Amazon.com, Inc. (NASDAQ:AMZN) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Amazon has a “Moderate Buy” consensus from 60 brokerages, with 57 buy ratings and only 3 holds. Analysts’ average 12-month price target is about $312.79.
• Recent earnings were strong, as Amazon reported EPS of $2.78 versus the $1.63 consensus and revenue of $181.52 billion, both above expectations. Revenue also rose 16.6% year over year.
• Investors are watching Amazon’s AI and infrastructure spending, including a large bond sale to support data-center expansion, but some coverage warns that heavy capex is pressuring free cash flow and increasing debt needs.

Amazon.com, Inc. (NASDAQ:AMZN) has earned an average recommendation of "Moderate Buy" from the sixty brokerages that are currently covering the firm, MarketBeat.com reports. Three research analysts have rated the stock with a hold rating and fifty-seven have given a buy rating to the company. The average 12-month price objective among analysts that have covered the stock in the last year is $312.7931.

AMZN has been the subject of several recent analyst reports. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Amazon.com in a research note on Friday, June 26th. Jefferies Financial Group restated a "buy" rating on shares of Amazon.com in a report on Thursday, June 18th. Wolfe Research reaffirmed an "outperform" rating and set a $320.00 price target (up from $245.00) on shares of Amazon.com in a research note on Thursday, April 30th. TD Securities raised shares of Amazon.com to a "buy" rating in a research report on Monday, April 13th. Finally, Mizuho raised their price objective on shares of Amazon.com from $315.00 to $325.00 and gave the stock an "outperform" rating in a research note on Tuesday, April 28th.

Amazon.com Trading Down 0.7%

AMZN traded down $1.70 on Friday, hitting $245.34. The company had a trading volume of 31,617,563 shares, compared to its average volume of 58,414,680. The business's fifty day simple moving average is $253.04 and its 200 day simple moving average is $235.31. The company has a quick ratio of 1.01, a current ratio of 1.18 and a debt-to-equity ratio of 0.27. Amazon.com has a 12-month low of $196.00 and a 12-month high of $278.56. The company has a market cap of $2.64 trillion, a PE ratio of 29.35, a PEG ratio of 1.83 and a beta of 1.46.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.63 by $1.15. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The business had revenue of $181.52 billion for the quarter, compared to the consensus estimate of $177.28 billion. During the same period in the prior year, the business posted $1.59 earnings per share. The company's quarterly revenue was up 16.6% compared to the same quarter last year. Equities research analysts expect that Amazon.com will post 7.75 EPS for the current year.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Several reports highlighted Amazon’s expanding AI/data-center buildout, including plans to increase capacity and a $25 billion bond sale to fund infrastructure, which bulls see as supporting long-term AWS growth. Amazon’s New Debt Deal Puts Its AI Spending Story on Trial
• Positive Sentiment: Analyst coverage remained constructive, with BNP Paribas keeping an Outperform rating and a $345 target, while BofA raised its price target and cited improving sell-through trends for Amazon’s retail business. Amazon's Valuation Looks Attractive Ahead of Earnings: Analyst
• Positive Sentiment: Articles also framed Amazon as a leading AI winner, noting that hyperscaler spending may be “pre-sold” through future demand and that Amazon’s valuation remains attractive relative to peers. Nervous About AI Spending? Buy the Stocks of These 3 Tech Giants.
• Neutral Sentiment: One story said Amazon is cheaper than Walmart and Costco on a key valuation metric, but the explanation was more about business mix than a clear near-term catalyst. Why Is Amazon so Much Cheaper Than Walmart and Costco? This Is the Only Answer I Can Think of.
• Negative Sentiment: Investors remain wary of Amazon’s heavy capex and rising debt needs, with some coverage warning that free cash flow has been squeezed as the company funds its AI expansion. Huge News for Amazon Stock Investors!
• Negative Sentiment: There were also headlines about Third Point trimming its Amazon stake and commentary about insider selling, which can add to short-term caution. Billionaire Investor Retreats From Retail, Exits Alibaba Entirely, Cuts Amazon Stake 10%

Insider Transactions at Amazon.com

In other news, SVP David Zapolsky sold 9,270 shares of the 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 directly owned 41,190 shares in the company, valued at approximately $11,060,750.70. This represents a 18.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of the firm's 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 directly owned 14,159 shares of the company's stock, valued at $3,729,480.60. This represents a 52.21% 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 90 days, insiders sold 195,774 shares of company stock valued at $51,643,704. Company insiders own 8.90% of the company's stock.

Institutional Trading of Amazon.com

Large investors have recently made changes to their positions in the stock. First Community Trust NA grew its stake in Amazon.com by 2.5% in the second quarter. First Community Trust NA now owns 12,383 shares of the e-commerce giant's stock worth $2,951,000 after purchasing an additional 303 shares in the last quarter. Walker Asset Management LLC increased its holdings in Amazon.com by 4.3% during the 2nd quarter. Walker Asset Management LLC now owns 9,249 shares of the e-commerce giant's stock worth $2,204,000 after purchasing an additional 378 shares during the period. Ballast Inc. raised its position in Amazon.com by 25.3% during the 2nd quarter. Ballast Inc. now owns 23,220 shares of the e-commerce giant's stock valued at $5,534,000 after purchasing an additional 4,695 shares in the last quarter. Lee Kelleher & Klein Wealth Management purchased a new stake in shares of Amazon.com in the 2nd quarter worth $207,000. Finally, Regent Peak Wealth Advisors LLC lifted its holdings in shares of Amazon.com by 2.0% in the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 49,094 shares of the e-commerce giant's stock worth $11,701,000 after buying an additional 940 shares during the period. 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.

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