Amazon.com (NASDAQ:AMZN) Trading 3.5% Higher - Should You Buy?

Key Points

• Delta selects Amazon Leo to provide in‑flight broadband on roughly 500 aircraft starting in 2028, giving Amazon a major commercial anchor that accelerates its satellite rollout and positions it to challenge Starlink.
• AWS momentum and analyst upgrades: Citi and other firms raised targets on Amazon citing a stronger AWS outlook and corporate wins (e.g., TGS naming AWS preferred for HPC/AI), leaving a consensus "Moderate Buy" with an average price target of $286.57.
• Market move and risks: AMZN shares jumped about 3.5% to ~$208 on higher volume, but senior departures in its AI chip unit, macro energy/cost risks to AI capex, and notable insider selling temper near‑term execution and margin visibility.

Amazon.com, Inc. (NASDAQ:AMZN)'s share price was up 3.5% on Tuesday . The stock traded as high as $210.28 and last traded at $208.0390. Approximately 55,625,347 shares were traded during trading, an increase of 9% from the average daily volume of 51,004,910 shares. The stock had previously closed at $200.95.

Amazon.com News Roundup

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

• Positive Sentiment: Delta selects Amazon Leo to provide in‑flight broadband on ~500 aircraft starting in 2028 — a large commercial anchor that accelerates Amazon's satellite rollout, helps monetize Leo hardware/service capacity, and positions Amazon to challenge Starlink on a high‑visibility, recurring‑revenue contract. Amazon, Delta team up for in-flight Wi-Fi (Reuters)
• Positive Sentiment: Citi raised its price target on AMZN, citing stronger AWS outlook — the analyst upgrade/target lift gives buy‑side confidence and supports upside to consensus estimates for cloud revenue. Citi Raises Target Price for Amazon.com (Yahoo)
• Positive Sentiment: TGS selected AWS as its preferred cloud provider for HPC and generative AI work — another corporate win for AWS that underpins durable demand for cloud services and high‑margin contracts. TGS Announces AWS as its Preferred Cloud Provider (Yahoo)
• Positive Sentiment: Amazon MGM's "Project Hail Mary" topped $300M global box office — a content win that supports Prime Video monetization, merchandising and subscriber engagement (an underappreciated contribution to services revenue). 'Project Hail Mary' box office (CNBC)
• Positive Sentiment: Amazon announced new Prime Business and Amazon Business credit cards for small businesses — expands fintech/rewards monetization and sticky merchant/checkout economics that can lift transaction and advertising flows. New Prime Business and Amazon Business Credit Cards (BusinessWire)
• Positive Sentiment: Courts blocked Perplexity from scraping Amazon — reinforces Amazon's control over retail data and its advertising/traffic economics, reducing a potential competitive threat to shopping and ad monetization. Amazon court win vs Perplexity (Yahoo)
• Neutral Sentiment: Mixed analyst and market commentary: some firms highlight Amazon as a buy amid the pullback (Evercore/Jefferies mentions), while others flag nearer‑term valuation/market‑risk concerns — creates both buying interest and caution in trading. Amazon stock down YTD but analyst upside (Blockonomi)
• Neutral Sentiment: Amazon says it intends to revisit smartphones — potential long‑term product play but with long timelines and execution risk; not an immediate revenue driver. Amazon intends to revive smartphones (Yahoo)
• Negative Sentiment: Senior departures from Amazon's AI chip unit — leadership turnover raises questions about execution and timing for in‑house silicon efforts that support AWS AI margins. AI chip executive exit (Barchart)
• Negative Sentiment: Macro risk to AI capex: S&P Global warns massive planned Big Tech AI spending faces an energy/cost shock if the geopolitical situation keeps energy prices elevated — could pressure margins and delay some infrastructure builds. AI capex energy risk (Yahoo)

Wall Street Analysts Forecast Growth

Several research analysts have commented on AMZN shares. Tigress Financial raised their price objective on Amazon.com from $305.00 to $315.00 and gave the stock a "buy" rating in a report on Wednesday, March 25th. Rothschild & Co Redburn set a $230.00 price objective on shares of Amazon.com in a report on Wednesday, January 21st. Barclays reissued a "buy" rating on shares of Amazon.com in a research note on Monday, March 23rd. TD Cowen reaffirmed a "buy" rating and set a $300.00 target price on shares of Amazon.com in a research report on Monday, March 23rd. Finally, Royal Bank Of Canada reissued an "outperform" rating and issued a $300.00 price target on shares of Amazon.com in a research report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, fifty-three have given a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $286.57.

Amazon.com Price Performance

The stock has a 50-day moving average price of $215.66 and a two-hundred day moving average price of $224.87. The company has a current ratio of 1.05, a quick ratio of 0.88 and a debt-to-equity ratio of 0.16. The stock has a market cap of $2.23 trillion, a price-to-earnings ratio of 29.02, a PEG ratio of 1.49 and a beta of 1.40.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its earnings results on Thursday, February 5th. The e-commerce giant reported $1.95 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.97 by ($0.02). The business had revenue of $213.39 billion for the quarter, compared to analyst estimates of $211.02 billion. Amazon.com had a net margin of 10.83% and a return on equity of 21.87%. The company's quarterly revenue was up 13.6% on a year-over-year basis. During the same period in the prior year, the company earned $1.86 earnings per share. As a group, equities research analysts forecast that Amazon.com, Inc. will post 6.31 EPS for the current year.

Insider Transactions at Amazon.com

In related news, CEO Matthew S. Garman sold 17,751 shares of Amazon.com stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $205.22, for a total value of $3,642,860.22. Following the completion of the sale, the chief executive officer directly owned 9,405 shares in the company, valued at $1,930,094.10. This trade represents a 65.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Douglas J. Herrington sold 6,835 shares of the firm's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $205.82, for a total transaction of $1,406,779.70. Following the completion of the transaction, the chief executive officer directly owned 522,361 shares of the company's stock, valued at approximately $107,512,341.02. This represents a 1.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 71,686 shares of company stock worth $14,688,739 over the last ninety days. 10.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Amazon.com

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its holdings in shares of Amazon.com by 2.1% in the 2nd quarter. Vanguard Group Inc. now owns 849,721,601 shares of the e-commerce giant's stock valued at $186,420,422,000 after buying an additional 17,447,045 shares during the period. State Street Corp raised its position in Amazon.com by 1.8% during 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 acquiring an additional 6,971,680 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Amazon.com by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 225,120,994 shares of the e-commerce giant's stock valued at $51,753,622,000 after acquiring an additional 2,479,324 shares during the period. Norges Bank acquired a new position in Amazon.com in the fourth quarter valued at approximately $32,868,735,000. Finally, Auto Owners Insurance Co boosted its position in Amazon.com by 27,376.7% in the 4th quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant's stock worth $2,272,397,000 after purchasing an additional 98,090,585 shares in the last quarter. 72.20% of the stock is owned by hedge funds and other institutional investors.

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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