Amazon.com (NASDAQ:AMZN) Earns "Buy" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its “buy” rating on Amazon, adding to a broadly bullish analyst backdrop. Overall, 57 analysts rate the stock a Buy and the consensus target price is about $312.78.
• Amazon’s latest earnings showed strong momentum, with EPS of $2.78 and revenue of $181.52 billion, both above expectations. Quarterly revenue rose 16.6% year over year, and analysts now expect full-year EPS of 7.71.
• The stock recently traded around $246.82, below the average analyst target, while investors continue to watch Amazon’s heavy AI and cloud infrastructure spending. Recent headlines highlight a major Missouri data center buildout and continued AWS expansion as key growth drivers.

Amazon.com (NASDAQ:AMZN)'s stock had its "buy" rating restated by analysts at Royal Bank Of Canada in a research note issued to investors on Tuesday,MarketScreener reports.

Several other brokerages have also weighed in on AMZN. Barclays restated an "overweight" rating on shares of Amazon.com in a report on Tuesday, June 9th. Piper Sandler set a $330.00 price target on shares of Amazon.com in a research report on Thursday, June 11th. TD Cowen restated a "buy" rating and set a $350.00 price objective on shares of Amazon.com in a research report on Tuesday, May 12th. Roth Mkm lifted their price objective on shares of Amazon.com from $285.00 to $300.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Finally, Truist Financial boosted their target price on shares of Amazon.com from $310.00 to $320.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Fifty-seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $312.78.

Amazon.com Price Performance

Shares of Amazon.com stock traded up $0.80 on Tuesday, hitting $246.82. The company had a trading volume of 6,365,773 shares, compared to its average volume of 47,603,871. Amazon.com has a 52 week low of $196.00 and a 52 week high of $278.56. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01. The company has a market cap of $2.66 trillion, a PE ratio of 29.53, a PEG ratio of 1.79 and a beta of 1.45. The business has a 50-day simple moving average of $254.21 and a 200-day simple moving average of $233.79.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 EPS for the quarter, topping the consensus estimate of $1.63 by $1.15. The firm had revenue of $181.52 billion for the quarter, compared to analysts' expectations of $177.28 billion. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The firm's quarterly revenue was up 16.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.59 earnings per share. Research analysts expect that Amazon.com will post 7.71 EPS for the current fiscal year.

Insiders Place Their Bets

In other Amazon.com news, CEO Matthew S. Garman sold 15,467 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $263.40, for a total transaction 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. The trade was a 52.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $268.53, for a total value of $2,489,273.10. Following the completion of 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. 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 have sold 195,774 shares of company stock worth $51,614,434 in the last quarter. Corporate insiders own 8.90% of the company's stock.

Hedge Funds Weigh In On Amazon.com

Large investors have recently made changes to their positions in the business. Red Crane Wealth Management LLC increased its stake in shares of Amazon.com by 2.3% in the first quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant's stock worth $346,000 after acquiring an additional 38 shares during the last quarter. Robinson Smith Wealth Advisors LLC boosted its position in Amazon.com by 0.7% during the first quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant's stock valued at $1,147,000 after purchasing an additional 40 shares during the last quarter. Sfam LLC grew its stake in Amazon.com by 3.4% in the first quarter. Sfam LLC now owns 1,224 shares of the e-commerce giant's stock valued at $255,000 after purchasing an additional 40 shares in the last quarter. Measured Risk Portfolios Inc. increased its position in Amazon.com by 3.4% in the 1st quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant's stock worth $251,000 after purchasing an additional 40 shares during the last quarter. Finally, CoreFirst Bank & Trust increased its position in Amazon.com by 1.1% in the 1st quarter. CoreFirst Bank & Trust now owns 3,620 shares of the e-commerce giant's stock worth $754,000 after purchasing an additional 40 shares during the last quarter. Institutional investors and hedge funds own 72.20% of the company's stock.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Amazon announced a multibillion-dollar data center campus in Missouri, reinforcing its AI infrastructure buildout and supporting AWS growth expectations.
• Positive Sentiment: Wall Street commentary continues to call AMZN a Strong Buy with about 34% implied upside, signaling ongoing analyst confidence.
• Positive Sentiment: Amazon’s custom-chip and cloud investments, including Graviton5 and broader AWS expansion, are being seen as margin- and moat-enhancing.
• Neutral Sentiment: SpaceX’s soaring valuation is drawing fresh attention to Amazon’s Project Leo satellite broadband business, adding longer-term optionality but not near-term earnings impact. Article Title
• Neutral Sentiment: Amazon’s role in prompting U.S. restrictions on Anthropic’s AI models highlights its influence in AI safety, though the direct financial impact is unclear. Article Title
• Negative Sentiment: Some investors remain focused on Amazon’s heavy AI capex and valuation, which can weigh on the stock despite strong fundamentals.

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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