Amazon.com (NASDAQ:AMZN) Trading Up 3.5% – Here’s What Happened

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price traded up 3.5% on Tuesday . The stock traded as high as $210.28 and last traded at $208.0390. 55,625,347 shares traded hands during trading, an increase of 9% from the average session volume of 51,004,910 shares. The stock had previously closed at $200.95.

Amazon.com News Summary

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

• Positive Sentiment: Delta selects Amazon Leo to provide in‑flight broadband on ~500 aircraft starting in 2028 — a large commercial anchor that accelerates Amazon’s satellite rollout, helps monetize Leo hardware/service capacity, and positions Amazon to challenge Starlink on a high‑visibility, recurring‑revenue contract. Amazon, Delta team up for in-flight Wi-Fi (Reuters)
• Positive Sentiment: Citi raised its price target on AMZN, citing stronger AWS outlook — the analyst upgrade/target lift gives buy‑side confidence and supports upside to consensus estimates for cloud revenue. Citi Raises Target Price for Amazon.com (Yahoo)
• Positive Sentiment: TGS selected AWS as its preferred cloud provider for HPC and generative AI work — another corporate win for AWS that underpins durable demand for cloud services and high‑margin contracts. TGS Announces AWS as its Preferred Cloud Provider (Yahoo)
• Positive Sentiment: Amazon MGM’s “Project Hail Mary” topped $300M global box office — a content win that supports Prime Video monetization, merchandising and subscriber engagement (an underappreciated contribution to services revenue). ‘Project Hail Mary’ box office (CNBC)
• Positive Sentiment: Amazon announced new Prime Business and Amazon Business credit cards for small businesses — expands fintech/rewards monetization and sticky merchant/checkout economics that can lift transaction and advertising flows. New Prime Business and Amazon Business Credit Cards (BusinessWire)
• Positive Sentiment: Courts blocked Perplexity from scraping Amazon — reinforces Amazon’s control over retail data and its advertising/traffic economics, reducing a potential competitive threat to shopping and ad monetization. Amazon court win vs Perplexity (Yahoo)
• Neutral Sentiment: Mixed analyst and market commentary: some firms highlight Amazon as a buy amid the pullback (Evercore/Jefferies mentions), while others flag nearer‑term valuation/market‑risk concerns — creates both buying interest and caution in trading. Amazon stock down YTD but analyst upside (Blockonomi)
• Neutral Sentiment: Amazon says it intends to revisit smartphones — potential long‑term product play but with long timelines and execution risk; not an immediate revenue driver. Amazon intends to revive smartphones (Yahoo)
• Negative Sentiment: Senior departures from Amazon’s AI chip unit — leadership turnover raises questions about execution and timing for in‑house silicon efforts that support AWS AI margins. AI chip executive exit (Barchart)
• Negative Sentiment: Macro risk to AI capex: S&P Global warns massive planned Big Tech AI spending faces an energy/cost shock if the geopolitical situation keeps energy prices elevated — could pressure margins and delay some infrastructure builds. AI capex energy risk (Yahoo)

Wall Street Analysts Forecast Growth

Several analysts recently commented on AMZN shares. Bank of America dropped their price target on shares of Amazon.com from $303.00 to $286.00 and set a “buy” rating on the stock in a research report on Tuesday, January 27th. Rothschild & Co Redburn set a $230.00 price target on Amazon.com in a research note on Wednesday, January 21st. Wall Street Zen downgraded Amazon.com from a “buy” rating to a “hold” rating in a research report on Saturday, January 10th. KeyCorp set a $285.00 price objective on Amazon.com in a report on Friday, February 6th. Finally, DA Davidson reaffirmed a “neutral” rating and set a $175.00 target price (down from $300.00) on shares of Amazon.com in a research note on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, fifty-three have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $286.57.

Amazon.com Price Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 1.05 and a quick ratio of 0.88. The stock has a market capitalization of $2.23 trillion, a price-to-earnings ratio of 29.02, a price-to-earnings-growth ratio of 1.49 and a beta of 1.40. The stock has a 50 day moving average price of $215.66 and a 200-day moving average price of $224.87.

Amazon.com (NASDAQ:AMZN) last announced its quarterly earnings data on Thursday, February 5th. The e-commerce giant reported $1.95 earnings per share for the quarter, missing analysts’ consensus estimates of $1.97 by ($0.02). Amazon.com had a net margin of 10.83% and a return on equity of 21.87%. The firm had revenue of $213.39 billion during the quarter, compared to analysts’ expectations of $211.02 billion. During the same quarter in the previous year, the business posted $1.86 EPS. The company’s revenue for the quarter was up 13.6% on a year-over-year basis. On average, analysts forecast that Amazon.com, Inc. will post 6.31 earnings per share for the current year.

Insider Activity

In related news, CEO Andrew R. Jassy sold 19,872 shares of the company’s stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $205.18, for a total transaction of $4,077,336.96. Following the completion of the sale, the chief executive officer owned 2,238,118 shares of the company’s stock, valued at approximately $459,217,051.24. This represents a 0.88% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Shelley Reynolds sold 2,695 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $205.90, for a total transaction of $554,900.50. Following the completion of the sale, the vice president owned 119,780 shares of the company’s stock, valued at approximately $24,662,702. The trade was a 2.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 71,686 shares of company stock valued at $14,688,739 in the last ninety days. 10.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Amazon.com

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. American Capital Advisory LLC increased its holdings in shares of Amazon.com by 63.9% in the 3rd quarter. American Capital Advisory LLC now owns 8,081 shares of the e-commerce giant’s stock valued at $1,774,000 after acquiring an additional 3,152 shares during the last quarter. Compagnie Lombard Odier SCmA acquired a new position in Amazon.com in the third quarter valued at approximately $451,642,000. DJE Kapital AG boosted its holdings in Amazon.com by 12.3% in the second quarter. DJE Kapital AG now owns 1,037,443 shares of the e-commerce giant’s stock valued at $229,890,000 after purchasing an additional 113,345 shares in the last quarter. Baltimore Washington Financial Advisors Inc. increased its stake in Amazon.com by 1.9% in the third quarter. Baltimore Washington Financial Advisors Inc. now owns 239,862 shares of the e-commerce giant’s stock valued at $52,667,000 after purchasing an additional 4,558 shares during the last quarter. Finally, Wealthfront Advisers LLC increased its stake in Amazon.com by 3.9% in the third quarter. Wealthfront Advisers LLC now owns 1,145,151 shares of the e-commerce giant’s stock valued at $251,441,000 after purchasing an additional 42,707 shares during the last quarter. Institutional investors and hedge funds own 72.20% of the company’s stock.

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.