Amazon.com (NASDAQ:AMZN) Stock Price Up 1.6% – Still a Buy?

Amazon.com, Inc. (NASDAQ:AMZN) shares shot up 1.6% on Tuesday. The stock traded as high as $254.68 and last traded at $253.10. 33,769,195 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 45,948,934 shares. The stock had previously closed at $249.09.

Amazon.com News Roundup

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 CEO Andy Jassy has said cloud capacity is booked through this year and much of next year. Amazon also has a reported $496 billion AWS backlog, supporting the case for continued expansion. Amazon to report Q3 earnings after the bell with AI spend under scrutiny
• Positive Sentiment: Analyst optimism provides support: Several analysts remain constructive on Amazon, arguing that AWS margins could improve and that AI-related demand may create a long-term growth opportunity. Recent price targets are well above current trading levels, although the earnings report is expected to determine whether those views hold. UBS Thinks the Street Is Too Low on AWS
• Neutral Sentiment: Other strategic initiatives: The FCC approved Amazon Leo’s approximately $11.5 billion acquisition of Globalstar, expanding Amazon’s satellite-connectivity ambitions. The deal could broaden Amazon’s long-term growth opportunities but also adds capital and execution demands. US agency approves Amazon Leo’s acquisition of Globalstar
• Negative Sentiment: AI spending is the immediate concern: Amazon’s planned capital expenditures could reach about $220 billion in 2026. Investors want evidence that this spending will produce sufficient revenue, margins and free cash flow; Alphabet’s sharp post-earnings selloff intensified scrutiny of all hyperscalers.
• Negative Sentiment: Competitive and strategic risks are rising: Microsoft’s strong Azure and Copilot momentum raises the bar for AWS, while investor Gene Munster warned that AI shopping agents could challenge Amazon’s online retail advantage. Reports of widespread insider selling may also weigh on sentiment, though such transactions do not necessarily indicate a change in business fundamentals.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on AMZN shares. Phillip Securities cut shares of Amazon.com from a “strong-buy” rating to a “moderate buy” rating in a report on Monday, August 3rd. Royal Bank Of Canada boosted their price objective on Amazon.com from $320.00 to $330.00 and gave the stock an “outperform” rating in a research note on Friday, July 31st. Citigroup restated a “market outperform” rating on shares of Amazon.com in a report on Friday, August 14th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $325.00 target price (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Finally, Pivotal Research reissued a “buy” rating and set a $333.00 target price (up from $320.00) on shares of Amazon.com in a research note on Friday, July 31st. Fifty-seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $325.12.

Amazon.com Trading Down 3.7%

The stock has a market capitalization of $2.64 trillion, a P/E ratio of 19.73, a P/E/G ratio of 2.04 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 fifty day simple moving average is $255.11 and its two-hundred day simple moving average is $243.14.

Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share 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 firm had revenue of $200.61 billion during the quarter, compared to analysts’ expectations of $197.03 billion. During the same quarter in the previous year, the company posted $1.68 EPS. Amazon.com’s revenue was up 19.6% on a year-over-year basis. As a group, analysts forecast that Amazon.com, Inc. will post 7.55 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Brian Olsavsky sold 6,172 shares of the firm’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $260.31, for a total value of $1,606,633.32. Following the completion of the transaction, the chief financial officer owned 109,207 shares of the company’s stock, valued at approximately $28,427,674.17. This trade represents a 5.35% 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 hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Jassy sold 20,000 shares of the firm’s stock in a transaction that occurred 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 completion of the transaction, the chief executive officer owned 2,235,766 shares of the company’s stock, valued at approximately $579,085,751.66. This represents a 0.89% 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 71,589 shares of company stock valued at $18,580,515 in the last quarter. Company insiders own 8.90% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in AMZN. State Street Corp increased its position in Amazon.com by 5.5% in the second quarter. State Street Corp now owns 411,848,346 shares of the e-commerce giant’s stock worth $95,504,904,000 after buying an additional 21,398,025 shares during the last quarter. Bank of America Corp DE bought a new stake in shares of Amazon.com during the 2nd quarter valued at about $22,218,775,000. Bank of New York Mellon Corp purchased a new position in Amazon.com in the 2nd quarter worth approximately $16,341,405,000. Amundi lifted its stake in Amazon.com by 3.9% during the second quarter. Amundi now owns 63,822,242 shares of the e-commerce giant’s stock worth $15,211,393,000 after purchasing an additional 2,421,739 shares during the last quarter. Finally, Legal & General Group Plc bought a new position in Amazon.com during the second quarter valued at approximately $12,831,376,000. Institutional investors own 72.20% of the company’s stock.

About Amazon.com

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.