Amazon.com's (AMZN) "Outperform" Rating Reaffirmed at Telsey Advisory Group

Key Points

• Telsey Advisory Group reaffirmed its “Outperform” rating on Amazon and set a $335 price target, implying approximately 40% upside from the cited share price.
• Analyst sentiment remains broadly positive: Amazon has a consensus “Moderate Buy” rating and an average price target of $321.30, with most tracked analysts issuing Buy ratings.
• Amazon’s latest quarter was mixed: revenue rose 12.1% year over year to $201.94 billion, but both revenue and EPS of $1.89 fell short of estimates. Shares declined 1.9% to $239.04 amid concerns about heavy AI-related capital spending and a weaker-than-expected fourth-quarter outlook.

Amazon.com (NASDAQ:AMZN - Get Free Report)'s stock had its "outperform" rating reissued by research analysts at Telsey Advisory Group in a research note issued on Friday, Benzinga reports. They presently have a $335.00 price target on the e-commerce giant's stock. Telsey Advisory Group's price target would suggest a potential upside of 40.14% from the company's current price.

Other research analysts have also issued research reports about the company. Pivotal Research reaffirmed a "buy" rating and set a $333.00 price target (up from $320.00) on shares of Amazon.com in a research report on Friday, July 31st. Barclays restated an "overweight" rating and set a $365.00 target price (up from $330.00) on shares of Amazon.com in a report on Friday, July 31st. HSBC reaffirmed a "buy" rating and set a $310.00 price target on shares of Amazon.com in a research report on Friday, July 31st. Wolfe Research reiterated an "outperform" rating and issued a $315.00 price target on shares of Amazon.com in a research note on Friday, July 31st. Finally, Phillip Securities cut shares of Amazon.com from a "strong-buy" rating to a "moderate buy" rating in a research note on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $321.30.

Amazon.com Stock Down 1.9%

Shares of Amazon.com stock traded down $4.75 during trading hours on Friday, reaching $239.04. 78,028,799 shares of the company's stock were exchanged, compared to its average volume of 46,229,844. The company has a 50 day moving average of $254.67 and a two-hundred day moving average of $243.12. Amazon.com has a fifty-two week low of $196.00 and a fifty-two week high of $287.20. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The stock has a market cap of $2.58 trillion, a P/E ratio of 19.24, a P/E/G ratio of 1.98 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its quarterly earnings data 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 net margin of 17.44% and a return on equity of 18.00%. The company had revenue of $201.94 billion during the quarter, compared to the consensus estimate of $202.22 billion. During the same quarter in the previous year, the business earned $1.95 EPS. Amazon.com's revenue was up 12.1% on a year-over-year basis. On average, sell-side analysts forecast that Amazon.com will post 8.00 EPS for the current fiscal year.

Insider Transactions at Amazon.com

In other Amazon.com news, CEO Andrew Jassy sold 20,000 shares of the company's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $5,180,200.00. Following the transaction, the chief executive officer directly owned 2,235,766 shares in the company, 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 document filed with the Securities & Exchange Commission, which is available at this hyperlink. 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 dated 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 completion of the transaction, the senior vice president directly owned 41,190 shares in the company, valued at $10,699,926.30. The trade was a 18.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 71,589 shares of company stock valued at $18,580,515. Corporate insiders own 8.90% of the company's stock.

Hedge Funds Weigh In On Amazon.com

Several institutional investors and hedge funds have recently made changes to their positions in the company. Trust Asset Management LLC lifted its holdings in Amazon.com by 3.3% during the 2nd quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant's stock worth $26,000 after buying an additional 3,414 shares during the period. TOP Private Wealth LLC. acquired a new stake in shares of Amazon.com in the second quarter valued at about $29,000. Bard Associates Inc. acquired a new stake in shares of Amazon.com in the second quarter valued at about $32,000. Longfellow Investment Management Co. LLC bought a new position in shares of Amazon.com during the second quarter worth about $33,000. Finally, Atomic Invest LLC raised its position in shares of Amazon.com by 41.2% during the second quarter. Atomic Invest LLC now owns 168 shares of the e-commerce giant's stock worth $40,000 after acquiring an additional 49 shares during the last quarter. Institutional investors and hedge funds own 72.20% of the company's stock.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: AWS revenue grew 39% year over year to approximately $46 billion, its fastest growth in nearly five years. Management expects AWS growth to exceed 40% in both 2027 and 2028, supported by AI demand and a substantial backlog. Amazon Q3 Revenues Miss Estimates, AWS Growth Hits Near 5-Year High
• Positive Sentiment: Analysts remain constructive despite trimming some targets. Rosenblatt reaffirmed a Buy rating with a $360 target, while Wells Fargo, Morgan Stanley, RBC, Canaccord, Monness and others maintained Overweight or Buy ratings. Mizuho raised its target to $335. Amazon stock falls: why analysts are saying it’s a buying opportunity
• Positive Sentiment: Amazon plans to sell its internally developed Trainium AI chips to outside customers by late 2027, potentially creating a new revenue stream and reducing dependence on competing chip suppliers. Amazon Pharmacy usage also rose more than 60% year over year, highlighting growth opportunities beyond retail and AWS. Amazon Has Bigger Plans for AI Chips
• Neutral Sentiment: Amazon reported $201.94 billion in third-quarter revenue and $1.89 in EPS, with revenue up 12.1% year over year. However, both figures fell short of consensus expectations, making the quarter a mixed result despite strong cloud performance. Amazon third-quarter earnings report
• Negative Sentiment: Investors are concerned that roughly $220 billion of planned 2026 capital spending—primarily tied to AI and data-center capacity—is overwhelming near-term returns. Amazon posted a $42.4 billion trailing-12-month free-cash-flow loss, while long-term debt has risen substantially, increasing financing and execution risks. Amazon’s Record Margins Couldn’t Stop the Sell-Off
• Negative Sentiment: Amazon’s fourth-quarter revenue outlook was largely below Wall Street estimates, raising concerns about holiday-season retail demand and the ability of AWS growth to offset softer commerce trends. The broader technology sell-off has amplified these worries about AI spending and future profitability. Amazon projects fourth-quarter sales below estimates

Amazon.com Company Profile

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.

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.