Amazon.com FY2027 EPS Forecast Boosted by Erste Group Bank

Key Points

• Erste Group Bank raised Amazon’s FY2027 EPS forecast to $10.11 from $9.99, above the current full-year consensus estimate of $7.76.
• Amazon’s latest quarterly results exceeded expectations, with EPS of $2.78 versus the $1.63 consensus and revenue of $181.52 billion, up 16.6% year over year.
• Analyst sentiment remains broadly positive: 57 analysts rate Amazon a Buy and three rate it a Hold, with an average price target of $313.43. The stock opened at $230.86, down 0.2%.

Amazon.com, Inc. (NASDAQ:AMZN - Free Report) - Erste Group Bank boosted their FY2027 earnings estimates for shares of Amazon.com in a research report issued to clients and investors on Monday, July 27th. Erste Group Bank analyst S. Lingnau now forecasts that the e-commerce giant will post earnings per share of $10.11 for the year, up from their previous forecast of $9.99. The consensus estimate for Amazon.com's current full-year earnings is $7.76 per share.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its 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 company had revenue of $181.52 billion for the quarter, compared to the consensus estimate of $177.28 billion. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.Amazon.com's quarterly revenue was up 16.6% compared to the same quarter last year. During the same period in the previous year, the business earned $1.59 earnings per share.

A number of other research firms have also recently commented on AMZN. Arete Research raised their target price on shares of Amazon.com from $301.00 to $310.00 and gave the stock a "buy" rating in a research note on Monday, May 18th. The Goldman Sachs Group reiterated a "buy" rating and issued a $335.00 price target on shares of Amazon.com in a research report on Thursday, July 9th. Wolfe Research restated an "outperform" rating and set a $320.00 price objective (up from $245.00) on shares of Amazon.com in a research report on Thursday, April 30th. Morgan Stanley lifted their target price on shares of Amazon.com from $300.00 to $330.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. Finally, BMO Capital Markets reaffirmed an "outperform" rating and issued a $360.00 target price (up from $355.00) on shares of Amazon.com in a report on Tuesday. Fifty-seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, Amazon.com has an average rating of "Moderate Buy" and an average price target of $313.43.

Amazon.com Stock Down 0.2%

NASDAQ AMZN opened at $230.86 on Wednesday. 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. The company has a market capitalization of $2.48 trillion, a P/E ratio of 27.61, a price-to-earnings-growth ratio of 1.73 and a beta of 1.46. The stock's 50-day moving average price is $247.03 and its 200-day moving average price is $236.20.

Institutional Investors Weigh In On Amazon.com

Several large investors have recently bought and sold shares of AMZN. Narwhal Capital Management boosted its stake in shares of Amazon.com by 2.3% during the fourth quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant's stock valued at $49,997,000 after purchasing an additional 4,854 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in Amazon.com by 21.0% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 24,653,228 shares of the e-commerce giant's stock worth $5,690,463,000 after purchasing an additional 4,275,942 shares in the last quarter. Weaver Capital Management LLC boosted its holdings in shares of Amazon.com by 13.6% in the 4th quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant's stock valued at $9,063,000 after buying an additional 4,713 shares in the last quarter. Ethos Financial Group LLC boosted its holdings in shares of Amazon.com by 9.6% in the 4th quarter. Ethos Financial Group LLC now owns 36,485 shares of the e-commerce giant's stock valued at $8,421,000 after buying an additional 3,196 shares in the last quarter. Finally, Culbertson A N & Co. Inc. grew its position in shares of Amazon.com by 8.6% in the 4th quarter. Culbertson A N & Co. Inc. now owns 30,444 shares of the e-commerce giant's stock worth $7,027,000 after buying an additional 2,412 shares during the last quarter. Institutional investors own 72.20% of the company's stock.

Insider Transactions at Amazon.com

In other Amazon.com news, SVP David Zapolsky sold 9,270 shares of Amazon.com stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $268.53, for a total value of $2,489,273.10. Following the sale, the senior vice president owned 41,190 shares of the company's stock, valued at $11,060,750.70. The trade was a 18.37% 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, CEO Douglas J. Herrington sold 1,000 shares of the company's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $239.77, for a total value of $239,770.00. Following the sale, the chief executive officer directly owned 484,527 shares in the company, valued at $116,175,038.79. This trade represents a 0.21% 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. In the last ninety days, insiders sold 140,425 shares of company stock valued at $37,715,464. 8.90% of the stock is owned by insiders.

Amazon.com News Roundup

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

• Positive Sentiment: Analyst earnings estimate increased: Erste Group Bank raised its FY2027 EPS forecast for Amazon to $10.11 from $9.99, above the broader current-year consensus of $7.76. The revision signals improving expectations for profitability. Erste Group Bank raises Amazon EPS estimate
• Positive Sentiment: AWS and AI demand remain key potential catalysts: Amazon is expected to address AWS growth, cloud margins, advertising momentum and AI infrastructure demand in its upcoming results. A reported $400 million AWS compute agreement with Recursive Superintelligence and an extended AI partnership with Ryanair provide additional evidence of enterprise demand. Recursive Superintelligence AWS agreement
• Positive Sentiment: New growth initiatives are expanding Amazon’s addressable market: Amazon Prime Video secured exclusive Canadian NHL playoff games, while its planned Amazon Leo network could deploy 5,105 satellites for direct-to-device connectivity beginning in 2028. The satellite strategy builds on Amazon’s planned $11.6 billion Globalstar acquisition and could create a new communications business over time. Amazon satellite network proposal
• Neutral Sentiment: High volatility is expected around earnings: Options markets imply an approximately 6% move in either direction after the report. Investors will focus on whether AWS growth and AI demand justify Amazon’s spending while preserving cash flow. Amazon earnings volatility outlook
• Negative Sentiment: AI spending and financing are fueling investor concern: Amazon plans approximately $200 billion in 2026 capital expenditures and raised $25 billion through bonds to help finance its data-center build-out. The scale of spending raises questions about free-cash-flow pressure, leverage and how long shareholders must wait for returns. Amazon bond financing and AI infrastructure spending
• Negative Sentiment: AI strategy changes add execution risk: Amazon is reportedly winding down several Nova models, reorganizing its AI teams and prioritizing a new frontier-model effort. The shift may improve focus, but it also suggests earlier AI initiatives struggled to gain traction. UBS and Mizuho have lowered price targets ahead of earnings, reflecting heightened uncertainty. Amazon AI strategy overhaul

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.

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