Amazon.com (NASDAQ:AMZN) Trading Up 1.1% - Still a Buy?

Key Points

• Amazon shares rose 1.1% on Monday, with the stock trading around $249.99 after touching an intraday high of $252.89.
• Sentiment around Amazon remains bullish as analysts point to a massive AWS backlog, strong cloud demand, and a large AI investment plan that appears supported by real customer demand and contracted business.
• Despite the optimism, the upcoming July 30 earnings report is seen as a key test of whether Amazon’s heavy AI spending is translating into stronger cash flow and future growth.

Shares of Amazon.com, Inc. (NASDAQ:AMZN) rose 1.1% during trading on Monday . The stock traded as high as $252.89 and last traded at $249.99. Approximately 31,949,686 shares changed hands during mid-day trading, a decline of 36% from the average session volume of 49,705,992 shares. The stock had previously closed at $247.23.

Amazon.com News Summary

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

• Positive Sentiment: Analysts are lifting long-term growth forecasts after pointing to a roughly $485 billion AWS backlog and stronger cloud demand, reinforcing the case for Amazon’s AI-driven expansion. What Is Going on With Amazon Stock on Monday?
• Positive Sentiment: Commentary says Amazon’s $200 billion AI capex plan is backed by real demand, especially for Trainium chips and contracted business, which could support future revenue growth. Andy Jassy Said Amazon Isn't Investing $200 Billion in AI "On a Hunch."
• Positive Sentiment: Several bullish articles argue Amazon remains undervalued relative to its AI hyperscaler peers and could benefit as AI spending starts to convert into cash flow growth. Undervalued and Winning the AI Hyperscaler War
• Neutral Sentiment: Amazon Web Services hired a veteran Microsoft security executive, a sign of continued talent competition in cloud and security, but not an immediate financial catalyst. Veteran Microsoft security executive joins AWS
• Negative Sentiment: Some coverage continues to question Amazon’s cash generation, noting that operating cash flow is strong but free cash flow has been negative due to heavy investment spending. Big Tech Is Minting Mountains of Cash — But Amazon’s Is Vanishing
• Negative Sentiment: The upcoming July 30 earnings report is being framed as a make-or-break test for whether Amazon’s AI spending is paying off, keeping pressure on the stock if results disappoint. Amazon’s AI Spending Is About to Face Its Most Important AWS Test Yet

Analyst Upgrades and Downgrades

AMZN has been the topic of a number of recent research reports. Bank of America increased their price objective on Amazon.com from $298.00 to $310.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. DZ Bank increased their target price on shares of Amazon.com from $295.00 to $320.00 and gave the company a "buy" rating in a report on Monday, May 4th. DA Davidson lifted their price target on Amazon.com from $175.00 to $250.00 and gave the stock a "neutral" rating in a research note on Thursday, April 30th. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Amazon.com from $290.00 to $315.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Finally, UBS Group set a $315.00 price target on Amazon.com in a research note on Monday, June 1st. Fifty-seven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $312.76.

Amazon.com Trading Up 1.1%

The stock's 50 day moving average is $250.83 and its 200-day moving average is $235.96. The company has a current ratio of 1.18, a quick ratio of 1.01 and a debt-to-equity ratio of 0.27. The company has a market cap of $2.69 trillion, a P/E ratio of 29.90, a PEG ratio of 1.84 and a beta of 1.46.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share for the quarter, beating the consensus estimate of $1.63 by $1.15. The company had revenue of $181.52 billion during the quarter, compared to the consensus estimate of $177.28 billion. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The firm's quarterly revenue was up 16.6% compared to the same quarter last year. During the same quarter last year, the firm earned $1.59 earnings per share. Research analysts anticipate that Amazon.com, Inc. will post 7.75 earnings per share for the current fiscal year.

Insider Transactions at Amazon.com

In related news, CEO Douglas J. Herrington sold 1,000 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $239.77, for a total transaction of $239,770.00. Following the completion of the sale, the chief executive officer owned 484,527 shares in the company, valued at approximately $116,175,038.79. This represents a 0.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of the company's 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 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. 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 three months, insiders sold 144,274 shares of company stock valued at $38,716,204. Company insiders own 8.90% of the company's stock.

Hedge Funds Weigh In On Amazon.com

Institutional investors have recently bought and sold shares of the stock. Norges Bank bought a new stake in shares of Amazon.com during the 4th quarter valued at $32,868,735,000. Auto Owners Insurance Co lifted its position in shares of Amazon.com by 27,376.7% in 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. J. Stern & Co. LLP raised its holdings in shares of Amazon.com by 20,598.0% during the 4th quarter. J. Stern & Co. LLP now owns 87,982,814 shares of the e-commerce giant's stock worth $20,308,193,000 after acquiring an additional 87,557,736 shares in the last quarter. Nuveen LLC purchased a new stake in Amazon.com during the first quarter valued at $11,674,091,000. Finally, Cardano Risk Management B.V. lifted its holdings in shares of Amazon.com by 879.4% in the 4th quarter. Cardano Risk Management B.V. now owns 27,862,400 shares of the e-commerce giant's stock valued at $6,431,199,000 after acquiring an additional 25,017,588 shares during the last quarter. 72.20% of the stock is owned by 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.