Amazon.com (NASDAQ:AMZN) Earns Outperform Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed its “Outperform” rating on Amazon and set a $330 price target, implying approximately 37.6% upside from the prior close.
• Analyst sentiment remains broadly positive: Amazon has a consensus “Moderate Buy” rating and an average price target of $322, supported by multiple Buy, Outperform, and Overweight recommendations.
• Amazon slightly missed quarterly expectations, reporting $1.89 in EPS versus $1.97 expected and $201.94 billion in revenue versus $202.22 billion forecast, while revenue still grew 12.1% year over year.

Amazon.com (NASDAQ:AMZN - Get Free Report)'s stock had its "outperform" rating reissued by equities researchers at Royal Bank Of Canada in a note issued to investors on Friday, Benzinga reports. They presently have a $330.00 price target on the e-commerce giant's stock. Royal Bank Of Canada's price objective suggests a potential upside of 37.64% from the company's previous close.

Other analysts have also issued research reports about the company. Phillip Securities lowered Amazon.com from a "strong-buy" rating to a "moderate buy" rating in a research note on Monday, August 3rd. Oppenheimer reissued an "outperform" rating on shares of Amazon.com in a research report on Friday, July 31st. Raymond James Financial reaffirmed an "outperform" rating and set a $250.00 price objective on shares of Amazon.com in a research note on Friday. Piper Sandler reaffirmed an "overweight" rating and set a $320.00 price target (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Finally, Tigress Financial reiterated a "buy" rating and issued a $385.00 price target (up from $315.00) on shares of Amazon.com in a report on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, Amazon.com currently has a consensus rating of "Moderate Buy" and a consensus price target of $322.00.

Amazon.com Price Performance

NASDAQ AMZN traded down $4.03 during mid-day trading on Friday, hitting $239.76. The stock had a trading volume of 47,847,389 shares, compared to its average volume of 46,065,320. The company has a market cap of $2.59 trillion, a price-to-earnings ratio of 19.40, a P/E/G ratio of 1.98 and a beta of 1.45. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. Amazon.com has a 52-week low of $196.00 and a 52-week high of $287.20. The company has a 50 day simple moving average of $254.67 and a 200 day simple moving average of $243.12.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The e-commerce giant reported $1.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.97 by ($0.08). Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The business had revenue of $201.94 billion during the quarter, compared to analysts' expectations of $202.22 billion. During the same period last year, the company earned $1.95 EPS. The firm's revenue for the quarter was up 12.1% on a year-over-year basis. Equities analysts forecast that Amazon.com will post 8.00 EPS for the current fiscal year.

Insider Activity

In related news, CEO Andrew Jassy sold 20,000 shares of Amazon.com stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $5,180,200.00. Following the completion of the transaction, the chief executive officer directly owned 2,235,766 shares of the company's stock, valued at $579,085,751.66. The trade was a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the sale, the senior vice president directly owned 41,190 shares in the company, valued at $10,699,926.30. This trade represents a 18.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 71,589 shares of company stock worth $18,580,515 over the last ninety days. Corporate insiders own 8.90% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of AMZN. Integrity Advisory Solutions LLC increased its holdings in shares of Amazon.com by 16.1% in the third quarter. Integrity Advisory Solutions LLC now owns 19,941 shares of the e-commerce giant's stock valued at $4,968,000 after purchasing an additional 2,765 shares during the last quarter. Spectrum Wealth Advisory Group LLC boosted its position in shares of Amazon.com by 2.1% in the third quarter. Spectrum Wealth Advisory Group LLC now owns 9,241 shares of the e-commerce giant's stock valued at $2,302,000 after acquiring an additional 190 shares during the period. Reston Wealth Management LLC raised its stake in Amazon.com by 5.4% in the 3rd quarter. Reston Wealth Management LLC now owns 4,291 shares of the e-commerce giant's stock worth $1,069,000 after purchasing an additional 219 shares in the last quarter. Mountain Pacific Investment Advisers LLC raised its position in shares of Amazon.com by 12.1% in the third quarter. Mountain Pacific Investment Advisers LLC now owns 1,810 shares of the e-commerce giant's stock valued at $451,000 after buying an additional 195 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund raised its holdings in Amazon.com by 0.3% in the 3rd quarter. Oregon Public Employees Retirement Fund now owns 1,206,785 shares of the e-commerce giant's stock valued at $300,670,000 after acquiring an additional 3,134 shares in the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: AWS growth accelerated sharply. Amazon Web Services revenue rose 39% to approximately $46 billion, its fastest growth in nearly five years. Management said AWS could grow more than 40% in both 2027 and 2028, reflecting strong AI-related demand and a sizable cloud backlog. AMZN Q3 Earnings Call Highlights AWS Growth and AI Spending
• Positive Sentiment: Amazon is expanding its AI-chip opportunity. CEO Andy Jassy said Amazon expects to begin selling its Trainium AI chips to outside customers by late 2027, potentially creating a new revenue stream and reducing reliance on Nvidia hardware. Amazon Says It Will Start Selling Its AI Chips to Other Companies in 2027
• Positive Sentiment: Analysts remain broadly constructive. Guggenheim reaffirmed a Buy rating with a $320 target, while JPMorgan cited a potential path toward a $1 trillion AWS business. Other firms maintained Outperform or Overweight ratings despite trimming targets. Amazon Stock Could Have Nearly 50% Upside, JPMorgan Says
• Negative Sentiment: Amazon missed third-quarter expectations. Adjusted earnings were $1.89 per share versus roughly $1.97-$2.01 expected, while revenue of $201.94 billion was slightly below consensus. Fourth-quarter sales guidance also came in below Wall Street forecasts, raising concerns about holiday-season retail demand. Amazon Projects Fourth-Quarter Sales Below Estimates
• Negative Sentiment: AI spending is weighing on cash flow. Amazon spent about $77.3 billion on property and equipment in the quarter, pushed free cash flow to a reported $42.4 billion trailing loss, and increased debt substantially. Investors are questioning how quickly AWS growth will translate into returns on the company’s roughly $220 billion 2026 capital-spending plan. Amazon Slides as Tech Pressure Mounts After Earnings

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company founded by Jeff Bezos in 1994. Originally launched as an online bookstore, the company has expanded into a broad digital marketplace offering consumer products across numerous categories, including electronics, household goods, apparel, groceries and other merchandise. Amazon also sells products under its own brands and provides logistics, fulfillment and delivery services that support its retail operations and third-party sellers.

The company's principal businesses include online and physical retail, Amazon Web Services (AWS), digital advertising, subscription services and consumer technology.

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