Erste Group Bank Lifts Earnings Estimates for Amazon.com

Key Points

• Erste Group Bank raised Amazon’s FY2027 EPS estimate to $10.54 from $10.50, well above the current consensus estimate of $8.01.
• Amazon’s latest quarterly results significantly exceeded expectations, with EPS of $5.75 versus the $1.82 consensus and revenue of $200.61 billion, up 19.6% year over year.
• Analyst sentiment remains favorable: 56 analysts rate Amazon a Buy and three rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $321.19.

Amazon.com, Inc. (NASDAQ:AMZN - Free Report) - Equities researchers at Erste Group Bank raised their FY2027 earnings per share (EPS) estimates for Amazon.com in a note issued to investors on Friday, September 18th. Erste Group Bank analyst S. Lingnau now anticipates that the e-commerce giant will earn $10.54 per share for the year, up from their previous estimate of $10.50. The consensus estimate for Amazon.com's current full-year earnings is $8.01 per share.

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

Several other research analysts also recently weighed in on the stock. Truist Financial upped their price objective on shares of Amazon.com from $320.00 to $350.00 and gave the stock a "buy" rating in a report on Friday, July 31st. HSBC reissued a "buy" rating and set a $310.00 price objective on shares of Amazon.com in a report on Friday, July 31st. Weiss Ratings restated a "buy (b)" rating on shares of Amazon.com in a report on Monday, August 3rd. Morgan Stanley reaffirmed an "overweight" rating and set a $335.00 target price (up from $330.00) on shares of Amazon.com in a research report on Friday, July 31st. Finally, Oppenheimer restated an "outperform" rating on shares of Amazon.com in a research note on Friday, July 31st. Fifty-six investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $321.19.

Amazon.com Price Performance

Shares of AMZN opened at $253.71 on Monday. The business's fifty day moving average is $256.09 and its 200 day moving average is $245.86. Amazon.com has a 12-month low of $196.00 and a 12-month high of $287.20. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. The stock has a market cap of $2.74 trillion, a P/E ratio of 20.41, a P/E/G ratio of 1.97 and a beta of 1.44.

Institutional Investors Weigh In On Amazon.com

Several large investors have recently added to or reduced their stakes in AMZN. Red Crane Wealth Management LLC increased its holdings in shares of Amazon.com by 2.3% during the first quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant's stock valued at $346,000 after purchasing an additional 38 shares during the period. Robinson Smith Wealth Advisors LLC raised its holdings in Amazon.com by 0.7% during the first quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant's stock worth $1,147,000 after purchasing an additional 40 shares in the last quarter. Sfam LLC raised its stake in shares of Amazon.com by 3.4% in the 1st quarter. Sfam LLC now owns 1,224 shares of the e-commerce giant's stock worth $255,000 after buying an additional 40 shares in the last quarter. Measured Risk Portfolios Inc. raised its position in Amazon.com by 3.4% in the first quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant's stock worth $251,000 after acquiring an additional 40 shares in the last quarter. Finally, CoreFirst Bank & Trust lifted its stake in Amazon.com by 1.1% during the first quarter. CoreFirst Bank & Trust now owns 3,620 shares of the e-commerce giant's stock valued at $754,000 after purchasing an additional 40 shares during the last quarter. Hedge funds and other institutional investors own 72.20% of the company's stock.

Insider Activity

In related news, SVP David Zapolsky sold 9,258 shares of the company's stock in a transaction that occurred 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 transaction, the senior vice president owned 41,190 shares in the company, valued at approximately $10,699,926.30. This represents a 18.35% decrease in their ownership of the stock. The transaction 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, CEO Andrew R. Jassy sold 20,000 shares of the 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 of the company's stock, valued at approximately $579,085,751.66. This trade represents a 0.89% 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 ninety days, insiders sold 71,589 shares of company stock worth $18,568,785. 8.90% of the stock is owned by insiders.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Amazon agreed to purchase up to $8 billion of backup generators from Generac, including approximately $2.4 billion of deliveries in 2027–2028. The deal should help Amazon bring AWS data centers online despite grid-connection delays and power shortages, while Amazon receives warrants to purchase Generac shares. Generac Plugs into Amazon for an $8B AI-Powered Deal
• Positive Sentiment: Analysts and investors continue to point to accelerating AWS demand, with reports citing a $169 billion annualized revenue run rate and a large cloud backlog. That supports expectations that AI-related infrastructure spending can translate into future sales, despite near-term cash-flow pressure. Amazon’s Andy Jassy Just Made a Startling Prediction
• Positive Sentiment: Project Mercury aims to expand Amazon’s same-day delivery network to more than 1,000 hubs by 2031. Bank of America called the initiative strategically important as Amazon attempts to narrow Walmart’s proximity and convenience advantage. Amazon’s secret weapon against Walmart could be a massive blitz in same-day delivery
• Positive Sentiment: AWS made its AI-powered hiring product, Amazon Connect Talent, generally available, expanding Amazon’s enterprise AI offerings beyond cloud infrastructure. Amazon has also received favorable attention from UBS analysts among top technology stock picks.
• Neutral Sentiment: Amazon is promoting industry and government cooperation on AI safety standards, emphasizing testing before release without calling for a broader slowdown in development. The stance may improve trust but is unlikely to materially change near-term results. Amazon Urges Industry and Government Partnership on AI Safeguards
• Negative Sentiment: Amazon faces European Commission scrutiny over marketplace rules that may restrict sellers from offering lower prices elsewhere, creating potential regulatory and compliance costs.
• Negative Sentiment: Investors remain concerned that roughly $220 billion of planned 2026 capital expenditures could keep free cash flow negative. Higher wages, delivery costs and possible electricity-grid charges for data centers add to the spending burden.
• Negative Sentiment: U.S. senators have urged the FTC to investigate Amazon’s AI shopping tools over alleged suppression of U.S.-made products and misleading “Made in USA” labels. The company also continues to face reputational and legal attention related to its Prime settlement.

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company that operates online marketplaces and provides a broad range of consumer products and services. Its retail business sells merchandise directly to customers and enables third-party sellers to offer products through Amazon's websites and applications. The company also operates physical stores and provides services such as digital content, subscriptions, and consumer devices, including Kindle and Echo products.

Amazon Web Services (AWS) provides cloud computing, storage, database, analytics, artificial intelligence, machine learning, and other technology services to businesses, governments, and organizations.

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