Amazon.com FY2027 EPS Forecast Boosted by Erste Group Bank

Key Points

• Erste Group Bank raised its FY2027 EPS forecast for Amazon to $9.90 from $9.75, well above the current consensus estimate of $7.71 per share. The upgrade reflects a more optimistic longer-term earnings outlook for the company.
• Amazon’s latest quarterly results came in better than expected, with EPS of $2.78 versus $1.63 expected and revenue of $181.52 billion versus $177.28 billion estimated. Revenue also rose 16.6% year over year, underscoring continued business momentum.
• Wall Street sentiment remains broadly positive, with several firms lifting price targets and 57 analysts rating the stock a Buy. The consensus price target now stands at $312.52, even as the shares traded down 1.1% on Friday.

Amazon.com, Inc. (NASDAQ:AMZN - Free Report) - Equities researchers at Erste Group Bank increased their FY2027 earnings estimates for shares of Amazon.com in a research note issued on Tuesday, May 12th. Erste Group Bank analyst S. Lingnau now anticipates that the e-commerce giant will earn $9.90 per share for the year, up from their prior forecast of $9.75. The consensus estimate for Amazon.com's current full-year earnings is $7.71 per share.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share for the quarter, beating the consensus estimate of $1.63 by $1.15. The firm had revenue of $181.52 billion during the quarter, compared to the consensus estimate of $177.28 billion. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The company's revenue was up 16.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.59 earnings per share.

A number of other research firms also recently issued reports on AMZN. Benchmark increased their price target on Amazon.com from $275.00 to $370.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Stifel Nicolaus set a $319.00 price objective on shares of Amazon.com and gave the stock a "buy" rating in a research note on Thursday, April 30th. Citizens Jmp reiterated a "market outperform" rating and set a $315.00 target price on shares of Amazon.com in a report on Friday, April 10th. Oppenheimer raised their target price on shares of Amazon.com from $275.00 to $320.00 and gave the company an "outperform" rating in a research report on Thursday, April 30th. Finally, Telsey Advisory Group upped their price target on shares of Amazon.com from $300.00 to $315.00 and gave the stock an "outperform" rating in a research report on Thursday, April 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $312.52.

Amazon.com Trading Down 1.1%

AMZN opened at $267.22 on Friday. The stock's fifty day moving average is $233.53 and its two-hundred day moving average is $230.43. The company has a market capitalization of $2.87 trillion, a P/E ratio of 31.96, a PEG ratio of 2.02 and a beta of 1.46. Amazon.com has a 52 week low of $196.00 and a 52 week high of $278.56. The company has a quick ratio of 1.01, a current ratio of 1.18 and a debt-to-equity ratio of 0.27.

Insider Activity

In related news, CEO Matthew S. Garman sold 17,751 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $205.22, for a total transaction of $3,642,860.22. Following the completion of the transaction, the chief executive officer owned 9,405 shares in the company, valued at $1,930,094.10. The trade was a 65.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Douglas J. Herrington sold 27,500 shares of the stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $275.00, for a total transaction of $7,562,500.00. Following the sale, the chief executive officer directly owned 471,361 shares of the company's stock, valued at $129,624,275. The trade was a 5.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 190,593 shares of company stock worth $46,081,241 in the last quarter. 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 business. Fairway Wealth LLC increased its stake in Amazon.com by 113.2% during the 3rd quarter. Fairway Wealth LLC now owns 113 shares of the e-commerce giant's stock valued at $25,000 after purchasing an additional 60 shares in the last quarter. Sellwood Investment Partners LLC acquired a new position in shares of Amazon.com in the 3rd quarter valued at $27,000. MilWealth Group LLC raised its stake in 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 acquiring an additional 79 shares during the last quarter. Lifetime Wealth Management P.C. acquired a new stake in Amazon.com during the 4th quarter worth about $45,000. Finally, Elkhorn Partners Limited Partnership grew its stake in Amazon.com by 900.0% during the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant's stock valued at $46,000 after purchasing an additional 180 shares during the last quarter. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Amazon is deepening its AI shopping push by replacing Rufus with Alexa for Shopping, a more personalized assistant that can compare products, track prices, and take actions for users. That reinforces the company’s long-term AI monetization story. Amazon ditches Rufus chatbot, launches Alexa shopping agent in AI strategy pivot
• Positive Sentiment: Several articles point to Amazon’s AI infrastructure and AWS growth as key drivers, with investors viewing the company as a major beneficiary of cloud and AI spending. Amazon Rallies 36% as AI Push Drives Market Value Toward $3 Trillion
• Positive Sentiment: Amazon continues expanding Whole Foods’ smaller-format Daily Shop stores, signaling more growth options in urban retail and convenience shopping. Whole Foods Market to Bring its Daily Shop Concept to Three New U.S. Markets
• Positive Sentiment: Amazon also appears to be gaining credibility from the investment community, with ARK Investment Management reportedly adding to its AMZN stake and Phillip Securities upgrading the stock. ARK Investment Management boosts Amazon.com stake by 142,982 shares
• Neutral Sentiment: Trump’s Q1 ethics filing showed he sold his Amazon stake, but this is mainly a portfolio disclosure rather than a direct operating development for Amazon. Trump’s Portfolio Pivot: Nvidia (NVDA) and Chip Stocks Replace Big Tech Holdings
• Negative Sentiment: Some hedge funds, including Columbus Hill Capital, Egerton Capital, and Bowie Capital, reportedly trimmed Amazon positions, which can signal near-term portfolio caution. Egerton Capital Trims Amazon Stake, Sells 3.5M Shares
• Negative Sentiment: Amazon’s aggressive AI and data-center buildout is drawing more scrutiny, including a lawmakers’ probe into power usage and consumer utility costs, adding regulatory and political risk. Lawmakers Probe Amazon AI Data Center Power Costs And Investor Risks
• Negative Sentiment: Amazon is also being hit by reports of additional layoffs and cost cuts, which suggests management is still tightening operations even as it spends heavily on AI. Amazon cuts more jobs months after mass layoffs

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.

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