Amazon.com (NASDAQ:AMZN) Trading 3.5% Higher – Still a Buy?

Amazon.com, Inc. (NASDAQ:AMZN) traded up 3.5% during trading on Tuesday . The company traded as high as $210.28 and last traded at $208.0390. 55,625,347 shares were traded during mid-day trading, an increase of 9% from the average session volume of 51,004,910 shares. The stock had previously closed at $200.95.

Amazon.com News Summary

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

• Positive Sentiment: Amazon is reportedly in talks to buy satellite operator Globalstar for about $9 billion — a deal that would accelerate its Kuiper/Leo network and strengthen its ability to compete with SpaceX’s Starlink (though Apple’s stake in Globalstar complicates negotiations). Read More.
• Positive Sentiment: Amazon secured a major commercial win for its Leo service: a multi?year deal to equip hundreds of Delta Air Lines aircraft (initially ~500) with in?flight LEO connectivity beginning in 2028 — a tangible revenue/scale catalyst for its satellite business. Read More.
• Positive Sentiment: Amazon is publicly tied to a massive OpenAI funding round and headlines say it’s backing OpenAI’s growth (reports include a large Amazon commitment). Stronger OpenAI ties support Amazon’s AI/cloud positioning and long?term AWS demand. Read More. · Read More.
• Positive Sentiment: Product/fintech moves: Amazon is launching new small?business credit cards in partnership with U.S. Bank/Mastercard (replacing the AmEx relationship), which could widen payments revenue and SMB engagement. Read More.
• Neutral Sentiment: Market and analyst support: a mix of institutional buying, upgrades and bullish holdings (D.E. Shaw, Tigress, Citadel mentions) underline long?term conviction in AMZN’s AI/cloud upside, but these are longer?horizon positives. Read More.
• Negative Sentiment: Geopolitical/operational risk: the Financial Times/Reuters report that an Iranian strike damaged an AWS data center in Bahrain — a direct operational and reputational risk for AWS with potential service and cost implications. Read More.
• Negative Sentiment: Regulatory/competitive headwind: SpaceX filed an FCC complaint accusing Amazon of orbital debris violations — an escalation that could delay or raise the cost of Leo rollouts. Read More.
• Negative Sentiment: Talent/execution concern: reports that a key AI?chip executive left Amazon add execution risk to its in?house silicon plans, a potential headwind for low?latency AI infrastructure ambitions. Read More.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on AMZN shares. Needham & Company LLC reaffirmed a “buy” rating and set a $265.00 price target on shares of Amazon.com in a research note on Tuesday, March 17th. Scotiabank restated an “outperform” rating and issued a $275.00 price objective (down from $300.00) on shares of Amazon.com in a report on Friday, February 6th. Citigroup raised their price objective on shares of Amazon.com from $265.00 to $285.00 and gave the company a “buy” rating in a research report on Wednesday, March 25th. Roth Mkm reiterated a “buy” rating and issued a $295.00 target price (up from $270.00) on shares of Amazon.com in a research note on Monday, January 26th. Finally, Guggenheim restated a “buy” rating and set a $300.00 price target on shares of Amazon.com in a research note on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, fifty-three have issued a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $286.57.

Amazon.com Trading Up 1.1%

The stock has a market capitalization of $2.26 trillion, a price-to-earnings ratio of 29.37, a price-to-earnings-growth ratio of 1.56 and a beta of 1.38. The company has a current ratio of 1.05, a quick ratio of 0.88 and a debt-to-equity ratio of 0.16. The company has a fifty day moving average of $214.78 and a two-hundred day moving average of $224.63.

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

Insider Transactions at Amazon.com

In other Amazon.com news, CEO Andrew R. Jassy sold 19,872 shares of the firm’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $205.18, for a total value of $4,077,336.96. Following the sale, the chief executive officer owned 2,238,118 shares of the company’s stock, valued at $459,217,051.24. This trade represents a 0.88% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Shelley Reynolds sold 2,695 shares of the firm’s stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $205.90, for a total transaction of $554,900.50. Following the completion of the sale, the vice president owned 119,780 shares in the company, valued at approximately $24,662,702. The trade was a 2.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 71,686 shares of company stock worth $14,688,739. Corporate insiders own 9.70% of the company’s stock.

Institutional Investors Weigh In On Amazon.com

Institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its position in shares of Amazon.com by 10.9% during the 4th quarter. Brighton Jones LLC now owns 4,036,091 shares of the e-commerce giant’s stock valued at $885,478,000 after acquiring an additional 397,007 shares in the last quarter. Revolve Wealth Partners LLC grew its holdings 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 purchasing an additional 986 shares during the last quarter. Bank Pictet & Cie Europe AG grew its holdings 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 purchasing an additional 54,987 shares during the last quarter. Highview Capital Management LLC DE increased its position 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 purchasing an additional 1,518 shares in the last quarter. Finally, Liberty Square Wealth Partners LLC bought a new position in Amazon.com during the 4th quarter valued at about $2,153,000. 72.20% of the stock is owned by institutional investors and hedge funds.

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.