com by 79.0% in the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after acquiring an additional 79 shares in the last quarter. 72.20% of the stock is owned by 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.