Amazon.com (NASDAQ:AMZN) Trading 3.1% Higher - Here's Why

Key Points

• Amazon shares rose 3.1% on Monday, trading as high as $247.81 after closing at $238.55 the prior session, even as volume came in below average.
• Investor optimism was lifted by reports of strong operating momentum in AWS and AI, including a fifth straight earnings beat, AWS’s fastest growth in 15 quarters, and plans to spend about $200 billion in capex this year.
• Wall Street remains bullish: several firms raised price targets, and Amazon now has a Moderate Buy consensus with a target price of $312.78, while the company also posted better-than-expected quarterly results recently.

Amazon.com, Inc. (NASDAQ:AMZN) traded up 3.1% during trading on Monday . The stock traded as high as $247.81 and last traded at $246.02. 41,206,604 shares traded hands during mid-day trading, a decline of 14% from the average session volume of 47,982,906 shares. The stock had previously closed at $238.55.

Trending Headlines about Amazon.com

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

• Positive Sentiment: Amazon is drawing bullish attention after reports highlighted its fifth straight earnings beat, AWS posting its fastest growth in 15 quarters, and its in-house chips business running at about a $20 billion annual revenue rate. Can Amazon Reach $300 Per Share Before Year-End 2026?
• Positive Sentiment: Investor sentiment improved after reports that Amazon plans to spend around $200 billion in capex this year, signaling aggressive investment in AI and cloud capacity. Amazon Stock (AMZN) Rises on This AI News
• Positive Sentiment: Amazon’s Graviton5 custom processor became generally available for AWS customers, which could improve cloud margins and deepen the company’s competitive moat in AI workloads. Amazon Graviton5 Chip Aims To Deepen AWS AI Margins And Moat
• Positive Sentiment: Amazon is expanding internationally, including a push into South Africa and a larger India infrastructure buildout, both of which point to additional long-term revenue opportunities. Amazon Accelerates India Infrastructure Push: How to Play the Stock
• Neutral Sentiment: Amazon’s warning about security issues in Anthropic’s latest AI models led to a U.S. crackdown and shutdown of those models; while it may highlight Amazon’s influence, the episode also keeps scrutiny on one of its key AI investments. Amazon CEO reportedly raised Anthropic Fable concerns prior to U.S. order forcing models offline

Wall Street Analyst Weigh In

AMZN has been the subject of several analyst reports. Oppenheimer increased their target price on shares of Amazon.com from $275.00 to $320.00 and gave the stock an "outperform" rating in a report on Thursday, April 30th. Telsey Advisory Group lifted their price target on shares of Amazon.com from $300.00 to $315.00 and gave the company an "outperform" rating in a report on Thursday, April 30th. Benchmark upped their price target on shares of Amazon.com from $275.00 to $370.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. TD Securities raised shares of Amazon.com to a "buy" rating in a research note on Monday, April 13th. Finally, HSBC raised their price objective on shares of Amazon.com from $280.00 to $310.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Fifty-seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Amazon.com has a consensus rating of "Moderate Buy" and a consensus price target of $312.78.

Amazon.com Stock Up 3.1%

The company has a 50-day moving average price of $253.49 and a 200 day moving average price of $233.67. The firm has a market capitalization of $2.65 trillion, a PE ratio of 29.43, a P/E/G ratio of 1.79 and a beta of 1.45. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The e-commerce giant reported $2.78 EPS for the quarter, beating the consensus estimate 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 previous year, the business earned $1.59 earnings per share. The business's revenue was up 16.6% on a year-over-year basis. Analysts forecast that Amazon.com, Inc. will post 7.71 earnings per share for the current year.

Insider Activity at Amazon.com

In other Amazon.com news, CEO Matthew S. Garman sold 15,467 shares of the stock in a transaction dated 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 completion of the transaction, the chief executive officer owned 14,159 shares of the company's stock, valued at $3,729,480.60. This represents a 52.21% decrease in their position. 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, CEO Andrew R. Jassy sold 31,352 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $275.00, for a total transaction of $8,621,800.00. Following the transaction, the chief executive officer directly owned 2,175,766 shares of the company's stock, valued at $598,335,650. This trade represents a 1.42% 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 sold 195,774 shares of company stock worth $51,614,434 over the last 90 days. Company insiders own 8.90% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Compagnie Lombard Odier SCmA acquired a new stake in Amazon.com during the 3rd quarter worth $451,642,000. Narwhal Capital Management raised its stake in Amazon.com by 2.3% during the 4th quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant's stock worth $49,997,000 after acquiring an additional 4,854 shares in the last quarter. Weaver Capital Management LLC raised its stake in Amazon.com by 13.6% during the 4th quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant's stock worth $9,063,000 after acquiring an additional 4,713 shares in the last quarter. Ethos Financial Group LLC raised its stake in Amazon.com by 9.6% during the 4th quarter. Ethos Financial Group LLC now owns 36,485 shares of the e-commerce giant's stock worth $8,421,000 after acquiring an additional 3,196 shares in the last quarter. Finally, Baltimore Washington Financial Advisors Inc. raised its stake in Amazon.com by 1.9% during the 3rd quarter. Baltimore Washington Financial Advisors Inc. now owns 239,862 shares of the e-commerce giant's stock worth $52,667,000 after acquiring an additional 4,558 shares in the last quarter. Institutional investors own 72.20% of the company's stock.

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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