Amazon.com (NASDAQ:AMZN) Stock Price Up 3.9% After Earnings Beat

Key Points

• Amazon shares rose 3.9% after the company reported quarterly earnings of $5.75 per share, far above the $1.82 consensus estimate, while revenue of $200.61 billion also exceeded expectations.
• Analyst sentiment remains favorable: 57 analysts rate AMZN a Buy and three rate it Hold, with an average price target of $313.43.
• Investors are focused on AWS growth and Amazon’s planned AI infrastructure spending, while concerns about rising costs, weaker free cash flow and execution risks could limit further gains.

Amazon.com, Inc. (NASDAQ:AMZN) shares rose 3.9% on Thursday following a stronger than expected earnings report. The stock traded as high as $239.82 and last traded at $235.50. Approximately 92,235,291 shares changed hands during trading, an increase of 87% from the average daily volume of 49,428,434 shares. The stock had previously closed at $226.65.

The e-commerce giant reported $5.75 earnings per share for the quarter, topping the consensus estimate of $1.82 by $3.93. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The firm had revenue of $200.61 billion for the quarter, compared to analysts' expectations of $197.03 billion.

Trending Headlines about Amazon.com

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

• Positive Sentiment: AWS momentum is the main catalyst. Analysts expect cloud revenue growth of roughly 31%–33%, with advertising and improving e-commerce profitability providing additional support. Strong AWS results or an upbeat outlook could reinforce Amazon’s long-term growth story. What's Behind the Amazon Stock Bounce Ahead of Q2 Earnings?
• Positive Sentiment: AI infrastructure spending is viewed as a potential growth investment. Amazon’s planned roughly $200 billion in 2026 capital expenditures is aimed largely at data centers and AI capacity. Investors are weighing whether rising customer demand will generate sufficient AWS revenue and profit to justify the investment. Amazon on deck to report earnings after the bell with cloud, capex in focus
• Positive Sentiment: Zoox reached a commercial milestone. U.S. regulators granted Amazon’s autonomous-vehicle unit a temporary exemption allowing limited paid rides in its purpose-built, steering-wheel-free robotaxis. The approval could create a new long-term growth avenue, though near-term financial contribution is likely limited. Amazon's Zoox wins first US approval for paid robotaxis with no human controls
• Neutral Sentiment: Options markets imply substantial post-earnings volatility. Traders are positioning for an approximately 6.9% move after the report, highlighting the unusually high expectations already embedded in AMZN’s valuation. Amazon Stock Options Traders Expect a 6.9% Move After Today's Earnings Report
• Negative Sentiment: Spending and execution concerns could limit the advance. Reports of costly AI deployment errors, weaker free cash flow, rising financing needs and competition from Microsoft Azure are increasing scrutiny of Amazon’s AI strategy. Scaling back parts of its homegrown AI-model effort may also be interpreted as a retreat from frontier-model competition. Amazon Contends With Unplanned Overspending on AI

Analyst Upgrades and Downgrades

AMZN has been the topic of a number of recent research reports. Deutsche Bank Aktiengesellschaft raised their price target on shares of Amazon.com from $290.00 to $315.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Mizuho decreased their target price on shares of Amazon.com from $325.00 to $320.00 and set an "outperform" rating on the stock in a research report on Tuesday. Piper Sandler set a $330.00 target price on shares of Amazon.com in a report on Thursday, June 11th. Oppenheimer lifted their price target 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, Robert W. Baird boosted their price target on Amazon.com from $285.00 to $300.00 and gave the company an "outperform" rating in a research note on Thursday, April 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, Amazon.com currently has an average rating of "Moderate Buy" and an average price target of $313.43.

Insider Buying and Selling at Amazon.com

In other Amazon.com news, CEO Matthew S. Garman sold 15,467 shares of the company's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $263.40, for a total transaction of $4,074,007.80. Following the completion of the sale, the chief executive officer directly owned 14,159 shares in the company, valued at $3,729,480.60. This represents a 52.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the company's stock in a transaction 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 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. Insiders have sold a total of 136,719 shares of company stock worth $36,703,652 in the last three months. Company insiders own 8.90% of the company's stock.

Institutional Trading of Amazon.com

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its position in Amazon.com by 1.1% during the 1st quarter. Vanguard Group Inc. now owns 832,274,556 shares of the e-commerce giant's stock worth $158,348,557,000 after purchasing an additional 8,913,959 shares in the last quarter. State Street Corp boosted its position in Amazon.com by 1.8% in the fourth quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant's stock valued at $89,708,913,000 after buying an additional 6,971,680 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Amazon.com by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 225,120,994 shares of the e-commerce giant's stock worth $51,753,622,000 after buying an additional 2,479,324 shares during the last quarter. Norges Bank bought a new stake in shares of Amazon.com during the fourth quarter worth $32,868,735,000. Finally, Auto Owners Insurance Co increased its holdings in shares of Amazon.com by 27,376.7% during the fourth quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant's stock worth $2,272,397,000 after buying an additional 98,090,585 shares in the last quarter. 72.20% of the stock is currently owned by institutional investors.

Amazon.com Stock Up 3.9%

The company has a market capitalization of $2.53 trillion, a price-to-earnings ratio of 28.17, a P/E/G ratio of 1.73 and a beta of 1.46. 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 firm's fifty day moving average price is $246.25 and its 200-day moving average price is $236.06.

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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