Erste Group Bank Forecasts Stronger Earnings for Amazon.com

Amazon.com, Inc. (NASDAQ:AMZN) – Analysts at Erste Group Bank upped their FY2027 EPS estimates for Amazon.com in a research note issued on Tuesday, May 5th. Erste Group Bank analyst S. Lingnau now anticipates that the e-commerce giant will post earnings per share of $9.75 for the year, up from their prior forecast of $9.44. The consensus estimate for Amazon.com’s current full-year earnings is $7.98 per share.

Amazon.com (NASDAQ:AMZN) last released its quarterly earnings data 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 business had revenue of $181.52 billion during the quarter, compared to analyst estimates of $177.28 billion. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The business’s revenue for the quarter was up 16.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.59 EPS.

A number of other equities analysts have also issued reports on the stock. Piper Sandler reiterated an “overweight” rating and issued a $315.00 target price (up from $260.00) on shares of Amazon.com in a research report on Thursday, April 30th. Guggenheim reaffirmed a “buy” rating and set a $320.00 price target (up from $300.00) on shares of Amazon.com in a research note on Thursday, April 30th. Scotiabank reaffirmed an “outperform” rating and set a $325.00 target price (up from $275.00) on shares of Amazon.com in a research report on Thursday, April 30th. Tigress Financial increased their price target on Amazon.com from $305.00 to $315.00 and gave the company a “buy” rating in a research report on Wednesday, March 25th. Finally, New Street Research upped their price objective on shares of Amazon.com from $280.00 to $350.00 and gave the company a “buy” rating in a research note on Monday. Fifty-six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $313.09.

Amazon.com Price Performance

Shares of AMZN opened at $271.24 on Friday. Amazon.com has a one year low of $191.16 and a one year high of $278.56. The stock’s fifty day moving average is $227.55 and its 200-day moving average is $228.72. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.18. The firm has a market capitalization of $2.92 trillion, a price-to-earnings ratio of 32.35, a price-to-earnings-growth ratio of 1.99 and a beta of 1.46.

Hedge Funds Weigh In On Amazon.com

A number of hedge funds have recently modified their holdings of the stock. Fairway Wealth LLC boosted its position in Amazon.com by 113.2% in the third quarter. Fairway Wealth LLC now owns 113 shares of the e-commerce giant’s stock valued at $25,000 after buying an additional 60 shares in the last quarter. Sellwood Investment Partners LLC bought a new stake in shares of Amazon.com during the third quarter worth $27,000. MilWealth Group LLC raised its holdings in shares of Amazon.com by 79.0% in the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after buying an additional 79 shares during the last quarter. Lifetime Wealth Management P.C. acquired a new position in Amazon.com during the 4th quarter worth about $45,000. Finally, Elkhorn Partners Limited Partnership grew its holdings in Amazon.com by 900.0% during the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock worth $46,000 after acquiring an additional 180 shares during the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, SVP David Zapolsky sold 10,649 shares of the firm’s stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $205.43, for a total value of $2,187,624.07. Following the transaction, the senior vice president directly owned 41,190 shares in the company, valued at approximately $8,461,661.70. This trade represents a 20.54% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Andrew R. Jassy sold 31,352 shares of Amazon.com stock in a transaction on Monday, May 4th. The stock was sold at an average price of $275.00, for a total transaction of $8,621,800.00. Following the completion of the transaction, the chief executive officer owned 2,175,766 shares in the company, valued at $598,335,650. This trade represents a 1.42% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 191,593 shares of company stock valued at $46,289,241 in the last quarter. 8.90% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Q1 results and analyst upgrades reinforce the growth/AI narrative — Amazon’s April quarter beat consensus, AWS growth reaccelerated and several brokers raised targets and ratings, supporting upside expectations. Is Amazon a Must?Buy After Q1 Beats?
• Positive Sentiment: Street estimate lift — Erste Group raised its FY2027 EPS forecast for AMZN, indicating some analysts expect stronger forward earnings as AI and AWS scale. MarketBeat AMZN
• Positive Sentiment: New commercial avenues — Amazon opened its full logistics stack to third parties (Amazon Supply Chain Services) and expanded pharmacy offerings (same?day Ozempic pill delivery), diversifying revenue and potentially improving margins over time. Amazon Opens Logistics Network
• Positive Sentiment: Partner integrations for Bedrock agents — Payments and wallet integrations with Coinbase/Stripe expand Bedrock’s commerce capabilities, supporting AWS monetization of agentic AI services. Bedrock Agent Payments
• Neutral Sentiment: Insider sales disclosed — CEO and other executives sold shares under pre?arranged 10b5?1 plans; filings are worth noting but appear planned rather than opportunistic. SEC Form 4 (Jassy Sale)
• Neutral Sentiment: Content and marketing investments — Prime Video’s regional spend (e.g., €90M in French-language production) supports engagement but is small vs. AMZN’s scale. Prime Video Investment
• Negative Sentiment: AWS outage raises near?term reliability concerns — a cooling failure in a Northern Virginia AWS zone disrupted services for Coinbase and other customers, spotlighting operational risk for AWS-dependent clients. AWS Cooling Issue Hits Coinbase
• Negative Sentiment: CapEx and FCF pressure from the AI arms race — hyperscaler AI capex is draining free cash flow and elevating execution/timing risk if AI revenue doesn’t scale fast enough; this is a major focus for investors. Hyperscalers’ Free Cash Flow Dips
• Negative Sentiment: Regulatory/geopolitical cloud risk — reports the EU may restrict use of U.S. cloud providers for sensitive government data adds a potential headwind for AWS in European public?sector contracts. EU May Restrict US Cloud Providers

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.