Key Points
- Amazon CEO Douglas Herrington sold 1,000 shares for $243,470 at an average price of $243.47 under a pre-arranged Rule 10b5-1 plan. He retained 473,681 shares after the sale.
- Amazon’s latest quarter fell slightly short of estimates: earnings were $1.89 per share versus $1.97 expected, and revenue was $201.94 billion versus $202.22 billion expected; revenue still grew 12.1% year over year.
- Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $321.74. The article also cites strong AWS growth and backlog as sources of optimism, while heavy AI-related investment is pressuring cash generation.
Amazon.com, Inc. (NASDAQ:AMZN - Get Free Report) CEO Douglas Herrington sold 1,000 shares of the firm's stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $243.47, for a total value of $243,470.00. Following the transaction, the chief executive officer directly owned 473,681 shares in the company, valued at approximately $115,327,113.07. This represents a 0.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Amazon.com Stock Performance
NASDAQ:AMZN opened at $266.31 on Thursday. The company has a market capitalization of $2.88 trillion, a price-to-earnings ratio of 21.53, a PEG ratio of 1.90 and a beta of 1.49. The business has a 50 day moving average of $253.90 and a 200 day moving average of $243.32. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.99 and a quick ratio of 0.82. Amazon.com, Inc. has a 1-year low of $196.00 and a 1-year high of $287.20.
Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The e-commerce giant reported $1.89 EPS for the quarter, missing analysts' consensus estimates of $1.97 by ($0.08). Amazon.com had a net margin of 16.90% and a return on equity of 15.72%. The business had revenue of $201.94 billion for the quarter, compared to the consensus estimate of $202.22 billion. During the same quarter in the previous year, the business earned $1.95 earnings per share. The firm's revenue was up 12.1% on a year-over-year basis. On average, sell-side analysts predict that Amazon.com, Inc. will post 7.80 earnings per share for the current fiscal year.
Institutional Inflows and Outflows
A number of hedge funds have recently bought and sold shares of the business. Trust Asset Management LLC raised its holdings in Amazon.com by 3.3% in 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 in the last quarter. TOP Private Wealth LLC. bought a new stake in shares of Amazon.com during the 2nd quarter valued at $29,000. Bard Associates Inc. purchased a new stake in Amazon.com in the second quarter worth about $32,000. Longfellow Investment Management Co. LLC bought a new position in shares of Amazon.com during the second quarter valued at approximately $33,000. Finally, Atomic Invest LLC lifted its holdings 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 valued at $40,000 after purchasing an additional 49 shares during the last quarter. Hedge funds and other institutional investors own 72.20% of the company's stock.
Key Stories Impacting Amazon.com
Here are the key news stories impacting Amazon.com this week:
- Positive Sentiment: AWS growth and demand are driving optimism. AWS revenue grew nearly 40% in the latest quarter, while its $578 billion backlog points to substantial future demand. Management expects AWS growth above 40% in 2027 and 2028, helping bolster the long-term AI and cloud outlook. Article: Amazon Has Erased Its Earnings Sell-Off, But Is the Biggest Opportunity Still Ahead?
- Positive Sentiment: Market conditions favored large technology companies. A post-election rally lifted Big Tech, with investors appearing less concerned that potential data-center restrictions would derail the largest cloud providers’ expansion plans. A reported cloud-capacity shortage may also give Amazon and peers room to raise prices. Article: Microsoft and Amazon combine for a $400 billion market-cap boost
- Positive Sentiment: Amazon is expanding Alexa shopping access. A new merchant workspace lets eligible sellers connect their stores to Alexa for Shopping and Amazon’s online properties, potentially broadening product selection and shopping engagement. Article: Amazon Offers Merchants New Connection to Alexa for Shopping
- Neutral Sentiment: Worldwide Amazon Stores CEO Douglas Herrington sold 1,000 shares under a pre-arranged Rule 10b5-1 plan, a small portion of his remaining holdings; the planned transaction is not necessarily a signal about the company’s outlook. SEC filing
- Negative Sentiment: AI investment is weighing on cash generation. Amazon’s roughly $220 billion spending plan is contributing to negative free cash flow, leaving investors focused on when infrastructure spending will produce returns. AI shopping agents could also challenge the advertising revenue and customer-data model used by Amazon and other retailers. Article: AI shopping agents could threaten Amazon and Walmart's ad business
Analyst Upgrades and Downgrades
A number of equities research analysts have recently issued reports on AMZN shares. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $330.00 price objective on shares of Amazon.com in a research note on Friday, October 30th. Mizuho lifted their target price on shares of Amazon.com from $330.00 to $335.00 and gave the stock an "outperform" rating in a research report on Friday, October 30th. BMO Capital Markets reissued an "outperform" rating on shares of Amazon.com in a research note on Tuesday, October 20th. UBS Group reissued a "buy" rating and issued a $348.00 price target (up from $318.00) on shares of Amazon.com in a research note on Monday, October 26th. Finally, Rosenblatt Securities restated a "buy" rating and set a $360.00 price target on shares of Amazon.com in a research report on Friday, October 30th. Two equities research analysts have rated the stock with a Strong Buy rating, fifty-five have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $321.74.
Get Our Latest Stock Analysis on Amazon.com
Amazon.com Company Profile
(
Get Free Report)
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.
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