Amazon.com (NASDAQ:AMZN) Trading 3.1% Higher – Here’s Why

Amazon.com, Inc. (NASDAQ:AMZN)’s share price rose 3.1% during mid-day trading on Monday . The stock traded as high as $247.81 and last traded at $246.02. Approximately 41,206,604 shares changed hands during trading, a decline of 14% from the average daily volume of 47,982,906 shares. The stock had previously closed at $238.55.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Amazon is drawing bullish attention after reports highlighted its fifth straight earnings beat, AWS posting its fastest growth in 15 quarters, and its in-house chips business running at about a $20 billion annual revenue rate. Can Amazon Reach $300 Per Share Before Year-End 2026?
• Positive Sentiment: Investor sentiment improved after reports that Amazon plans to spend around $200 billion in capex this year, signaling aggressive investment in AI and cloud capacity. Amazon Stock (AMZN) Rises on This AI News
• Positive Sentiment: Amazon’s Graviton5 custom processor became generally available for AWS customers, which could improve cloud margins and deepen the company’s competitive moat in AI workloads. Amazon Graviton5 Chip Aims To Deepen AWS AI Margins And Moat
• Positive Sentiment: Amazon is expanding internationally, including a push into South Africa and a larger India infrastructure buildout, both of which point to additional long-term revenue opportunities. Amazon Accelerates India Infrastructure Push: How to Play the Stock
• Neutral Sentiment: Amazon’s warning about security issues in Anthropic’s latest AI models led to a U.S. crackdown and shutdown of those models; while it may highlight Amazon’s influence, the episode also keeps scrutiny on one of its key AI investments. Amazon CEO reportedly raised Anthropic Fable concerns prior to U.S. order forcing models offline

Analyst Ratings Changes

AMZN has been the topic of several research reports. Canaccord Genuity Group raised their price objective on shares of Amazon.com from $300.00 to $330.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. TD Cowen reissued a “buy” rating and set a $350.00 price objective on shares of Amazon.com in a research report on Tuesday, May 12th. The Goldman Sachs Group reissued a “buy” rating and set a $325.00 price objective (up from $275.00) on shares of Amazon.com in a research report on Thursday, April 30th. BMO Capital Markets raised their price objective on shares of Amazon.com from $310.00 to $315.00 and gave the stock an “outperform” rating in a research report on Thursday, April 23rd. Finally, William Blair reissued an “outperform” rating on shares of Amazon.com in a research report on Thursday, April 9th. Fifty-seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, Amazon.com currently has a consensus rating of “Moderate Buy” and a consensus price target of $312.78.

Amazon.com Stock Performance

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 has a market cap of $2.65 trillion, a price-to-earnings ratio of 29.43, a P/E/G ratio of 1.79 and a beta of 1.45. The stock’s 50-day moving average is $253.49 and its 200 day moving average is $233.67.

Amazon.com (NASDAQ:AMZN) last announced its quarterly earnings data on Wednesday, April 29th. The e-commerce giant reported $2.78 EPS for the quarter, beating analysts’ consensus estimates of $1.63 by $1.15. The firm 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% compared to the same quarter last year. During the same quarter last year, the firm earned $1.59 earnings per share. As a group, analysts predict that Amazon.com, Inc. will post 7.71 earnings per share for the current fiscal year.

Insider Activity

In related news, VP Shelley Reynolds sold 2,363 shares of the business’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $262.38, for a total transaction of $620,003.94. Following the sale, the vice president owned 119,780 shares of the company’s stock, valued at approximately $31,427,876.40. The trade was a 1.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 1,000 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $266.19, for a total transaction of $266,190.00. Following the sale, the chief executive officer directly owned 485,527 shares in the company, valued at approximately $129,242,432.13. This represents a 0.21% 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 have sold 195,774 shares of company stock valued at $51,614,434 in the last quarter. Insiders own 8.90% of the company’s stock.

Institutional Trading of Amazon.com

A number of institutional investors have recently added to or reduced their stakes in the stock. Compagnie Lombard Odier SCmA purchased a new stake in shares of Amazon.com in the third quarter valued at about $451,642,000. Narwhal Capital Management lifted its holdings in shares of Amazon.com by 2.3% in the fourth quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant’s stock valued at $49,997,000 after purchasing an additional 4,854 shares in the last quarter. Weaver Capital Management LLC lifted its holdings in shares of Amazon.com by 13.6% in the fourth quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant’s stock valued at $9,063,000 after purchasing an additional 4,713 shares in the last quarter. Ethos Financial Group LLC raised its position in shares of Amazon.com by 9.6% in the fourth quarter. Ethos Financial Group LLC now owns 36,485 shares of the e-commerce giant’s stock valued at $8,421,000 after buying an additional 3,196 shares during the last quarter. Finally, Baltimore Washington Financial Advisors Inc. raised its position in shares of Amazon.com by 1.9% in the third quarter. Baltimore Washington Financial Advisors Inc. now owns 239,862 shares of the e-commerce giant’s stock valued at $52,667,000 after buying an additional 4,558 shares during the last quarter. Hedge funds and other 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.