Amazon.com (NASDAQ:AMZN) Trading Up 1.9% – Time to Buy?

Amazon.com, Inc. (NASDAQ:AMZN) was up 1.9% during mid-day trading on Friday . The stock traded as high as $257.59 and last traded at $256.78. Approximately 25,916,895 shares were traded during mid-day trading, a decline of 46% from the average daily volume of 47,656,273 shares. The stock had previously closed at $251.89.

Amazon.com News Roundup

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

• Positive Sentiment: Major Qualcomm AI-chip agreement: Amazon could purchase up to $60 billion of Qualcomm data-center chips and related products over the long term. The deal reinforces AWS’s infrastructure ambitions and could improve chip supply diversification, although it also represents substantial future spending. Qualcomm’s AI Ambitions Get a Boost From Amazon Partnership
• Positive Sentiment: AI investment is showing commercial returns: Analysts argued that Amazon and Alphabet are beginning to generate strong returns from their AI infrastructure spending. Rivian also reported eliminating more than 15 days of manual work per financial close after deploying an AI system on Amazon Bedrock, offering a concrete example of enterprise demand for AWS tools. Forget the Capex Fears: Why Alphabet and Amazon Are Must-Buys
• Positive Sentiment: Prime Air is nearing wider U.K. deployment: Amazon completed more than 500 drone-delivery trial flights near Darlington and is seeking approval to expand service. Broader drone operations could eventually lower last-mile delivery costs and improve delivery speed. Amazon delivery drones set for UK expansion after successful trial
• Positive Sentiment: Additional digital-commerce opportunities: Amazon is allowing selected U.S. brands to advertise in ChatGPT and is adding shopping features to Prime Video, potentially expanding advertising, product discovery, and commerce revenue. Amazon gives OpenAI’s ad business a boost
• Neutral Sentiment: Amazon is broadening its ecosystem: Plans include $230 million for Whole Foods employee benefits, six additional Arianespace launches for Project Kuiper, expanded Amazon Pay insurance offerings in India, and continued Zoox robotaxi testing. These initiatives may create future growth but require investment before material financial benefits are clear.
• Negative Sentiment: Capital-spending concerns remain: Amazon raised £4.25 billion in sterling bonds to help fund AI infrastructure, while Ohio lawmakers are reconsidering data-center tax incentives. Higher financing costs or reduced subsidies could pressure the returns on Amazon’s multibillion-dollar expansion. Amazon raises £4.25 billion in debut sterling bond sale for AI
• Negative Sentiment: Prime Air faces safety and reputational risk: A fatal Miami aircraft accident involving the Prime Air network is drawing renewed scrutiny, with investigators reporting warnings about excessive speed before the crash. Potential regulatory, insurance, and operational consequences could weigh on sentiment. NTSB Says Amazon Plane Pilot Warned It Was Too Fast Before Fatal Miami Crash

Analyst Ratings Changes

AMZN has been the topic of a number of recent analyst reports. UBS Group set a $318.00 price target on shares of Amazon.com and gave the company a “buy” rating in a report on Friday, July 31st. Oppenheimer reiterated an “outperform” rating on shares of Amazon.com in a research report on Friday, July 31st. Roth Capital reiterated a “buy” rating and set a $325.00 price objective on shares of Amazon.com in a research report on Monday, August 3rd. BMO Capital Markets reiterated an “outperform” rating and issued a $360.00 price target (up from $355.00) on shares of Amazon.com in a report on Tuesday, July 28th. Finally, Phillip Securities downgraded shares of Amazon.com from a “strong-buy” rating to a “moderate buy” rating in a report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $323.26.

Amazon.com Stock Performance

The firm has a fifty day moving average price of $255.28 and a 200 day moving average price of $244.04. 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 has a market cap of $2.77 trillion, a PE ratio of 20.67, a price-to-earnings-growth ratio of 1.95 and a beta of 1.44.

Amazon.com (NASDAQ:AMZN) last released its quarterly 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 return on equity of 18.00% and a net margin of 17.44%.The business had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. During the same period last year, the business posted $1.68 earnings per share. The company’s quarterly revenue was up 19.6% on a year-over-year basis. As a group, equities research analysts expect that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Amazon.com news, VP Shelley Reynolds sold 2,343 shares of the business’s stock in a transaction on 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 Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the transaction, the senior vice president directly owned 41,190 shares of the company’s stock, valued at approximately $10,699,926.30. This trade represents 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. Insiders have sold 71,589 shares of company stock valued at $18,568,785 in the last 90 days. Company insiders own 8.90% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in AMZN. Trust Asset Management LLC increased its position in Amazon.com by 3.3% during the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock worth $26,000 after purchasing an additional 3,414 shares during the last quarter. TOP Private Wealth LLC. purchased a new position in shares of Amazon.com in the 2nd quarter worth $29,000. Bard Associates Inc. purchased a new stake in Amazon.com during the second quarter valued at about $32,000. Longfellow Investment Management Co. LLC purchased a new stake in shares of Amazon.com during the 2nd quarter worth about $33,000. Finally, MilWealth Group LLC lifted its position in Amazon.com by 79.0% during the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after buying an additional 79 shares in the last quarter. Hedge funds and other institutional investors own 72.20% of the company’s stock.

Amazon.com Company Profile

Amazon.com, Inc is a global technology and e-commerce company that operates online marketplaces and provides a broad range of consumer products and services. Its retail business sells merchandise directly to customers and enables third-party sellers to offer products through Amazon’s websites and applications. The company also operates physical stores and provides services such as digital content, subscriptions, and consumer devices, including Kindle and Echo products.

Amazon Web Services (AWS) provides cloud computing, storage, database, analytics, artificial intelligence, machine learning, and other technology services to businesses, governments, and organizations.