Erste Group Bank Boosts Earnings Estimates for Amazon.com

Key Points

• Erste Group Bank raised Amazon’s FY2027 EPS estimate to $10.50 from $10.36, well above the current consensus estimate of $8.05.
• Amazon’s latest quarterly results significantly exceeded expectations, with EPS of $5.75 versus $1.82 anticipated and revenue of $200.61 billion, up 19.6% year over year.
• Analyst sentiment remains bullish: Amazon has a consensus “Moderate Buy” rating and an average price target of $323.09, while several firms recently increased their targets.

Amazon.com, Inc. (NASDAQ:AMZN - Free Report) - Investment analysts at Erste Group Bank raised their FY2027 earnings per share estimates for shares of Amazon.com in a research note issued to investors on Thursday, August 27th. Erste Group Bank analyst S. Lingnau now forecasts that the e-commerce giant will post earnings of $10.50 per share for the year, up from their previous forecast of $10.36. The consensus estimate for Amazon.com's current full-year earnings is $8.05 per share.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating the consensus estimate of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The firm had revenue of $200.61 billion during the quarter, compared to the consensus estimate of $197.03 billion. During the same period last year, the firm posted $1.68 EPS. The firm's revenue for the quarter was up 19.6% on a year-over-year basis.

Other research analysts also recently issued reports about the company. Morgan Stanley reaffirmed an "overweight" rating and issued a $335.00 target price (up from $330.00) on shares of Amazon.com in a research note on Friday, July 31st. JPMorgan Chase & Co. boosted their price target on Amazon.com from $330.00 to $365.00 and gave the stock an "overweight" rating in a report on Friday, July 31st. Evercore set a $355.00 price objective on Amazon.com and gave the company an "outperform" rating in a research report on Friday. Raymond James Financial reaffirmed an "outperform" rating and set a $390.00 price objective (up from $280.00) on shares of Amazon.com in a research note on Friday, July 31st. Finally, Royal Bank Of Canada lifted their price objective on Amazon.com from $320.00 to $330.00 and gave the stock an "outperform" rating in a research report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $323.09.

Amazon.com Price Performance

AMZN stock opened at $266.43 on Monday. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. The company's 50 day simple moving average is $251.62 and its 200-day simple moving average is $240.67. Amazon.com has a 12 month low of $196.00 and a 12 month high of $287.20. The firm has a market capitalization of $2.87 trillion, a PE ratio of 21.43, a P/E/G ratio of 1.77 and a beta of 1.45.

Hedge Funds Weigh In On Amazon.com

Hedge funds have recently made changes to their positions in the stock. Trust Asset Management LLC grew its holdings in shares of 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 purchasing an additional 3,414 shares during the period. TOP Private Wealth LLC. purchased a new position in Amazon.com in the second quarter valued at approximately $29,000. Bard Associates Inc. purchased a new position in Amazon.com in the second quarter valued at approximately $32,000. Longfellow Investment Management Co. LLC acquired a new position in Amazon.com during the second quarter valued at approximately $33,000. Finally, MilWealth Group LLC grew its stake in Amazon.com by 79.0% during the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant's stock worth $41,000 after buying an additional 79 shares during the period. Institutional investors and hedge funds own 72.20% of the company's stock.

Insiders Place Their Bets

In related news, CEO Matthew S. Garman sold 14,541 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.06, for a total transaction of $3,766,991.46. Following the transaction, the chief executive officer directly owned 17,794 shares in the company, valued at approximately $4,609,713.64. This represents a 44.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed 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 firm's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $260.31, for a total value of $1,606,633.32. Following the completion of the sale, the chief financial officer directly owned 109,207 shares in the company, valued at approximately $28,427,674.17. The trade was a 5.35% 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 have sold 70,589 shares of company stock valued at $18,314,015. 8.90% of the stock is currently owned by company insiders.

Amazon.com News Roundup

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

• Positive Sentiment: Evercore raises target on agentic AI potential. Evercore ISI lifted its AMZN price target to $355 from $315.16 and maintained an Outperform rating. The firm believes agentic AI could improve retail growth and strengthen trends across Amazon Web Services (AWS), advertising and e-commerce. Why is Amazon stock surging 4% today
• Positive Sentiment: Expanded Nvidia partnership reinforces AI demand. Amazon plans to add 2 million Nvidia GPUs to its data centers in 2027–2028, bringing its announced commitment to roughly 3 million chips. The spending signals strong expected demand for AWS AI capacity and helped distinguish Amazon positively within the AI infrastructure sector. Amazon just tripled its order of Nvidia chips over surging demand
• Positive Sentiment: AWS and AI economics remain major growth catalysts. Reports cited approximately 37% AWS revenue growth to $42.2 billion in the second quarter, while Amazon’s AI and chip businesses each reached annualized revenue run rates above $25 billion. Analysts also highlighted solid retail profitability and long-term cloud adoption. Amazon Stock: AI Investment Gains Momentum as AWS Revenue Surges
• Positive Sentiment: New distribution and energy initiatives support the platform. Amazon plans to expand Prime Air drone delivery to nearly 500 U.S. cities by year-end, while new power-purchase agreements add 600 megawatts of carbon-free electricity and support data-center expansion. Amazon is about to six times its drone delivery footprint
• Neutral Sentiment: Amazon-backed Zoox is launching robotaxi service in San Francisco, creating a potential long-term growth option but adding an unproven business with significant execution requirements. Amazon-backed Zoox launches robotaxis in San Francisco
• Negative Sentiment: AI spending is raising return-on-investment concerns. The enlarged GPU commitment adds to an already substantial capital budget, prompting investors to question whether AWS demand and AI monetization will justify the cost. Amazon’s post-earnings gains have also partially faded, and billionaire Bill Ackman reportedly shifted from Amazon to Microsoft.
• Negative Sentiment: California litigation over alleged price-fixing remains an overhang, although a judge indicated the state’s request to block Amazon’s practices would likely be denied. Judge likely to deny California’s bid to stop Amazon’s alleged price fixing

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.

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.

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