Amazon.com (NASDAQ:AMZN) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS

Amazon.com (NASDAQ:AMZN) issued its quarterly earnings results on Thursday. The e-commerce giant reported $1.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.97 by ($0.08), FiscalAI reports. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%. The business had revenue of $201.94 billion during the quarter, compared to the consensus estimate of $202.22 billion.

Amazon.com Stock Performance

Amazon.com stock traded down $10.81 during midday trading on Thursday, reaching $243.79. 65,185,562 shares of the company traded hands, compared to its average volume of 45,900,746. Amazon.com has a 12 month low of $196.00 and a 12 month 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 business has a 50 day moving average of $255.11 and a two-hundred day moving average of $243.14. The firm has a market capitalization of $2.63 trillion, a price-to-earnings ratio of 19.61, a price-to-earnings-growth ratio of 2.04 and a beta of 1.45.

Amazon.com News Summary

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

• Positive Sentiment: AWS demand remains strong. Analysts expect AWS revenue growth of roughly 38%, while Amazon has said much of its cloud capacity is booked through this year and into 2027. A reported $496 billion backlog and large customer commitments, including Anthropic’s minimum-spending agreement, support the long-term cloud outlook. Amazon to report Q3 earnings after the bell
• Positive Sentiment: AI infrastructure demand is creating strategic opportunities. Amazon’s long-term power agreements, including support for more than $3 billion of investment at Maryland’s Calvert Cliffs nuclear plant, could help secure electricity for future data centers. The company is also expanding satellite connectivity following regulatory approval for its Globalstar transaction. Amazon wins FCC approval for Globalstar deal
• Neutral Sentiment: Tonight’s earnings are the key catalyst. Investors will focus on AWS growth, operating margins, capital expenditures, free cash flow, and management’s outlook for AI monetization. Options markets imply an unusually large post-earnings move, reflecting elevated uncertainty. Expected Amazon earnings move
• Negative Sentiment: AI spending and cash flow are the central concern. Amazon reportedly invested approximately $53 billion in AI this year, while free cash flow turned negative. Its broader 2026 spending plan could approach $220 billion, increasing pressure on management to demonstrate near-term returns from data-center and AI investment. Amazon AI spending and Q3 earnings preview
• Negative Sentiment: Broader technology-sector weakness is raising the bar. Alphabet’s sharp post-earnings selloff, linked to heavy AI spending and renewed cash-flow concerns, has made investors more sensitive to AWS margins and Amazon’s spending guidance.
• Negative Sentiment: Amazon’s retail moat may face new competition. Investor Gene Munster warned that AI shopping agents could become the starting point for purchases, potentially weakening Amazon’s control over product discovery and customer traffic. Gene Munster warns AI bots threaten Amazon shopping

Insiders Place Their Bets

In related news, CEO Andrew R. Jassy sold 20,000 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the completion of the sale, the chief executive officer owned 2,235,766 shares in the company, valued at approximately $579,085,751.66. This represents a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,343 shares of the business’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $606,860.43. Following the sale, the vice president owned 119,780 shares of the company’s stock, valued at approximately $31,024,217.80. This represents a 1.92% 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 have sold a total of 71,589 shares of company stock worth $18,580,515 in the last 90 days. Insiders own 8.90% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages recently commented on AMZN. DA Davidson reissued a “neutral” rating and set a $250.00 price objective on shares of Amazon.com in a research report on Friday, July 31st. Cantor Fitzgerald dropped their target price on shares of Amazon.com from $320.00 to $310.00 and set an “overweight” rating on the stock in a research note on Monday, October 12th. Telsey Advisory Group set a $335.00 price target on shares of Amazon.com and gave the company an “outperform” rating in a report on Friday, July 31st. TD Cowen reissued a “buy” rating and set a $350.00 price target on shares of Amazon.com in a research report on Monday, October 5th. Finally, Citigroup restated a “market outperform” rating on shares of Amazon.com in a report on Friday, August 14th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Amazon.com has an average rating of “Moderate Buy” and a consensus target price of $325.12.

Amazon.com Company Profile

Amazon.com, Inc is a global technology and e-commerce company founded by Jeff Bezos in 1994. Originally launched as an online bookstore, the company has expanded into a broad digital marketplace offering consumer products across numerous categories, including electronics, household goods, apparel, groceries and other merchandise. Amazon also sells products under its own brands and provides logistics, fulfillment and delivery services that support its retail operations and third-party sellers.

The company’s principal businesses include online and physical retail, Amazon Web Services (AWS), digital advertising, subscription services and consumer technology.