Amazon.com (NASDAQ:AMZN) Stock Price Up 3.9% After Earnings Beat

Amazon.com, Inc. (NASDAQ:AMZN) shares were up 3.9% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $239.82 and last traded at $235.50. Approximately 92,235,291 shares changed hands during mid-day trading, an increase of 87% from the average session volume of 49,428,434 shares. The stock had previously closed at $226.65.

The e-commerce giant reported $5.75 EPS for the quarter, beating the consensus estimate of $1.82 by $3.93. The firm had revenue of $200.61 billion during the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.

More Amazon.com News

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

• Positive Sentiment: AWS momentum is the main catalyst. Analysts expect cloud revenue growth of roughly 31%–33%, with advertising and improving e-commerce profitability providing additional support. Strong AWS results or an upbeat outlook could reinforce Amazon’s long-term growth story. What’s Behind the Amazon Stock Bounce Ahead of Q2 Earnings?
• Positive Sentiment: AI infrastructure spending is viewed as a potential growth investment. Amazon’s planned roughly $200 billion in 2026 capital expenditures is aimed largely at data centers and AI capacity. Investors are weighing whether rising customer demand will generate sufficient AWS revenue and profit to justify the investment. Amazon on deck to report earnings after the bell with cloud, capex in focus
• Positive Sentiment: Zoox reached a commercial milestone. U.S. regulators granted Amazon’s autonomous-vehicle unit a temporary exemption allowing limited paid rides in its purpose-built, steering-wheel-free robotaxis. The approval could create a new long-term growth avenue, though near-term financial contribution is likely limited. Amazon’s Zoox wins first US approval for paid robotaxis with no human controls
• Neutral Sentiment: Options markets imply substantial post-earnings volatility. Traders are positioning for an approximately 6.9% move after the report, highlighting the unusually high expectations already embedded in AMZN’s valuation. Amazon Stock Options Traders Expect a 6.9% Move After Today’s Earnings Report
• Negative Sentiment: Spending and execution concerns could limit the advance. Reports of costly AI deployment errors, weaker free cash flow, rising financing needs and competition from Microsoft Azure are increasing scrutiny of Amazon’s AI strategy. Scaling back parts of its homegrown AI-model effort may also be interpreted as a retreat from frontier-model competition. Amazon Contends With Unplanned Overspending on AI

Wall Street Analyst Weigh In

Several research firms recently commented on AMZN. Guggenheim reiterated a “buy” rating and set a $320.00 target price (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. HSBC raised their price target on shares of Amazon.com from $280.00 to $310.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Phillip Securities raised shares of Amazon.com from a “moderate buy” rating to a “buy” rating and set a $280.00 price objective on the stock in a research note on Wednesday, May 13th. TD Securities upgraded Amazon.com to a “buy” rating in a report on Monday, April 13th. Finally, Moffett Nathanson raised their target price on Amazon.com from $283.00 to $288.00 and gave the stock a “buy” rating in a research report on Tuesday, April 7th. Fifty-seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $313.43.

Insider Buying and Selling at Amazon.com

In other news, CEO Matthew S. Garman sold 15,467 shares of the business’s 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 transaction, the chief executive officer directly owned 14,159 shares of the company’s stock, valued at $3,729,480.60. The trade was a 52.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew R. Jassy sold 20,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $263.42, for a total value of $5,268,400.00. Following the sale, the chief executive officer directly owned 2,205,766 shares of the company’s stock, valued at $581,042,879.72. This represents a 0.90% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 136,719 shares of company stock valued at $36,703,652. 8.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Amazon.com

Institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its stake in Amazon.com by 1.1% during the first quarter. Vanguard Group Inc. now owns 832,274,556 shares of the e-commerce giant’s stock worth $158,348,557,000 after acquiring an additional 8,913,959 shares in the last quarter. State Street Corp grew its holdings in Amazon.com by 1.8% in the fourth quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant’s stock worth $89,708,913,000 after purchasing an additional 6,971,680 shares during the period. Geode Capital Management LLC increased its stake in Amazon.com by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 225,120,994 shares of the e-commerce giant’s stock valued at $51,753,622,000 after purchasing an additional 2,479,324 shares in the last quarter. Norges Bank bought a new stake in Amazon.com in the fourth quarter valued at $32,868,735,000. Finally, Auto Owners Insurance Co raised its holdings in shares of Amazon.com by 27,376.7% during the fourth quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant’s stock valued at $2,272,397,000 after purchasing an additional 98,090,585 shares during the period. 72.20% of the stock is owned by institutional investors and hedge funds.

Amazon.com Stock Up 3.9%

The stock has a market cap of $2.53 trillion, a price-to-earnings ratio of 28.17, a price-to-earnings-growth ratio of 1.73 and a beta of 1.46. The firm’s fifty day moving average price is $246.25 and its two-hundred day moving average price is $236.06. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01.

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.