Amazon.com (NASDAQ:AMZN) Shares Up 1.1% – Should You Buy?

Amazon.com, Inc. (NASDAQ:AMZN) shares rose 1.1% on Monday . The stock traded as high as $252.89 and last traded at $249.99. Approximately 31,949,686 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 49,705,992 shares. The stock had previously closed at $247.23.

Amazon.com News Roundup

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

• Positive Sentiment: Analysts are lifting long-term growth forecasts after pointing to a roughly $485 billion AWS backlog and stronger cloud demand, reinforcing the case for Amazon’s AI-driven expansion. What Is Going on With Amazon Stock on Monday?
• Positive Sentiment: Commentary says Amazon’s $200 billion AI capex plan is backed by real demand, especially for Trainium chips and contracted business, which could support future revenue growth. Andy Jassy Said Amazon Isn’t Investing $200 Billion in AI “On a Hunch.”
• Positive Sentiment: Several bullish articles argue Amazon remains undervalued relative to its AI hyperscaler peers and could benefit as AI spending starts to convert into cash flow growth. Undervalued and Winning the AI Hyperscaler War
• Neutral Sentiment: Amazon Web Services hired a veteran Microsoft security executive, a sign of continued talent competition in cloud and security, but not an immediate financial catalyst. Veteran Microsoft security executive joins AWS
• Negative Sentiment: Some coverage continues to question Amazon’s cash generation, noting that operating cash flow is strong but free cash flow has been negative due to heavy investment spending. Big Tech Is Minting Mountains of Cash — But Amazon’s Is Vanishing
• Negative Sentiment: The upcoming July 30 earnings report is being framed as a make-or-break test for whether Amazon’s AI spending is paying off, keeping pressure on the stock if results disappoint. Amazon’s AI Spending Is About to Face Its Most Important AWS Test Yet

Analyst Ratings Changes

A number of research firms recently commented on AMZN. Royal Bank Of Canada reaffirmed a “buy” rating on shares of Amazon.com in a research note on Tuesday, June 16th. BMO Capital Markets increased their price objective on shares of Amazon.com from $310.00 to $315.00 and gave the stock an “outperform” rating in a research report on Thursday, April 23rd. William Blair restated an “outperform” rating on shares of Amazon.com in a research report on Thursday, April 9th. Susquehanna reaffirmed a “positive” rating and set a $325.00 target price (up from $300.00) on shares of Amazon.com in a research note on Thursday, April 30th. Finally, Wolfe Research reiterated an “outperform” rating and issued a $320.00 price target (up from $245.00) on shares of Amazon.com in a report on Thursday, April 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $312.76.

Amazon.com Stock Performance

The company has a market capitalization of $2.69 trillion, a PE ratio of 29.90, a PEG ratio of 1.84 and a beta of 1.46. The company has a current ratio of 1.18, a quick ratio of 1.01 and a debt-to-equity ratio of 0.27. The firm’s 50-day simple moving average is $250.83 and its 200-day simple moving average is $235.96.

Amazon.com (NASDAQ:AMZN) last issued its earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 EPS for the quarter, topping analysts’ consensus estimates of $1.63 by $1.15. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The business had revenue of $181.52 billion for the quarter, compared to analyst estimates of $177.28 billion. During the same period last year, the company posted $1.59 earnings per share. The company’s quarterly revenue was up 16.6% compared to the same quarter last year. On average, research analysts predict that Amazon.com, Inc. will post 7.75 earnings per share for the current year.

Insider Buying and Selling at Amazon.com

In related news, CEO Matthew S. Garman sold 15,467 shares of Amazon.com stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $263.40, for a total value of $4,074,007.80. Following the completion of the sale, the chief executive officer directly owned 14,159 shares in the company, valued at $3,729,480.60. The trade was a 52.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the company’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the completion of the sale, the senior vice president directly owned 41,190 shares of the company’s stock, valued at approximately $11,060,750.70. This trade represents a 18.37% 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 144,274 shares of company stock worth $38,716,204 over the last quarter. Insiders own 8.90% of the company’s stock.

Institutional Investors Weigh In On Amazon.com

Large investors have recently modified their holdings of the business. Brighton Jones LLC lifted its position in shares of Amazon.com by 10.9% during the fourth quarter. Brighton Jones LLC now owns 4,036,091 shares of the e-commerce giant’s stock valued at $885,478,000 after buying an additional 397,007 shares during the last quarter. Revolve Wealth Partners LLC grew its position in shares of Amazon.com by 4.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 25,045 shares of the e-commerce giant’s stock worth $5,495,000 after buying an additional 986 shares during the last quarter. Bank Pictet & Cie Europe AG grew its position in shares of Amazon.com by 2.8% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,016,869 shares of the e-commerce giant’s stock worth $442,481,000 after buying an additional 54,987 shares during the last quarter. Highview Capital Management LLC DE raised its stake in shares of Amazon.com by 5.5% during the 4th quarter. Highview Capital Management LLC DE now owns 28,975 shares of the e-commerce giant’s stock worth $6,357,000 after acquiring an additional 1,518 shares in the last quarter. Finally, Liberty Square Wealth Partners LLC purchased a new stake in Amazon.com during the fourth quarter valued at approximately $2,153,000. Institutional investors own 72.20% of the company’s stock.

Amazon.com Company Profile

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.