Amazon.com's (AMZN) "Buy" Rating Reaffirmed at Jefferies Financial Group

Key Points

• Jefferies reaffirmed a "Buy" on Amazon and the stock's consensus is a Moderate Buy with a $287.39 average price target, versus a recent share price near $237.56.
• Management disclosed that AWS AI revenue exceeds $15B and the custom‑chip business has a >$20B annual run‑rate, with plans to potentially sell chips to third parties—providing a high‑margin growth story backed by large AI capex and data‑center buildouts.
• Near‑term risks remain as heavy capital spending has materially reduced free cash flow, and notable insider selling (including the CEO) could weigh on investor sentiment and margins.

Amazon.com (NASDAQ:AMZN)'s stock had its "buy" rating reissued by analysts at Jefferies Financial Group in a report released on Friday,MarketScreener reports.

A number of other research analysts also recently issued reports on AMZN. Daiwa Securities Group decreased their target price on shares of Amazon.com from $300.00 to $280.00 and set a "buy" rating for the company in a research report on Wednesday, February 11th. Citizens Jmp reiterated a "market outperform" rating and set a $315.00 price objective on shares of Amazon.com in a research note on Friday. New Street Research decreased their price objective on Amazon.com from $285.00 to $280.00 and set a "buy" rating for the company in a report on Monday, March 30th. President Capital lowered their price objective on Amazon.com from $320.00 to $296.00 and set a "buy" rating on the stock in a research report on Tuesday, February 10th. Finally, Wall Street Zen lowered shares of Amazon.com from a "buy" rating to a "hold" rating in a report on Saturday, January 10th. One analyst has rated the stock with a Strong Buy rating, fifty-three have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $287.39.

Amazon.com Price Performance

Shares of NASDAQ AMZN opened at $237.56 on Friday. Amazon.com has a 52 week low of $165.29 and a 52 week high of $258.60. The business's 50 day moving average price is $211.98 and its 200 day moving average price is $224.05. The company has a quick ratio of 0.88, a current ratio of 1.05 and a debt-to-equity ratio of 0.16. The firm has a market cap of $2.55 trillion, a P/E ratio of 33.27, a P/E/G ratio of 1.66 and a beta of 1.38.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The e-commerce giant reported $1.95 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 business's revenue was up 13.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.86 earnings per share. On average, sell-side analysts expect that Amazon.com will post 6.31 earnings per share for the current year.

Insider Activity

In other Amazon.com news, VP Shelley Reynolds sold 2,695 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $205.90, for a total value of $554,900.50. Following the sale, the vice president owned 119,780 shares of the company's stock, valued at $24,662,702. The trade was a 2.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Matthew S. Garman sold 17,751 shares of the firm's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $205.22, for a total value of $3,642,860.22. Following the transaction, the chief executive officer owned 9,405 shares of the company's stock, valued at approximately $1,930,094.10. This represents a 65.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 72,686 shares of company stock worth $14,899,239. 9.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Amazon.com

Several large investors have recently added to or reduced their stakes in AMZN. Norges Bank purchased a new position in shares of Amazon.com in the 4th quarter valued at about $32,868,735,000. Auto Owners Insurance Co lifted its position in shares of Amazon.com by 27,376.7% during 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 during the last quarter. J. Stern & Co. LLP grew its stake in shares of Amazon.com by 20,598.0% during the fourth quarter. J. Stern & Co. LLP now owns 87,982,814 shares of the e-commerce giant's stock worth $20,308,193,000 after purchasing an additional 87,557,736 shares in the last quarter. Nuveen LLC purchased a new position in Amazon.com in the first quarter valued at $11,674,091,000. Finally, Cardano Risk Management B.V. raised its stake in Amazon.com by 879.4% in the fourth 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 buying an additional 25,017,588 shares in the last quarter. 72.20% of the stock is owned by hedge funds and other institutional investors.

More Amazon.com News

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

• Positive Sentiment: Management disclosed that AWS AI revenue exceeds $15B and Amazon’s custom‑chip business has crossed a >$20B annual run‑rate, with the company indicating it may sell chips to third parties — this gives investors a credible, high‑margin growth story beyond retail. Read More.
• Positive Sentiment: Andy Jassy defended a large AI capex plan and confirmed the AI business momentum in his shareholder letter, helping calm some investor concerns about the company’s heavy spending. Read More.
• Positive Sentiment: Amazon announced a major data‑center expansion (reported buildout figures and investments) that underpins AWS/A I capacity growth — a tangible commitment that supports longer‑term revenue upside for cloud and AI services. Read More.
• Positive Sentiment: Amazon Pharmacy will stock Eli Lilly’s new GLP‑1 pill Foundayo with same‑day delivery and One Medical kiosk distribution expansion — a clear retail/pharmacy revenue and customer‑engagement catalyst. Read More.
• Neutral Sentiment: Wall Street continues to re‑rate AMZN: several analysts raised price targets and upgraded the stock after the shareholder letter and operational updates — this supports momentum but depends on execution. Read More.
• Neutral Sentiment: Macro pressures (energy costs, Iran conflict) are prompting some companies — including Amazon — to adjust pricing and add surcharges, a mixed input for margins and consumer demand. Read More.
• Negative Sentiment: Heavy capital spending has materially reduced free cash flow (management acknowledged a large fall year‑over‑year), keeping near‑term margin and cash‑flow concerns on the table for value‑focused investors. Read More.
• Negative Sentiment: Potential strategic moves (e.g., reported talks about buying Globalstar) introduce execution and acquisition‑price risks; the market may penalize deals seen as expensive or distracting from core execution. Read More.

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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