FY2027 EPS Forecast for Amazon.com Increased by Analyst

Key Points

• Erste Group Bank raised Amazon’s FY2027 EPS forecast to $10.71 from $10.54, compared with the current full-year consensus estimate of $8.03.
• Analyst sentiment remains strongly positive: 56 analysts rate Amazon a Buy and three rate it Hold, resulting in a “Moderate Buy” consensus and an average price target of $322.53.
• Amazon recently exceeded quarterly expectations with $5.75 EPS and $200.61 billion in revenue, though investors remain focused on the high cost of its AI infrastructure spending and related free-cash-flow risks.

Amazon.com, Inc. (NASDAQ:AMZN - Free Report) - Analysts at Erste Group Bank lifted their FY2027 earnings estimates for shares of Amazon.com in a note issued to investors on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now anticipates that the e-commerce giant will post earnings per share of $10.71 for the year, up from their previous forecast of $10.54. The consensus estimate for Amazon.com's current full-year earnings is $8.03 per share.

A number of other analysts also recently issued reports on the company. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $375.00 target price (up from $335.00) on shares of Amazon.com in a research report on Friday, July 31st. Evercore set a $355.00 price objective on Amazon.com and gave the stock an "outperform" rating in a research note on Friday, August 28th. Sanford C. Bernstein reissued an "outperform" rating and issued a $320.00 price objective (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. DA Davidson restated a "neutral" rating and set a $250.00 target price on shares of Amazon.com in a report on Friday, July 31st. Finally, Telsey Advisory Group set a $335.00 price target on shares of Amazon.com and gave the company an "outperform" rating in a research note on Friday, July 31st. Fifty-six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $322.53.

Amazon.com Trading Down 1.1%

Amazon.com stock opened at $259.53 on Tuesday. The firm has a 50-day moving average of $258.34 and a 200-day moving average of $250.53. Amazon.com has a one year low of $196.00 and a one year high of $287.20. 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 has a market cap of $2.80 trillion, a price-to-earnings ratio of 20.88, a P/E/G ratio of 2.03 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, topping 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 business had revenue of $200.61 billion during the quarter, compared to analysts' expectations of $197.03 billion. During the same quarter in the prior year, the company posted $1.68 earnings per share. The firm's revenue was up 19.6% on a year-over-year basis.

Hedge Funds Weigh In On Amazon.com

Several large investors have recently modified their holdings of the stock. State Street Corp lifted its stake in Amazon.com by 5.5% during the 2nd quarter. State Street Corp now owns 411,848,346 shares of the e-commerce giant's stock valued at $95,504,904,000 after acquiring an additional 21,398,025 shares in the last quarter. Auto Owners Insurance Co grew its stake in shares of Amazon.com by 27,376.7% in the 4th quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant's stock worth $2,272,397,000 after acquiring an additional 98,090,585 shares in the last quarter. Bank of America Corp DE bought a new stake in shares of Amazon.com in the 2nd quarter worth $22,218,775,000. Bank of New York Mellon Corp purchased a new stake in shares of Amazon.com in the second quarter valued at about $16,341,405,000. Finally, Amundi raised its holdings in shares of Amazon.com by 3.9% in the second quarter. Amundi now owns 63,822,242 shares of the e-commerce giant's stock valued at $15,211,393,000 after purchasing an additional 2,421,739 shares during the last quarter. 72.20% of the stock is owned by institutional investors.

Insider Buying and Selling at Amazon.com

In other Amazon.com news, CEO Matthew Garman sold 14,541 shares of the firm's stock in a transaction on 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 completion of the sale, the chief executive officer owned 17,794 shares of the company's stock, valued at $4,609,713.64. This trade represents a 44.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 6,362 shares of Amazon.com stock in a transaction on Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $1,647,821.62. Following the transaction, the chief executive officer directly owned 476,681 shares of the company's stock, valued at approximately $123,465,145.81. This trade represents a 1.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 three months. 8.90% of the stock is owned by insiders.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Amazon is reportedly negotiating to acquire AI startup Decart for approximately $7 billion. Decart develops software that helps customers use different AI chips, potentially strengthening AWS, Amazon’s custom-chip strategy and its competitive position in AI infrastructure. The deal remains unconfirmed and could still collapse. Amazon in Talks to Buy AI Startup Decart for Around $7 Billion
• Positive Sentiment: Analysts and market commentators continue to highlight accelerating AWS growth, expanding advertising revenue and a large cloud backlog as supports for Amazon’s long-term earnings outlook. Cantor Fitzgerald maintained an overweight rating despite reducing its price target to $310 from $320, leaving substantial implied upside based on the supplied reference price. Amazon.com Price Target Lowered
• Positive Sentiment: Amazon’s partnership with Generac underscores continued demand for data-center power equipment, indirectly supporting the broader infrastructure expansion that is driving AWS investment. The announcement benefits Generac more directly than Amazon. Generac Entered a Massive Deal With Amazon
• Neutral Sentiment: Amazon is also considering bundling its Leo satellite-internet service with Prime, a potentially significant new growth avenue but one that remains speculative and could require sizable investment. Amazon Could Bundle Satellite Internet With Prime
• Negative Sentiment: Investors are focused on the enormous cost of the AI buildout: Amazon, Microsoft, Meta and Alphabet are expected to spend roughly $750 billion on capital expenditures this year. The spending may boost future AWS growth, but it raises concerns about free cash flow, returns on invested capital and valuation.
• Negative Sentiment: Technology stocks broadly declined, creating additional pressure on AMZN. The Decart acquisition reports also introduce execution and capital-allocation risk, while reports about Amazon’s use of customer purchase data to infer sensitive personal traits could renew privacy and regulatory concerns. Sector Update: Tech Stocks Fall Monday

About Amazon.com

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon's major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.

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