Amazon.com (NASDAQ:AMZN) Lowered to "Moderate Buy" Rating by Phillip Securities

Key Points

• Phillip Securities downgraded Amazon from “strong buy” to “moderate buy,” although the broader analyst consensus remains “moderate buy,” with 56 buy ratings and a consensus price target of $322.56.
• Amazon shares rose 4.6% to open at $284.02, near their 12-month high, following a quarterly earnings beat. The company reported $5.75 in EPS versus $1.82 expected and revenue of $200.61 billion, up 19.6% year over year.
• Analysts continue to raise price targets on optimism around AWS growth and artificial-intelligence demand, while investors remain focused on the substantial costs of Amazon’s AI and data-center expansion.

Amazon.com (NASDAQ:AMZN) was downgraded by stock analysts at Phillip Securities from a "strong-buy" rating to a "moderate buy" rating in a research note issued on Monday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the company. Wolfe Research reissued an "outperform" rating and set a $315.00 price target on shares of Amazon.com in a report on Friday. Robert W. Baird set a $310.00 price target on shares of Amazon.com and gave the stock an "outperform" rating in a research report on Friday. Barclays reaffirmed an "overweight" rating and issued a $365.00 price objective (up from $330.00) on shares of Amazon.com in a report on Friday. Benchmark boosted their target price on shares of Amazon.com from $370.00 to $400.00 and gave the company a "buy" rating in a research note on Friday. Finally, Guggenheim restated a "buy" rating and issued a $320.00 target price (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. Fifty-six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, Amazon.com currently has an average rating of "Moderate Buy" and a consensus price target of $322.56.

Amazon.com Stock Up 4.6%

Shares of Amazon.com stock opened at $284.02 on Monday. The stock has a market capitalization of $3.06 trillion, a price-to-earnings ratio of 22.85, a PEG ratio of 2.01 and a beta of 1.45. Amazon.com has a twelve month low of $196.00 and a twelve month high of $287.20. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The business's 50 day simple moving average is $246.05 and its 200-day simple moving average is $236.44.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.82 by $3.93. The business had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The business's revenue for the quarter was up 19.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.68 EPS. Equities research analysts forecast that Amazon.com will post 7.84 earnings per share for the current year.

Insiders Place Their Bets

In other Amazon.com news, CEO Douglas J. Herrington sold 1,000 shares of the firm's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $239.77, for a total transaction of $239,770.00. Following the transaction, the chief executive officer owned 484,527 shares of the company's stock, valued at approximately $116,175,038.79. This trade represents a 0.21% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the business's stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $262.38, for a total transaction of $620,003.94. Following the sale, the vice president owned 119,780 shares in the company, valued at $31,427,876.40. This trade represents a 1.93% decrease in their ownership of the stock. 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. Over the last ninety days, insiders have sold 76,867 shares of company stock valued at $20,253,702. Corporate insiders own 8.90% of the company's stock.

Institutional Investors Weigh In On Amazon.com

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AMZN. Trust Asset Management LLC grew its holdings in Amazon.com by 3.3% during the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant's stock worth $26,000 after acquiring an additional 3,414 shares during the period. MilWealth Group LLC lifted its holdings in Amazon.com by 79.0% in the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant's stock valued at $41,000 after acquiring an additional 79 shares during the last quarter. Lifetime Wealth Management P.C. bought a new position in shares of Amazon.com during the 4th quarter valued at about $45,000. Elkhorn Partners Limited Partnership boosted its position in shares of 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 in the last quarter. Finally, Fairway Wealth LLC grew its stake in shares of Amazon.com by 95.6% in the 4th quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant's stock worth $51,000 after purchasing an additional 108 shares during the last quarter. Institutional investors own 72.20% of the company's stock.

Key Amazon.com News

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

• Positive Sentiment: AWS growth and AI demand drove the rally. AWS reportedly posted its fastest growth in 18 quarters, while CEO Matt Garman said demand still significantly exceeds available capacity and is extending into 2028. Analysts also highlighted a reported $496 billion AWS backlog and the potential for AWS to become a $1 trillion revenue business. Amazon Stock Rises as AWS Sees a Major Shift in AI Demand
• Positive Sentiment: Amazon surpassed the $3 trillion market-capitalization milestone. Shares reached a record high as investors became more confident that cloud growth and improving returns on AI infrastructure can justify the company’s large capital-investment program. The milestone strengthened positive sentiment across major AI and cloud stocks. Amazon Enters $3 Trillion Club as AI Optimism Sweeps Through Wall Street
• Positive Sentiment: Wall Street raised its valuation expectations. Multiple analysts increased AMZN price targets after the earnings beat, with bullish commentary emphasizing AWS margins, long-term AI infrastructure demand and growth beyond e-commerce. The broader market rally, falling crude oil prices and lower Treasury yields also supported growth stocks. JPMorgan Raises Amazon Stock Price Target After Earnings
• Neutral Sentiment: AWS announced a multiyear collaboration with Superblocks to offer secure enterprise AI application development through Amazon Bedrock. The agreement supports AWS’s competitive positioning, but its near-term financial impact was not disclosed. Superblocks and AWS Announce Strategic Collaboration
• Negative Sentiment: Investors remain concerned about the cost of the AI expansion. Amazon raised projected 2026 capital spending by roughly $20 billion, with total AI and data-center investment discussed at more than $220 billion. Debt has also increased, raising questions about financing, free cash flow and the timing of returns. Amazon Raised 2026 CapEx by $20 Billion
• Negative Sentiment: Amazon faces consumer lawsuits concerning alleged toxic heavy metals in protein powder and seafood sustainability claims. These matters appear unlikely to drive the current move, but they add potential legal, reputational and compliance risk. Amazon Sued Over Protein Powder Allegations

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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