Amazon.com (NASDAQ:AMZN) Stock Price Up 1.4% – Should You Buy?

Amazon.com, Inc. (NASDAQ:AMZN) shares shot up 1.4% during mid-day trading on Wednesday. The stock traded as high as $260.14 and last traded at $259.92. 34,693,287 shares traded hands during mid-day trading, a decline of 26% from the average session volume of 46,696,676 shares. The stock had previously closed at $256.29.

Key Amazon.com News

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

• Positive Sentiment: Analysts see AWS and Amazon’s AI-agent initiatives driving stronger growth. AWS sales reportedly increased 37% to $42.2 billion in the second quarter, while Amazon’s AI business surpassed a $25 billion annualized revenue run rate. Analysts also argue that “agentic commerce” could expand Amazon’s ecosystem rather than threaten it. Amazon AI Boom
• Positive Sentiment: Investor commentary continues to describe AMZN as an attractive long-term AI investment, supported by its relatively low valuation, expanding AI services and potential for widening margins. Amazon and Alphabet are cited as major beneficiaries of the multiyear AI infrastructure buildout. Amazon AI Services Revenue Expansion
• Positive Sentiment: Prime Big Deal Days provide a near-term retail and advertising catalyst, while the event’s performance will offer investors an early read on holiday-season demand. Amazon also secured a six-year global agreement to stream the Emmy Awards beginning in 2027, broadening Prime Video’s audience and advertising reach. Amazon Prime Video Emmys Deal
• Neutral Sentiment: Amazon is reportedly considering an approximately $8 billion Nvidia-chip financing structure that would move chips into a special-purpose vehicle and lease them back. The arrangement could improve capital flexibility, but it also underscores the scale of Amazon’s AI investment requirements. Amazon Nvidia Chip Financing
• Negative Sentiment: Prime Big Deal Days are occurring as consumer confidence has weakened to its lowest level since 2014, creating concern that discounting could pressure retail margins or reveal softer discretionary demand. Prime Big Deal Days Consumer Demand
• Negative Sentiment: Investors remain concerned that soaring AI capital expenditures could weigh on free cash flow before new data-center capacity generates sufficient revenue. Power constraints, infrastructure delays and uncertain returns could increase financial pressure.
• Negative Sentiment: CEO Douglas Herrington sold 1,000 shares under a pre-arranged Rule 10b5-1 plan. The transaction represented only 0.21% of his holdings, limiting its significance, but it may create modest headline pressure. SEC Insider Filing

Analysts Set New Price Targets

Several research firms recently issued reports on AMZN. Mizuho set a $330.00 price objective on Amazon.com and gave the company an “outperform” rating in a research report on Friday, July 31st. KeyCorp lifted their price objective on Amazon.com from $335.00 to $350.00 and gave the stock an “overweight” rating in a report on Friday, July 31st. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price target on shares of Amazon.com in a research note on Friday, July 31st. Evercore set a $355.00 target price on shares of Amazon.com and gave the stock an “outperform” rating in a research report on Friday, August 28th. Finally, Tigress Financial reaffirmed a “buy” rating and issued a $385.00 price objective (up from $315.00) on shares of Amazon.com in a report on Tuesday. Fifty-six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $322.86.

Amazon.com Trading Up 1.4%

The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. The stock’s 50 day moving average is $257.97 and its 200-day moving average is $249.09. The company has a market cap of $2.80 trillion, a PE ratio of 20.91, a P/E/G ratio of 1.94 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN) last released its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.82 by $3.93. The firm had revenue of $200.61 billion during 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%. The business’s revenue was up 19.6% on a year-over-year basis. During the same quarter last year, the business earned $1.68 EPS. As a group, sell-side analysts anticipate that Amazon.com, Inc. will post 8.03 EPS for the current year.

Insider Transactions at Amazon.com

In other Amazon.com news, SVP David Zapolsky sold 9,258 shares of the stock in a transaction dated Monday, August 24th. The stock was 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 directly owned 41,190 shares in the company, valued at approximately $10,699,926.30. This trade represents a 18.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 14,541 shares of Amazon.com 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 sale, the chief executive officer owned 17,794 shares of the company’s stock, valued at $4,609,713.64. The trade was a 44.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 71,589 shares of company stock worth $18,580,515. 8.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in AMZN. State Street Corp boosted its holdings in Amazon.com by 5.5% in the 2nd 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. Auto Owners Insurance Co boosted its stake in shares of Amazon.com by 27,376.7% in the fourth 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 during the last quarter. Bank of America Corp DE purchased a new stake in shares of Amazon.com during the second quarter worth approximately $22,218,775,000. Bank of New York Mellon Corp acquired a new position in Amazon.com in the 2nd quarter valued at $16,341,405,000. Finally, Amundi lifted its holdings in Amazon.com by 3.9% in the 2nd 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 in the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

Amazon.com Company Profile

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.