Amazon.com (NASDAQ:AMZN) Trading 3.2% Higher – Should You Buy?

Amazon.com, Inc. (NASDAQ:AMZN)’s share price shot up 3.2% during mid-day trading on Monday . The stock traded as high as $249.71 and last traded at $240.14. Approximately 75,714,164 shares traded hands during mid-day trading, an increase of 49% from the average daily volume of 50,650,547 shares. The stock had previously closed at $232.69.

Key Amazon.com News

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

• Positive Sentiment: Third-party data from Adobe and other trackers suggests Amazon’s extended Prime Day delivered record online spending of about $26.4 billion, reinforcing expectations for stronger retail revenue and membership engagement. Amazon climbs as Adobe data points to stronger-than-expected Prime Day demand
• Positive Sentiment: Amazon also raised prices on some AWS cloud capacity products, a sign of improving pricing power in its high-margin cloud business. Amazon’s Stock Is On the Rise. It’s Hiking Cloud Prices, and Prime Day Sales Likely Topped Estimates.
• Positive Sentiment: Investor sentiment is being lifted by continued optimism around AWS and AI infrastructure spending, with articles highlighting firm cloud demand and Amazon’s role in the broader AI build-out. Amazon Shares Rise as Investors Weigh AWS AI Momentum and Prime Day Read-Through
• Positive Sentiment: Amazon is also benefiting from continued bullish commentary around AI-related partnerships and logistics/data-center expansion, which supports the long-term growth story. Amazon.com (AMZN) Partners With Nokia, Here’s What You Need to Know
• Neutral Sentiment: Several pieces also frame Amazon as a major beneficiary of AI adoption, including integrations with ad-tech, automotive voice AI, and enterprise cloud services. These are supportive of the long-term thesis but are less likely to move the stock immediately. Comscore Integrates Proximic Contextual and Predictive Audience Segments into Amazon (AMZN) DSP
• Negative Sentiment: A few articles are more cautionary, including commentary that new rivals are challenging Amazon’s Kindle/Goodreads ecosystem and that heavy AI spending could face skepticism. These do not appear to outweigh today’s positive Prime Day and AWS-driven sentiment. Watch out, Amazon: the Kobo eReader now has a Goodreads rival

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. Guggenheim reiterated a “buy” rating and set a $320.00 price target (up from $300.00) on shares of Amazon.com in a report on Thursday, April 30th. Phillip Securities raised Amazon.com from a “moderate buy” rating to a “buy” rating and set a $280.00 price objective on the stock in a research report on Wednesday, May 13th. Jefferies Financial Group reiterated a “buy” rating on shares of Amazon.com in a research note on Thursday, June 18th. Scotiabank reissued an “outperform” rating and issued a $325.00 target price (up from $275.00) on shares of Amazon.com in a report on Thursday, April 30th. Finally, Robert W. Baird boosted their price target on Amazon.com from $285.00 to $300.00 and gave the stock an “outperform” rating in a research note 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. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $312.78.

Amazon.com Trading Up 3.2%

The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01. The stock’s 50-day moving average is $255.53 and its two-hundred day moving average is $234.18. The company has a market cap of $2.58 trillion, a P/E ratio of 28.72, a P/E/G ratio of 1.74 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN) last posted 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. The business had revenue of $181.52 billion during the quarter, compared to the consensus estimate of $177.28 billion. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The firm’s revenue was up 16.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.59 EPS. As a group, equities research analysts predict that Amazon.com, Inc. will post 7.71 earnings per share for the current fiscal year.

Insider Activity at Amazon.com

In other Amazon.com news, VP Shelley Reynolds sold 2,363 shares of the stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $262.38, for a total value of $620,003.94. Following the transaction, the vice president owned 119,780 shares of the company’s stock, valued at approximately $31,427,876.40. This represents a 1.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of the firm’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 completion of the transaction, 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 195,774 shares of company stock valued at $51,614,434 in the last 90 days. 8.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Amazon.com

Hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its stake in shares of Amazon.com by 1.1% in 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 purchasing an additional 8,913,959 shares in the last quarter. State Street Corp increased its stake in Amazon.com by 1.8% in the 4th quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant’s stock worth $89,708,913,000 after buying an additional 6,971,680 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of 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 acquiring an additional 2,479,324 shares in the last quarter. Norges Bank purchased a new stake in Amazon.com during the 4th quarter valued at approximately $32,868,735,000. Finally, Auto Owners Insurance Co grew its holdings in Amazon.com by 27,376.7% during the 4th 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 buying an additional 98,090,585 shares in the last quarter. Institutional investors own 72.20% of the company’s stock.

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.