Amazon.com (NASDAQ:AMZN) Trading Up 1.4% - What's Next?

Key Points

• Amazon shares rose 1.4% on Wednesday, trading as high as $244.90 on volume slightly above average. The stock last traded at $241.70, up from the prior close of $238.34.
• Recent business news was upbeat: AWS launched a $1 billion AI engineering unit to work with customers, and Prime Day sales reportedly hit a record $26.4 billion. The article also noted U.S. regulators lifted a ban on Anthropic’s top AI model, which could be positive for Amazon’s cloud and AI exposure.
• Analyst sentiment remains favorable, with 57 Buy ratings versus 3 Holds and a consensus target price of $312.78. Amazon’s latest earnings also beat expectations, with revenue up 16.6% year over year and EPS well above consensus.

Amazon.com, Inc. (NASDAQ:AMZN) was up 1.4% on Wednesday . The company traded as high as $244.90 and last traded at $241.70. 52,426,293 shares changed hands during trading, an increase of 3% from the average daily volume of 50,804,711 shares. The stock had previously closed at $238.34.

More Amazon.com News

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

• Positive Sentiment: AWS launched a $1 billion AI engineering unit to embed specialist engineers with customers, which could accelerate enterprise AI adoption and support cloud growth. Article Title
• Positive Sentiment: Prime Day sales reportedly reached a record $26.4 billion, signaling strong demand across Amazon’s retail and membership businesses. Article Title
• Positive Sentiment: U.S. authorities lifted a ban on Anthropic’s top AI model, a potentially favorable development for Amazon’s AI-related cloud exposure. Article Title

Wall Street Analyst Weigh In

A number of research analysts have issued reports on AMZN shares. Guggenheim reissued a "buy" rating and issued a $320.00 price target (up from $300.00) on shares of Amazon.com in a report on Thursday, April 30th. DA Davidson increased their price target on shares of Amazon.com from $175.00 to $250.00 and gave the stock a "neutral" rating in a report on Thursday, April 30th. Moffett Nathanson raised their price target on shares of Amazon.com from $283.00 to $288.00 and gave the company a "buy" rating in a research report on Tuesday, April 7th. Royal Bank Of Canada reaffirmed a "buy" rating on shares of Amazon.com in a report on Tuesday, June 16th. Finally, William Blair reiterated an "outperform" rating on shares of Amazon.com in a research report on Thursday, April 9th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Amazon.com presently has a consensus rating of "Moderate Buy" and a consensus target price of $312.78.

Amazon.com Stock Up 1.4%

The stock has a market cap of $2.60 trillion, a price-to-earnings ratio of 28.91, a PEG ratio of 1.80 and a beta of 1.44. The business's 50 day moving average is $255.10 and its 200-day moving average is $234.31. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.18.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share for the quarter, topping the consensus estimate of $1.63 by $1.15. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The firm had revenue of $181.52 billion during the quarter, compared to the consensus estimate of $177.28 billion. During the same quarter in the prior year, the firm earned $1.59 EPS. The company's revenue for the quarter was up 16.6% on a year-over-year basis. On average, sell-side analysts predict that Amazon.com, Inc. will post 7.71 EPS for the current fiscal year.

Insider Activity

In related news, SVP David Zapolsky sold 9,270 shares of the 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 completion of the transaction, the senior vice president directly owned 41,190 shares of the company's stock, valued at approximately $11,060,750.70. This represents a 18.37% decrease in their position. The transaction was disclosed in a document filed 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 Douglas J. Herrington sold 1,000 shares of the firm's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $266.19, for a total value of $266,190.00. Following the completion of the transaction, the chief executive officer owned 485,527 shares in the company, valued at $129,242,432.13. The trade was a 0.21% decrease in their position. 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 sold 194,774 shares of company stock valued at $51,403,934 in the last three months. Company insiders own 8.90% of the company's stock.

Hedge Funds Weigh In On Amazon.com

Institutional investors have recently added to or reduced their stakes in the stock. MilWealth Group LLC boosted 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 purchasing an additional 79 shares during the last quarter. Lifetime Wealth Management P.C. acquired a new stake in shares of Amazon.com during the 4th quarter worth approximately $45,000. Elkhorn Partners Limited Partnership raised 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 buying an additional 180 shares during the period. Fairway Wealth LLC raised its position in shares of Amazon.com by 95.6% during the 4th quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant's stock valued at $51,000 after buying an additional 108 shares during the period. Finally, Prudent Man Investment Management Inc. raised its position in shares of Amazon.com by 87.7% during the 4th quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant's stock valued at $53,000 after buying an additional 107 shares during the period. Hedge funds and other institutional investors own 72.20% of the company's stock.

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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