Amazon.com (NASDAQ:AMZN) Stock Price Up 4% – What’s Next?

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price rose 4% during trading on Friday . The stock traded as high as $267.56 and last traded at $266.43. 47,972,899 shares were traded during mid-day trading, a decline of 1% from the average daily volume of 48,629,012 shares. The stock had previously closed at $256.26.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Amazon and Nvidia expanded their strategic partnership by roughly 2 million additional Nvidia GPUs for AWS data centers through 2028, bringing Amazon’s total planned commitment to about 3 million chips. The agreement signals strong anticipated demand for AI computing capacity and improves AWS revenue visibility. Amazon just tripled its order of Nvidia chips over surging demand
• Positive Sentiment: AWS revenue reportedly climbed 37% to $42.2 billion in the second quarter, while Amazon’s AI and custom-chip businesses each surpassed a $25 billion annualized revenue run rate. These figures reinforce the view that AI spending is beginning to create substantial cloud demand. Amazon AI investment gains momentum as AWS revenue surges
• Positive Sentiment: Evercore ISI raised its Amazon price target to $355 from $315. The firm cited improving retail economics and continued momentum in AWS, AI, and cloud services while retaining an Outperform rating. Why is Amazon stock surging today
• Positive Sentiment: Amazon announced power-purchase agreements covering 600 megawatts of carbon-free electricity, including 200 megawatts from four Swedish wind farms. The deals support data-center expansion and reduce long-term power-supply and sustainability risks. Amazon announces wind energy power agreements
• Positive Sentiment: Amazon-backed Zoox is launching robotaxi services in San Francisco, giving Amazon exposure to a potentially large autonomous-transportation market alongside Waymo and Tesla. Amazon-backed Zoox launches robotaxis

Analysts Set New Price Targets

A number of research analysts recently issued reports on AMZN shares. Maxim Group lifted their price objective on shares of Amazon.com from $290.00 to $315.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. DZ Bank upped their target price on Amazon.com from $295.00 to $320.00 and gave the stock a “buy” rating in a research note on Monday, May 4th. Weiss Ratings reiterated a “buy (b)” rating on shares of Amazon.com in a research note on Monday, August 3rd. HSBC reissued a “buy” rating and set a $310.00 price target on shares of Amazon.com in a report on Friday, July 31st. Finally, Telsey Advisory Group set a $335.00 price objective on Amazon.com and gave the company an “outperform” rating in a research note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $323.09.

Amazon.com Stock Up 4.0%

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 company has a market capitalization of $2.87 trillion, a P/E ratio of 21.43, a PEG ratio of 1.73 and a beta of 1.45. The stock has a 50 day moving average price of $251.18 and a 200 day moving average price of $240.27.

Amazon.com (NASDAQ:AMZN) last issued its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, topping analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The business had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. During the same quarter in the previous year, the company posted $1.68 EPS. Amazon.com’s quarterly revenue was up 19.6% compared to the same quarter last year. On average, research analysts anticipate that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.

Insider Activity

In other news, VP Shelley Reynolds sold 2,343 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $606,860.43. Following the sale, the vice president directly owned 119,780 shares in the company, valued at approximately $31,024,217.80. The trade was a 1.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian T. Olsavsky sold 6,172 shares of the company’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $260.31, for a total value of $1,606,633.32. Following the completion of the transaction, the chief financial officer directly owned 109,207 shares of the company’s stock, valued at $28,427,674.17. This represents a 5.35% 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. In the last ninety days, insiders sold 71,589 shares of company stock valued at $18,580,205. 8.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Amazon.com

Several large investors have recently modified their holdings of AMZN. Vanguard Group Inc. grew its position in shares of Amazon.com by 1.1% in the 1st quarter. Vanguard Group Inc. now owns 832,274,556 shares of the e-commerce giant’s stock valued at $158,348,557,000 after buying an additional 8,913,959 shares during the last quarter. State Street Corp raised its position in shares of Amazon.com by 1.8% during the fourth quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant’s stock worth $89,708,913,000 after acquiring an additional 6,971,680 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Amazon.com by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 225,120,994 shares of the e-commerce giant’s stock worth $51,753,622,000 after acquiring an additional 2,479,324 shares during the period. Norges Bank bought a new stake in Amazon.com in the fourth quarter valued at approximately $32,868,735,000. Finally, Auto Owners Insurance Co increased its position in Amazon.com by 27,376.7% during the 4th 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 purchasing an additional 98,090,585 shares during the period. 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.