Amazon.com (NASDAQ:AMZN) Trading 1% Higher – Still a Buy?

Amazon.com, Inc. (NASDAQ:AMZN) traded up 1% during mid-day trading on Friday . The company traded as high as $210.33 and last traded at $210.00. 56,460,863 shares were traded during trading, an increase of 5% from the average session volume of 53,914,824 shares. The stock had previously closed at $207.92.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Amazon agreed to lead a record OpenAI funding round with a $50 billion commitment and will make AWS the exclusive third?party cloud distributor for OpenAI — a major strategic win for AWS revenue and enterprise positioning in the AI stack. OpenAI’s $110 billion funding round draws investment from Amazon, Nvidia, SoftBank (Reuters)
• Positive Sentiment: CEO Andy Jassy framed the deal as an early, high?upside AI opportunity; the partnership gives Amazon differentiated AI product and distribution leverage if OpenAI adoption accelerates. Amazon to Invest $50 Billion in OpenAI as Part of Strategic Partnership (Barron’s)
• Positive Sentiment: High?profile investors have recently added to AMZN positions, suggesting some institutional conviction in Amazon’s AI and cloud story. Billionaire Stanley Druckenmiller Piled Into Alphabet and Amazon (Fool)
• Neutral Sentiment: The $50B commitment appears staged: initial $15B now with additional tranches tied to milestones (IPO/AGI), so actual near?term cash outflow may be smaller — but the headline size shapes market perception. Amazon’s $50 billion OpenAI investment may depend on IPO or AGI milestone (Reuters)
• Neutral Sentiment: Evercore trimmed Amazon’s price target (from $335 to $285) while keeping an outperform rating — a recalibration that can temper upside expectations without flipping the bull case. Evercore ISI adjusts price target on Amazon to $285 (MarketScreener)
• Negative Sentiment: Investors worry about much larger capex and AI spending: reports flag a potential ~$200B capex program and a prior stock dip after AI?spending disclosures, which pressures free cash flow and near?term margins. Will Heavy Capex Spending Weigh on Amazon’s AI Ambitions? (Zacks)
• Negative Sentiment: Broader cost and restructuring headlines: Amazon announced roughly 30,000 job cuts (part of industry AI?led reductions), which is a near?term signal of restructuring but also public evidence of disruption and execution risk. US Job Cuts Surge to Highest Level Since Pandemic (Blockonomi)
• Negative Sentiment: Legal risk: a UK court cleared the way for large collective suits from sellers/consumers over alleged marketplace abuses, creating potential multi?billion pound liabilities. Amazon refused permission to appeal go-ahead for UK lawsuits (Reuters)
• Negative Sentiment: Insider selling and short?interest chatter add to headline pressure; these can amplify volatility even if they don’t change fundamentals. Insider Selling: Amazon CEO Sells Stock (AmericanBankingNews)

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Pivotal Research raised their target price on Amazon.com from $285.00 to $300.00 and gave the stock a “buy” rating in a research report on Friday, October 31st. Monness Crespi & Hardt cut their price objective on shares of Amazon.com from $300.00 to $280.00 and set a “buy” rating on the stock in a report on Friday, February 6th. Rosenblatt Securities lowered their target price on shares of Amazon.com from $305.00 to $296.00 and set a “buy” rating for the company in a report on Friday, February 6th. KeyCorp set a $285.00 target price on shares of Amazon.com in a research report on Friday, February 6th. Finally, Stifel Nicolaus set a $300.00 price target on shares of Amazon.com and gave the company a “buy” rating in a research report on Tuesday, January 27th. One analyst has rated the stock with a Strong Buy rating, fifty-three have assigned a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $287.29.

Amazon.com Stock Performance

The company has a quick ratio of 0.88, a current ratio of 1.05 and a debt-to-equity ratio of 0.16. The stock has a fifty day moving average price of $227.00 and a 200-day moving average price of $227.79. The firm has a market cap of $2.25 trillion, a price-to-earnings ratio of 29.29, a price-to-earnings-growth ratio of 1.35 and a beta of 1.37.

Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings data on Thursday, February 5th. The e-commerce giant reported $1.95 earnings per share for the quarter, missing analysts’ consensus estimates of $1.97 by ($0.02). The firm had revenue of $213.39 billion during the quarter, compared to analysts’ expectations of $211.02 billion. Amazon.com had a net margin of 10.83% and a return on equity of 21.87%. The business’s quarterly revenue was up 13.6% on a year-over-year basis. During the same quarter last year, the business earned $1.86 earnings per share. On average, analysts expect that Amazon.com, Inc. will post 6.31 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Andrew R. Jassy sold 19,872 shares of the business’s stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $205.18, for a total transaction of $4,077,336.96. Following the transaction, the chief executive officer directly owned 2,238,118 shares in the company, valued at $459,217,051.24. The trade was a 0.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Douglas J. Herrington sold 6,835 shares of the stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $205.82, for a total transaction of $1,406,779.70. Following the transaction, the chief executive officer directly owned 522,361 shares of the company’s stock, valued at $107,512,341.02. This represents a 1.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 73,186 shares of company stock valued at $15,067,539. Corporate insiders own 9.70% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Arwa LLC purchased a new stake in shares of Amazon.com during the 4th quarter worth $439,000. Instrumental Wealth LLC lifted its stake in shares of Amazon.com by 6.9% in the fourth quarter. Instrumental Wealth LLC now owns 7,285 shares of the e-commerce giant’s stock valued at $1,682,000 after purchasing an additional 472 shares during the period. Mishpacha Holdings Corp purchased a new stake in Amazon.com during the fourth quarter worth about $8,030,000. Financially in Tune LLC purchased a new stake in Amazon.com during the fourth quarter worth about $505,000. Finally, TD Capital Management LLC grew its position in Amazon.com by 68.3% during the fourth quarter. TD Capital Management LLC now owns 6,234 shares of the e-commerce giant’s stock worth $1,439,000 after buying an additional 2,530 shares during the period. Hedge funds and other 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.