Erste Group Bank Forecasts Stronger Earnings for Amazon.com

Key Points

• Erste Group Bank slightly raised its FY2027 EPS estimate for Amazon to $9.99 from $9.96, well above the current consensus estimate of $7.75.
• Wall Street sentiment remains broadly positive, with 57 analysts rating Amazon a Buy and only three Hold ratings; the stock’s consensus rating is Moderate Buy with an average price target of $312.76.
• Amazon recently beat quarterly expectations, reporting $2.78 EPS on $181.52 billion in revenue, while quarterly sales grew 16.6% year over year.

Amazon.com, Inc. (NASDAQ:AMZN - Free Report) - Analysts at Erste Group Bank raised their FY2027 earnings per share (EPS) estimates for shares of Amazon.com in a research note issued on Wednesday, July 15th. Erste Group Bank analyst S. Lingnau now expects that the e-commerce giant will post earnings per share of $9.99 for the year, up from their previous forecast of $9.96. The consensus estimate for Amazon.com's current full-year earnings is $7.75 per share.

A number of other research firms have also weighed in on AMZN. KeyCorp set a $335.00 price objective on shares of Amazon.com and gave the stock an "overweight" rating in a research report on Thursday. Needham & Company LLC upped their target price on Amazon.com from $265.00 to $300.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. TD Securities upgraded Amazon.com to a "buy" rating in a report on Monday, April 13th. Piper Sandler set a $330.00 price target on Amazon.com in a research note on Thursday, June 11th. Finally, Royal Bank Of Canada restated a "buy" rating on shares of Amazon.com in a report on Tuesday, June 16th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Amazon.com presently has a consensus rating of "Moderate Buy" and an average price target of $312.76.

Amazon.com Price Performance

Amazon.com stock opened at $249.89 on Friday. The firm has a 50-day moving average price of $251.33 and a 200-day moving average price of $235.85. The firm has a market capitalization of $2.69 trillion, a PE ratio of 29.89, a price-to-earnings-growth ratio of 1.90 and a beta of 1.46. The company has a current ratio of 1.18, a quick ratio of 1.01 and a debt-to-equity ratio of 0.27. Amazon.com has a 12-month low of $196.00 and a 12-month high of $278.56.

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, beating the consensus estimate of $1.63 by $1.15. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The company had revenue of $181.52 billion for the quarter, compared to analyst estimates of $177.28 billion. During the same quarter in the prior year, the firm posted $1.59 EPS. Amazon.com's quarterly revenue was up 16.6% compared to the same quarter last year.

Insider Transactions at Amazon.com

In other news, SVP David Zapolsky sold 9,270 shares of the company's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $268.53, for a total value of $2,489,273.10. Following the completion of the sale, the senior vice president 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $262.38, for a total transaction of $620,003.94. Following the transaction, the vice president owned 119,780 shares in the company, valued at approximately $31,427,876.40. This represents a 1.93% 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. Insiders sold a total of 144,274 shares of company stock valued at $38,716,204 over the last three months. 8.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Amazon.com

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Trust Asset Management LLC boosted its stake in Amazon.com by 3.3% in the 2nd quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant's stock worth $26,000 after purchasing an additional 3,414 shares in the last quarter. MilWealth Group LLC raised its stake in Amazon.com by 79.0% in the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant's stock worth $41,000 after acquiring an additional 79 shares during the last quarter. Lifetime Wealth Management P.C. purchased a new position in Amazon.com in the 4th quarter worth $45,000. Elkhorn Partners Limited Partnership lifted its position in Amazon.com by 900.0% during the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant's stock worth $46,000 after acquiring an additional 180 shares during the period. Finally, Fairway Wealth LLC lifted its position in Amazon.com by 95.6% during the 4th quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant's stock worth $51,000 after acquiring an additional 108 shares during the period. Hedge funds and other institutional investors own 72.20% of the company's stock.

Amazon.com News Summary

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

• Positive Sentiment: Wedbush reportedly named Amazon a preferred AI hyperscaler over Meta, citing its strategic position in AI and cloud computing. Amazon or Meta: Wedbush Chooses the Superior AI Hyperscaler Stock to Buy
• Positive Sentiment: KeyBanc and other firms turned bullish on Amazon’s AI spending, arguing that large capex is supporting future AWS growth rather than signaling excess. Amazon’s AI Arms Race: KeyBanc Says Massive Capex Is a Feature, Not a Bug
• Positive Sentiment: Analysts highlighted Amazon Web Services’ improving sales trend and raised price targets, reinforcing the view that cloud growth is reaccelerating. Analyst sets AMZN stock price target after higher AWS sales
• Positive Sentiment: Amazon’s in-house chip business was described by CEO Andy Jassy as a major growth engine, with more than $225 billion in customer commitments for Trainium chips. Andy Jassy Says Amazon's Chip Business Already Has $225 Billion in Commitments
• Positive Sentiment: Several reports pointed to Amazon’s valuation as attractive relative to its AI, cloud, and logistics growth opportunities, and multiple analysts reiterated buy ratings. KeyBanc Raises Amazon Stock’s Price Target Ahead of Earnings

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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