Amazon.com (NASDAQ:AMZN) Shares Up 4% – Time to Buy?

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price was up 4% on Friday . The company traded as high as $267.56 and last traded at $266.43. 47,972,899 shares were traded during trading, a decline of 1% from the average session volume of 48,629,012 shares. The stock had previously closed at $256.26.

Amazon.com News Summary

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

• Positive Sentiment: Amazon and Nvidia expanded their strategic partnership by roughly 2 million additional Nvidia GPUs for AWS data centers through 2028, bringing Amazon’s total planned commitment to about 3 million chips. The agreement signals strong anticipated demand for AI computing capacity and improves AWS revenue visibility. Amazon just tripled its order of Nvidia chips over surging demand
• Positive Sentiment: AWS revenue reportedly climbed 37% to $42.2 billion in the second quarter, while Amazon’s AI and custom-chip businesses each surpassed a $25 billion annualized revenue run rate. These figures reinforce the view that AI spending is beginning to create substantial cloud demand. Amazon AI investment gains momentum as AWS revenue surges
• Positive Sentiment: Evercore ISI raised its Amazon price target to $355 from $315. The firm cited improving retail economics and continued momentum in AWS, AI, and cloud services while retaining an Outperform rating. Why is Amazon stock surging today
• Positive Sentiment: Amazon announced power-purchase agreements covering 600 megawatts of carbon-free electricity, including 200 megawatts from four Swedish wind farms. The deals support data-center expansion and reduce long-term power-supply and sustainability risks. Amazon announces wind energy power agreements
• Positive Sentiment: Amazon-backed Zoox is launching robotaxi services in San Francisco, giving Amazon exposure to a potentially large autonomous-transportation market alongside Waymo and Tesla. Amazon-backed Zoox launches robotaxis

Wall Street Analyst Weigh In

A number of brokerages have recently commented on AMZN. Royal Bank Of Canada boosted their price objective on shares of Amazon.com from $320.00 to $330.00 and gave the stock an “outperform” rating in a research report on Friday, July 31st. Truist Financial increased their price objective on shares of Amazon.com from $320.00 to $350.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Scotiabank reissued an “outperform” rating and set a $325.00 price target (up from $275.00) on shares of Amazon.com in a research report on Thursday, April 30th. Bank of America increased their price target on Amazon.com from $310.00 to $320.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, Maxim Group boosted their price target on Amazon.com from $290.00 to $315.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. One investment 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’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $323.09.

Amazon.com Trading Up 4.0%

The company has a market cap of $2.87 trillion, a price-to-earnings ratio of 21.43, a PEG ratio of 1.73 and a beta of 1.45. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The business’s 50 day moving average price is $251.18 and its 200-day moving average price is $240.27.

Amazon.com (NASDAQ:AMZN) last announced its quarterly earnings results 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. The business had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. Amazon.com’s quarterly revenue was up 19.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.68 EPS. On average, equities analysts anticipate that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, SVP David Zapolsky sold 9,258 shares of the business’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $259.77, for a total value of $2,404,950.66. Following the completion of the sale, the senior vice president owned 41,190 shares of the company’s stock, valued at approximately $10,699,926.30. The trade was a 18.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed 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 company’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the completion of the transaction, the chief executive officer owned 2,235,766 shares in the company, valued at $579,085,751.66. This trade represents a 0.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 71,589 shares of company stock worth $18,580,205 over the last three months. 8.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Amazon.com

Several hedge funds and other institutional investors have recently bought and sold shares of AMZN. Trust Asset Management LLC lifted its position 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 valued at $26,000 after acquiring an additional 3,414 shares during the period. TOP Private Wealth LLC. bought a new position in shares of Amazon.com in the second quarter worth $29,000. Bard Associates Inc. acquired a new position in Amazon.com in the second quarter valued at about $32,000. Longfellow Investment Management Co. LLC acquired a new position in Amazon.com in the second quarter valued at about $33,000. Finally, MilWealth Group LLC lifted its position 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 purchasing an additional 79 shares during the period. Institutional investors and hedge funds 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.