Amazon.com (NASDAQ:AMZN) Stock Price Up 1.9% – Still a Buy?

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price rose 1.9% during mid-day trading on Tuesday. The company traded as high as $256.67 and last traded at $256.29. Approximately 32,578,271 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 46,751,797 shares. The stock had previously closed at $251.40.

Amazon.com News Roundup

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

• Positive Sentiment: AI financing may improve capital flexibility: Amazon is reportedly exploring a structure to move approximately $8 billion of Nvidia chips into a separately financed vehicle and lease them back. The arrangement could help fund AWS expansion without carrying the full asset burden on Amazon’s balance sheet. Amazon Nvidia Chip Financing Deal
• Positive Sentiment: Analysts remain bullish: Tigress Financial reiterated its rating and price target, while Susquehanna’s Shyam Patil expects significant upside over the next 12 months. TD Cowen also maintained a Buy rating with a $350 target, supporting the view that AMZN’s roughly 20-times earnings valuation is attractive. Amazon Analyst Commentary
• Positive Sentiment: Prime Big Deal Days provide a near-term retail catalyst: The event is underway with discounts across electronics and other categories, potentially supporting fourth-quarter sales, customer engagement, and third-party seller activity. Prime Big Deal Days
• Positive Sentiment: Prime Video secured a six-year Emmy Awards agreement beginning in 2027. The deal strengthens Amazon’s streaming profile and could help attract and retain Prime subscribers, although its direct financial impact is uncertain. Amazon Emmy Awards Deal
• Positive Sentiment: Former Amazon AI leader Rohit Prasad was appointed CEO of Boston Dynamics, highlighting Amazon’s continuing influence in robotics and physical AI. Boston Dynamics Appoints Rohit Prasad
• Neutral Sentiment: AWS continues investing heavily in AI capacity, custom chips, and power infrastructure. Falling AI costs and strong cloud demand are encouraging, but the timing and profitability of those investments remain uncertain. AWS AI Costs
• Negative Sentiment: Commentary warns that data-center spending could push free cash flow negative and leave Amazon carrying substantial costs before new capacity produces revenue. Investors are also concerned about power constraints, permitting delays, and whether AI revenue will justify the buildout. Amazon Data Center Spending Risks
• Negative Sentiment: CEO Douglas Herrington sold 1,000 shares under a pre-arranged Rule 10b5-1 plan. The sale represents only 0.21% of his holdings, making it a minor headline factor rather than a strong confidence signal. SEC Insider Sale Filing

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Susquehanna reissued a “positive” rating on shares of Amazon.com in a research report on Tuesday. Phillip Securities lowered shares of Amazon.com from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Amazon.com in a research note on Monday. Wedbush boosted their price objective on Amazon.com from $293.00 to $310.00 and gave the company an “outperform” rating in a research note on Friday, July 31st. Finally, Monness Crespi & Hardt upped their price objective on Amazon.com from $315.00 to $330.00 and gave the company a “buy” rating in a report on Friday, July 31st. Fifty-six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Amazon.com has an average rating of “Moderate Buy” and an average target price of $322.86.

Amazon.com Trading Up 1.9%

The company has a market cap of $2.76 trillion, a price-to-earnings ratio of 20.62, a price-to-earnings-growth ratio of 1.95 and a beta of 1.45. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. The company’s fifty day moving average price is $257.46 and its two-hundred day moving average price is $248.76.

Amazon.com (NASDAQ:AMZN) last announced its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, topping the consensus estimate of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The business had revenue of $200.61 billion during the quarter, compared to analysts’ expectations of $197.03 billion. During the same quarter in the prior year, the company posted $1.68 earnings per share. The firm’s revenue was up 19.6% on a year-over-year basis. Research analysts expect that Amazon.com, Inc. will post 8.01 earnings per share for the current year.

Insider Transactions at Amazon.com

In other Amazon.com news, CEO Andrew R. Jassy sold 20,000 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $5,180,200.00. Following the completion of the sale, the chief executive officer owned 2,235,766 shares of the company’s stock, valued at approximately $579,085,751.66. This trade represents a 0.89% decrease in their ownership of the stock. The sale 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, SVP David Zapolsky sold 9,258 shares of Amazon.com stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $259.77, for a total value of $2,404,950.66. Following the completion of the sale, the senior vice president owned 41,190 shares in the company, valued at approximately $10,699,926.30. The trade was a 18.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 71,589 shares of company stock valued at $18,580,515. 8.90% of the stock is currently owned by insiders.

Institutional Trading of Amazon.com

Institutional investors and hedge funds have recently modified their holdings of the business. State Street Corp raised its position in Amazon.com by 5.5% in the second quarter. State Street Corp now owns 411,848,346 shares of the e-commerce giant’s stock valued at $95,504,904,000 after purchasing an additional 21,398,025 shares during the period. Auto Owners Insurance Co lifted its stake in Amazon.com by 27,376.7% in 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 acquiring an additional 98,090,585 shares during the last quarter. Bank of America Corp DE acquired a new stake in Amazon.com in the 2nd quarter valued at approximately $22,218,775,000. Bank of New York Mellon Corp bought a new stake in Amazon.com in the second quarter valued at about $16,341,405,000. Finally, Amundi boosted its position in shares of Amazon.com by 3.9% in the second quarter. Amundi now owns 63,822,242 shares of the e-commerce giant’s stock valued at $15,211,393,000 after acquiring an additional 2,421,739 shares during the period. Hedge funds and other institutional investors own 72.20% of the company’s stock.

About Amazon.com

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.