Amazon.com (NASDAQ:AMZN) Trading 2.5% Higher – Should You Buy?

Amazon.com, Inc. (NASDAQ:AMZN)’s share price shot up 2.5% on Friday . The stock traded as high as $233.90 and last traded at $232.69. 241,373,768 shares were traded during trading, an increase of 381% from the average daily volume of 50,228,629 shares. The stock had previously closed at $227.01.

More Amazon.com News

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

• Positive Sentiment: Amazon Web Services raised prices on certain AI GPU and capacity-block offerings, which suggests strong demand and improved pricing power for its cloud business. Article Title
• Positive Sentiment: Amazon said it will invest an additional $13 billion in India through 2030 to expand AI and cloud infrastructure, reinforcing long-term growth ambitions in a key market. Article Title
• Positive Sentiment: Prime Day appears to be generating strong demand, with reports pointing to record sales expectations and early momentum from AI-driven shopping activity. Article Title
• Positive Sentiment: Several analysts reiterated bullish views, including Wells Fargo and BMO Capital, signaling continued confidence in Amazon’s cloud, advertising, and AI-driven earnings power. Article Title
• Neutral Sentiment: Media coverage also highlighted Amazon as a stock that hedge funds and prominent investors continue to own heavily, but these are not immediate fundamental catalysts. Article Title
• Negative Sentiment: Some articles pointed to ongoing concerns about Amazon’s heavy capex, insider selling, and the stock breaking below key technical levels, which may be limiting gains. Article Title
• Negative Sentiment: Separately, EU regulators said Amazon’s cloud business may face stricter competition rules, adding a potential overhang for AWS. Article Title

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on AMZN. DA Davidson increased their price target on shares of Amazon.com from $175.00 to $250.00 and gave the stock a “neutral” rating in a research report on Thursday, April 30th. Barclays reaffirmed an “overweight” rating on shares of Amazon.com in a report on Tuesday, June 9th. Phillip Securities upgraded Amazon.com from a “moderate buy” rating to a “buy” rating and set a $280.00 price objective on the stock in a research note on Wednesday, May 13th. Jefferies Financial Group reissued a “buy” rating on shares of Amazon.com in a report on Thursday, June 18th. Finally, Susquehanna restated a “positive” rating and set a $325.00 target price (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. Fifty-seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $312.78.

Amazon.com Price Performance

The stock has a market capitalization of $2.50 trillion, a P/E ratio of 27.83, a PEG ratio of 1.74 and a beta of 1.44. The company’s 50 day simple moving average is $255.53 and its two-hundred day simple moving average is $234.13. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01.

Amazon.com (NASDAQ:AMZN) last posted its earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.63 by $1.15. The company had revenue of $181.52 billion during the quarter, compared to analysts’ expectations of $177.28 billion. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. Amazon.com’s quarterly revenue was up 16.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.59 earnings per share. As a group, equities analysts expect that Amazon.com, Inc. will post 7.71 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, SVP David Zapolsky sold 9,270 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was 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 directly owned 41,190 shares in the company, valued at approximately $11,060,750.70. This trade represents a 18.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of Amazon.com stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $263.40, for a total value of $4,074,007.80. Following the completion of the transaction, the chief executive officer directly owned 14,159 shares of the company’s stock, valued at $3,729,480.60. This represents a 52.21% 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. In the last 90 days, insiders have sold 195,774 shares of company stock worth $51,614,434. 8.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Amazon.com

A number of hedge funds have recently added to or reduced their stakes in AMZN. Compagnie Lombard Odier SCmA acquired a new stake in Amazon.com during the 3rd quarter worth approximately $451,642,000. Narwhal Capital Management grew its holdings in Amazon.com by 2.3% in the 4th quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant’s stock valued at $49,997,000 after buying an additional 4,854 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its position in Amazon.com by 21.0% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 24,653,228 shares of the e-commerce giant’s stock worth $5,690,463,000 after buying an additional 4,275,942 shares during the period. Weaver Capital Management LLC increased its position in Amazon.com by 13.6% during the 4th quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant’s stock worth $9,063,000 after buying an additional 4,713 shares during the period. Finally, Ethos Financial Group LLC lifted its holdings in shares of Amazon.com by 9.6% during the fourth quarter. Ethos Financial Group LLC now owns 36,485 shares of the e-commerce giant’s stock worth $8,421,000 after buying an additional 3,196 shares in the last quarter. Institutional investors own 72.20% of the company’s stock.

About Amazon.com

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.