Amazon.com (NASDAQ:AMZN) Stock Price Up 2.1% on Analyst Upgrade

Amazon.com, Inc. (NASDAQ:AMZN) was up 2.1% on Tuesday after Freedom Broker raised their price target on the stock from $255.00 to $330.00. Freedom Broker currently has a buy rating on the stock. Amazon.com traded as high as $252.45 and last traded at $250.69. Approximately 37,370,486 shares were traded during trading, a decline of 19% from the average daily volume of 46,345,898 shares. The stock had previously closed at $245.63.

AMZN has been the topic of a number of other research reports. Monness Crespi & Hardt increased 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. Phillip Securities upgraded Amazon.com from a “moderate buy” rating to a “strong-buy” rating in a report on Monday. Barclays reaffirmed an “overweight” rating and set a $365.00 target price (up from $330.00) on shares of Amazon.com in a research report on Friday, July 31st. Susquehanna reaffirmed a “positive” rating on shares of Amazon.com in a research report on Friday. Finally, Wells Fargo & Company lowered their price target on Amazon.com from $329.00 to $326.00 and set an “overweight” rating on the stock in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $321.02.

Insiders Place Their Bets

In related news, CEO Matthew S. Garman sold 14,541 shares of the business’s stock in a transaction dated 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 completion of the transaction, the chief executive officer owned 17,794 shares of the company’s stock, valued at approximately $4,609,713.64. The trade was a 44.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the business’s 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 transaction, the senior vice president directly owned 41,190 shares of the company’s stock, valued at $10,699,926.30. This represents a 18.35% 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. Insiders sold a total of 70,589 shares of company stock valued at $18,302,125 in the last ninety days. Company insiders own 8.90% of the company’s stock.

Amazon.com News Summary

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

• Positive Sentiment: Freedom Broker raised its price target to $330 from $255 and assigned a Buy rating. Phillip Securities also upgraded Amazon to Strong Buy, adding to positive analyst sentiment. Freedom Broker recommendations
• Positive Sentiment: AWS revenue grew 39% in the latest quarter, its fastest growth in nearly five years and a key reason investors see continued potential in Amazon’s cloud and AI businesses. Coverage also points to improving retail margins as a longer-term opportunity. Amazon earnings and AWS growth
• Positive Sentiment: Amazon has begun offering Black Friday deals early, potentially helping attract shoppers during the holiday season. Early Black Friday deals
• Negative Sentiment: Heavy spending on AI and data centers is weighing on free cash flow. Reports cite a substantial cash outflow and plans for as much as $80 billion in supplier financing, prompting questions about whether future returns will justify the investment. Supplier financing and AI spending
• Negative Sentiment: Investors are also watching e-commerce growth, which has appeared slower, and Amazon’s recent earnings miss. A Prime Day calendar shift partly affected the retail comparison, but concerns about cash flow and spending persist. Amazon earnings, cash flow and growth concerns

Hedge Funds Weigh In On Amazon.com

A number of institutional investors have recently modified their holdings of the stock. TOP Private Wealth LLC. acquired a new position in Amazon.com in the second quarter valued at about $29,000. Bard Associates Inc. bought a new position in Amazon.com in the second quarter valued at approximately $32,000. Longfellow Investment Management Co. LLC acquired a new position in Amazon.com in the 2nd quarter worth $33,000. Atomic Invest LLC boosted its position in shares of Amazon.com by 41.2% during the second quarter. Atomic Invest LLC now owns 168 shares of the e-commerce giant’s stock worth $40,000 after buying an additional 49 shares during the period. Finally, Strategic Wealth Advisors LLC bought a new position in shares of Amazon.com during the 2nd quarter worth approximately $68,000. 72.20% of the stock is owned by institutional investors.

Amazon.com Stock Up 2.1%

The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The firm’s 50 day simple moving average is $254.02 and its 200-day simple moving average is $243.11. The stock has a market capitalization of $2.70 trillion, a price-to-earnings ratio of 20.27, a price-to-earnings-growth ratio of 1.98 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN) last released its quarterly earnings data on Thursday, October 29th. The e-commerce giant reported $1.89 EPS for the quarter, missing the consensus estimate of $1.97 by ($0.08). Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company had revenue of $201.94 billion during the quarter, compared to analyst estimates of $202.22 billion. During the same period in the previous year, the company posted $1.95 EPS. The company’s quarterly revenue was up 12.1% compared to the same quarter last year. Equities analysts expect that Amazon.com, Inc. will post 8.00 earnings per share for the current fiscal year.

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.