Amazon.com (NASDAQ:AMZN) Releases Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Amazon.com (NASDAQ:AMZN) released its quarterly earnings results on Thursday. The e-commerce giant reported $1.89 earnings per share for the quarter, missing the consensus estimate of $1.97 by ($0.08), FiscalAI reports. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%. The company had revenue of $201.94 billion for the quarter, compared to analysts’ expectations of $202.22 billion.

Amazon.com Trading Down 4.2%

Shares of AMZN stock traded down $10.81 on Thursday, hitting $243.79. The stock had a trading volume of 71,355,722 shares, compared to its average volume of 45,900,746. Amazon.com has a twelve month low of $196.00 and a twelve month high of $287.20. The company has a fifty day moving average price of $255.11 and a two-hundred day moving average price of $243.14. The firm has a market cap of $2.63 trillion, a P/E ratio of 19.61, a PEG ratio of 2.04 and a beta of 1.45. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23.

Insider Buying and Selling

In other Amazon.com news, CEO Andrew Jassy sold 20,000 shares of the business’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the sale, the chief executive officer directly owned 2,235,766 shares of the company’s stock, valued at $579,085,751.66. The trade was a 0.89% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 14,541 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $259.06, for a total transaction of $3,766,991.46. Following the sale, the chief executive officer directly owned 17,794 shares in the company, valued at $4,609,713.64. This trade represents a 44.97% 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. Over the last quarter, insiders sold 71,589 shares of company stock valued at $18,580,515. Corporate insiders own 8.90% of the company’s stock.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: AWS demand remains strong. Analysts expect AWS revenue growth of roughly 38%, while Amazon has said much of its cloud capacity is booked through this year and into 2027. A reported $496 billion backlog and large customer commitments, including Anthropic’s minimum-spending agreement, support the long-term cloud outlook. Amazon to report Q3 earnings after the bell
• Positive Sentiment: AI infrastructure demand is creating strategic opportunities. Amazon’s long-term power agreements, including support for more than $3 billion of investment at Maryland’s Calvert Cliffs nuclear plant, could help secure electricity for future data centers. The company is also expanding satellite connectivity following regulatory approval for its Globalstar transaction. Amazon wins FCC approval for Globalstar deal
• Neutral Sentiment: Tonight’s earnings are the key catalyst. Investors will focus on AWS growth, operating margins, capital expenditures, free cash flow, and management’s outlook for AI monetization. Options markets imply an unusually large post-earnings move, reflecting elevated uncertainty. Expected Amazon earnings move
• Negative Sentiment: AI spending and cash flow are the central concern. Amazon reportedly invested approximately $53 billion in AI this year, while free cash flow turned negative. Its broader 2026 spending plan could approach $220 billion, increasing pressure on management to demonstrate near-term returns from data-center and AI investment. Amazon AI spending and Q3 earnings preview
• Negative Sentiment: Broader technology-sector weakness is raising the bar. Alphabet’s sharp post-earnings selloff, linked to heavy AI spending and renewed cash-flow concerns, has made investors more sensitive to AWS margins and Amazon’s spending guidance.
• Negative Sentiment: Amazon’s retail moat may face new competition. Investor Gene Munster warned that AI shopping agents could become the starting point for purchases, potentially weakening Amazon’s control over product discovery and customer traffic. Gene Munster warns AI bots threaten Amazon shopping

Analysts Set New Price Targets

A number of analysts recently weighed in on AMZN shares. Yorkville Ives started coverage on shares of Amazon.com in a research report on Monday, October 19th. They set an “outperform” rating and a $300.00 price target for the company. Benchmark lifted their target price on Amazon.com from $370.00 to $400.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Monness Crespi & Hardt boosted their price target on shares of Amazon.com from $315.00 to $330.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. TD Cowen reiterated a “buy” rating and issued a $350.00 target price on shares of Amazon.com in a report on Monday, October 5th. Finally, Citigroup reissued a “market outperform” rating on shares of Amazon.com in a research note on Friday, August 14th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Amazon.com presently has an average rating of “Moderate Buy” and an average price target of $325.12.

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company founded by Jeff Bezos in 1994. Originally launched as an online bookstore, the company has expanded into a broad digital marketplace offering consumer products across numerous categories, including electronics, household goods, apparel, groceries and other merchandise. Amazon also sells products under its own brands and provides logistics, fulfillment and delivery services that support its retail operations and third-party sellers.

The company’s principal businesses include online and physical retail, Amazon Web Services (AWS), digital advertising, subscription services and consumer technology.