Amazon.com (NASDAQ:AMZN) Stock Rating Reaffirmed as Buy by Guggenheim

Key Points

• Guggenheim reaffirmed its Buy rating on Amazon and set a $320 price target, implying approximately 33.4% upside. Analysts overall remain bullish, with a consensus “Moderate Buy” rating and average target of $322.
• Amazon’s latest quarter showed 12.1% year-over-year revenue growth to $201.94 billion, but EPS of $1.89 missed expectations and declined from $1.95 a year earlier.
• Accelerating AWS growth and AI expansion support Amazon’s long-term outlook, but investors remain concerned about negative free cash flow, significant capital spending and weaker-than-expected holiday-quarter guidance.

Amazon.com (NASDAQ:AMZN - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at Guggenheim in a research report issued on Friday, Benzinga reports. They presently have a $320.00 price target on the e-commerce giant's stock. Guggenheim's price target would suggest a potential upside of 33.43% from the company's current price.

AMZN has been the topic of several other reports. Robert W. Baird set a $310.00 price target on Amazon.com and gave the stock an "outperform" rating in a report on Friday, July 31st. Truist Financial set a $390.00 target price on Amazon.com in a research report on Friday. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $325.00 target price (up from $315.00) on shares of Amazon.com in a research note on Friday, July 31st. Needham & Company LLC reiterated a "buy" rating and issued a $300.00 target price on shares of Amazon.com in a report on Friday, July 31st. Finally, Wolfe Research reiterated an "outperform" rating and set a $315.00 target price on shares of Amazon.com in a report on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $322.00.

Amazon.com Stock Down 1.6%

AMZN opened at $239.82 on Friday. The company has a market capitalization of $2.59 trillion, a PE ratio of 19.16, a price-to-earnings-growth ratio of 1.98 and a beta of 1.45. The firm has a 50-day simple moving average of $254.67 and a two-hundred day simple moving average of $243.12. 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.

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 for the quarter, missing the consensus estimate of $1.97 by ($0.08). Amazon.com had a return on equity of 18.00% and a net margin of 17.44%. The business had revenue of $201.94 billion during the quarter, compared to the consensus estimate of $202.22 billion. During the same quarter in the prior year, the firm posted $1.95 EPS. The company's revenue for the quarter was up 12.1% on a year-over-year basis. Analysts forecast that Amazon.com will post 8.00 earnings per share for the current fiscal year.

Insider Transactions at Amazon.com

In other Amazon.com news, SVP David Zapolsky sold 9,258 shares of the firm's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $259.77, for a total value of $2,404,950.66. Following the completion of the sale, the senior vice president directly owned 41,190 shares of the company's stock, valued at $10,699,926.30. This trade represents a 18.35% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian T. Olsavsky sold 6,172 shares of the business's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $260.31, for a total transaction of $1,606,633.32. Following the completion of the transaction, the chief financial officer owned 109,207 shares in the company, valued at $28,427,674.17. The trade was a 5.35% decrease in their ownership of the stock. 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. Insiders sold 71,589 shares of company stock worth $18,580,515 in the last quarter. 8.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Amazon.com

A number of hedge funds have recently added to or reduced their stakes in the business. Red Crane Wealth Management LLC grew its stake in shares of Amazon.com by 2.3% during the 1st quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant's stock worth $346,000 after purchasing an additional 38 shares during the period. Stegent Equity Advisors Inc. lifted its stake in shares of Amazon.com by 2.7% during the third quarter. Stegent Equity Advisors Inc. now owns 1,462 shares of the e-commerce giant's stock valued at $364,000 after buying an additional 39 shares during the period. Robinson Smith Wealth Advisors LLC increased its stake in Amazon.com by 0.7% in the first quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant's stock valued at $1,147,000 after purchasing an additional 40 shares during the last quarter. Sfam LLC grew its holdings in Amazon.com by 3.4% in the first quarter. Sfam LLC now owns 1,224 shares of the e-commerce giant's stock valued at $255,000 after purchasing an additional 40 shares during the period. Finally, Measured Risk Portfolios Inc. grew its position in Amazon.com by 3.4% during the first quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant's stock valued at $251,000 after acquiring an additional 40 shares during the period. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Amazon.com News Summary

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

• Positive Sentiment: AWS growth accelerated sharply. Amazon Web Services revenue increased 39% year over year to approximately $46 billion, its fastest growth in nearly five years. Management said demand remains strong, with AWS capacity largely booked and growth potentially exceeding 40% in 2027 and 2028. Amazon AWS revenue grows 39%, leading to wider margin
• Positive Sentiment: Analysts remain bullish on Amazon’s long-term opportunity. Mizuho raised its price target to $335, while Bank of America maintained a Buy rating with a $317 target. Cantor Fitzgerald and Citizens JMP retained positive ratings despite lowering their targets to $280 and $275, respectively. Amazon Price Target Trimmed to $317
• Neutral Sentiment: Amazon is expanding its AI and infrastructure ecosystem. CEO Andy Jassy said the company plans to offer Trainium chips to outside customers by late 2027, add additional open-source AI models to Bedrock, and launch initial Leo satellite-internet service this year. These initiatives could create new revenue streams but require substantial investment. Amazon Has Bigger Plans for AI Chips
• Negative Sentiment: Amazon missed quarterly expectations. Third-quarter EPS was $1.89 versus consensus of $1.97, while revenue of $201.94 billion was slightly below estimates. Earnings also declined from $1.95 a year earlier, despite 12.1% revenue growth. Amazon projects fourth quarter sales below estimates
• Negative Sentiment: Cash flow and spending are the main investor concerns. Amazon reported negative free cash flow of roughly $42.4 billion over the past 12 months, while capital expenditures remain projected near $220 billion for 2026. Rising debt and expectations for even higher AI spending in 2027 are raising questions about profitability and returns on investment. Amazon Just Burned $42 Billion in Cash Chasing AI Growth
• Negative Sentiment: Holiday-quarter guidance disappointed. Amazon’s forecast for fourth-quarter revenue came in largely below Wall Street expectations, suggesting pressure from cautious consumer spending and weaker near-term retail growth. The combination of a modest outlook and heavy AI investment drove the selloff and pulled broader technology futures lower.

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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