Amazon.com (NASDAQ:AMZN) Stock Price Up 2.9% – What’s Next?

Amazon.com, Inc. (NASDAQ:AMZN) shares traded up 2.9% during trading on Monday. The stock traded as high as $275.34 and last traded at $266.93. 50,510,704 shares traded hands during mid-day trading, an increase of 8% from the average daily volume of 46,787,617 shares. The stock had previously closed at $259.30.

More Amazon.com News

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

• Positive Sentiment: JPMorgan added Amazon to its Focus List, citing AWS’s growth prospects. Reports point to AWS growing 39% in the latest quarter, a $578 billion backlog, and potential growth above 40% in 2027 and 2028. Amazon Stocks Rise as JPMorgan Adds It to Focus List on AWS
• Positive Sentiment: Investors may also be encouraged by AWS’s strong operating performance and its position to benefit from AI demand. One report says AWS operating income rose 55% to more than $17 billion as revenue growth reached a nearly five-year high. Amazon Stock Gains as AWS Growth Hits a Five-Year High
• Positive Sentiment: A valuation argument may support the shares: Amazon’s reported price-to-earnings ratio has declined from 34 to 21 over the past year, while analysts cited in the article expect normalized earnings per share to nearly double by 2028. Amazon Is the Cheapest It’s Been in Years
• Neutral Sentiment: Amazon Haul is holding a week-long promotional event amid reported customer growth, which could help attract shoppers ahead of the holidays; the deep discounts may also pressure retail margins. Amazon Haul Launches Pre-Holiday Deals as Users Jump 350%
• Negative Sentiment: Risks include intensifying cloud competition and heavy AI-related capital spending. Amazon also narrowly missed analyst estimates for quarterly EPS and revenue, tempering the otherwise strong AWS results. AWS Revenues Up 39% as Cloud Rivals Gain Pace

Analysts Set New Price Targets

A number of brokerages recently commented on AMZN. Barclays restated an “overweight” rating and set a $365.00 price objective (up from $330.00) on shares of Amazon.com in a research note on Friday, July 31st. Zacks Research cut Amazon.com from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 14th. Raymond James Financial reissued an “outperform” rating and set a $250.00 price target on shares of Amazon.com in a report on Friday, October 30th. Oppenheimer reaffirmed an “outperform” rating on shares of Amazon.com in a report on Friday, July 31st. Finally, HSBC reaffirmed a “buy” rating and issued a $310.00 price target on shares of Amazon.com in a research note on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, fifty-five have assigned a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Amazon.com presently has a consensus rating of “Moderate Buy” and an average price target of $321.74.

Amazon.com Stock Performance

The company has a current ratio of 0.99, a quick ratio of 0.82 and a debt-to-equity ratio of 0.28. The company’s 50-day moving average price is $253.96 and its two-hundred day moving average price is $243.57. The company has a market cap of $2.89 trillion, a P/E ratio of 21.58, a price-to-earnings-growth ratio of 1.97 and a beta of 1.49.

Amazon.com (NASDAQ:AMZN) last issued its earnings results on Thursday, October 29th. The e-commerce giant reported $1.89 earnings per share for the quarter, missing analysts’ consensus estimates of $1.97 by ($0.08). The business had revenue of $201.94 billion for the quarter, compared to the consensus estimate of $202.22 billion. Amazon.com had a return on equity of 15.72% and a net margin of 16.90%. The company’s quarterly revenue was up 12.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.95 earnings per share. As a group, equities analysts forecast that Amazon.com, Inc. will post 7.80 earnings per share for the current year.

Insider Buying and Selling at Amazon.com

In related news, CEO Douglas Herrington sold 1,000 shares of the stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $243.47, for a total value of $243,470.00. Following the completion of the transaction, the chief executive officer owned 473,681 shares in the company, valued at $115,327,113.07. This trade represents a 0.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,343 shares of Amazon.com stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $606,860.43. Following the completion of the transaction, the vice president directly owned 119,780 shares in the company, valued at $31,024,217.80. This represents a 1.92% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 71,589 shares of company stock valued at $18,545,595 over the last 90 days. 8.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Amazon.com

Several hedge funds have recently made changes to their positions in the company. Bank of America Corp DE acquired a new stake in shares of Amazon.com in the 2nd quarter valued at approximately $22,218,775,000. Bank of New York Mellon Corp acquired a new position in Amazon.com during the second quarter worth about $16,341,405,000. Legal & General Group Plc purchased a new stake in Amazon.com in the 2nd quarter valued at approximately $12,831,376,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Amazon.com during the second quarter worth $6,631,466,000. Finally, Jupiter Topco LLC purchased a new position in Amazon.com during the second quarter worth $5,910,083,000. Hedge funds and other institutional investors own 72.20% of the company’s stock.

Amazon.com Company Profile

Amazon.com, Inc is a technology and e-commerce company founded by Jeff Bezos in 1994 as an online bookstore. It has since grown into a global business serving consumers, sellers, developers, enterprises and content creators.

Amazon operates online stores and marketplaces, where it sells products directly and enables third-party sellers to reach customers. Its other businesses include Amazon Web Services, which provides cloud computing and related services; digital advertising; Prime memberships; and entertainment offerings such as streaming video and music.