Track market-moving stories before they get noisy

Pinnacle Wealth Management Advisory Group LLC grew its holdings in Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 16.3% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 92,464 shares of the e-commerce giant’s stock after buying an additional 12,981 shares during the quarter. Amazon.com makes up 1.3% of Pinnacle Wealth Management Advisory Group LLC’s portfolio, making the stock its 19th largest position. Pinnacle Wealth Management Advisory Group LLC’s holdings in Amazon.com were worth $21,038,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. NorthRock Partners LLC boosted its position in Amazon.com by 1.5% in the 2nd quarter. NorthRock Partners LLC now owns 131,565 shares of the e-commerce giant’s stock valued at $31,357,000 after buying an additional 1,884 shares during the last quarter. Integrated Wealth Concepts LLC raised its position in shares of Amazon.com by 18.2% during the second quarter. Integrated Wealth Concepts LLC now owns 622,392 shares of the e-commerce giant’s stock worth $141,885,000 after acquiring an additional 95,821 shares during the last quarter. Community Bank N.A. raised its position in shares of Amazon.com by 1.9% during the second quarter. Community Bank N.A. now owns 48,130 shares of the e-commerce giant’s stock worth $11,471,000 after acquiring an additional 887 shares during the last quarter. NewEdge Advisors LLC lifted its stake in shares of Amazon.com by 3.8% during the second quarter. NewEdge Advisors LLC now owns 2,181,828 shares of the e-commerce giant’s stock valued at $517,620,000 after acquiring an additional 79,751 shares during the period. Finally, Cypress Capital Management LLC WY lifted its stake in shares of Amazon.com by 4.7% during the second quarter. Cypress Capital Management LLC WY now owns 3,577 shares of the e-commerce giant’s stock valued at $853,000 after acquiring an additional 159 shares during the period. Institutional investors and hedge funds own 72.20% of the company’s stock.

Insider Transactions at Amazon.com In other Amazon.com news, SVP David Zapolsky sold 9,258 shares of the stock in a transaction on Monday, August 24th. The shares were sold at an average price of $259.77, for a total value of $2,404,950.66. Following the completion of the sale, the senior vice president owned 41,190 shares in the company, valued at $10,699,926.30. This trade represents a 18.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Garman sold 14,541 shares of Amazon.com stock in a transaction dated Friday, August 21st. The shares were 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 directly owned 17,794 shares of the company’s stock, valued at approximately $4,609,713.64. This trade represents a 44.97% decrease in their position. 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. Over the last 90 days, insiders sold 71,589 shares of company stock valued at $18,580,515. 8.90% of the stock is owned by insiders.

Key Stories Impacting Amazon.com Here are the key news stories impacting Amazon.com this week: Positive Sentiment: Analysts remain broadly bullish on Amazon, citing accelerating AWS growth, expanding AI-services revenue and potential upside from advertising, logistics and other businesses. One report noted that 58 analysts cover the stock without a sell rating. 58 Analysts, Zero Sells: Amazon’s Price Target Is a Rare Consensus Positive Sentiment: Amazon launched three higher-priced Alexa-branded tablets running Android with Google Play access, positioning the devices against Apple and Samsung while expanding Alexa+ and AI monetization opportunities. Amazon launches first Android tablets, raising prices and incorporating Alexa Positive Sentiment: Amazon’s AWS pricing team is using an AI chatbot to automate complex customer-deal analysis, illustrating how the company is applying AI internally to improve productivity and potentially margins. AWS pricing team turns Excel model into an AI chatbot Neutral Sentiment: Amazon is adding two China-to-U.S. air-freight services, which could improve inventory replenishment and peak-season execution, although the financial impact was not disclosed. Amazon launches two new China-to-U.S. air freight options Negative Sentiment: Investors are concerned that planned 2026 capital spending of roughly $220 billion on AI infrastructure could push free cash flow further negative before the investments generate sufficient returns. Rising Treasury yields and oil prices are also pressuring technology valuations. Amazon stock hits rare valuation lows Negative Sentiment: Amazon confirmed another round of reductions affecting fewer than 1,000 employees, primarily in its Stores division. The cuts may support efficiency but also signal restructuring pressure in the core e-commerce business. Amazon makes fresh job cuts, mainly in retail division Negative Sentiment: Amazon is blocking external AI shopping agents such as Meta’s Muse from accessing its marketplace. Critics argue the policy could encourage startups to develop competing shopping platforms and weaken Amazon’s role in agent-driven commerce. Why Amazon is making a big AI mistake Negative Sentiment: An FTC lawsuit alleges Amazon overcharged advertisers by more than $20 billion, adding regulatory and potential financial risks to the company’s advertising business. Amazon.com Price Performance NASDAQ AMZN opened at $254.06 on Friday. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. Amazon.com, Inc. has a 12-month low of $196.00 and a 12-month high of $287.20. The company has a market capitalization of $2.74 trillion, a PE ratio of 20.44, a price-to-earnings-growth ratio of 2.01 and a beta of 1.45. The firm’s 50 day moving average is $259.01 and its 200-day moving average is $249.79.

Amazon.com (NASDAQ:AMZN – Get Free Report) last announced its 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. The business had revenue of $200.61 billion during the quarter, compared to analysts’ expectations of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The firm’s revenue was up 19.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.68 earnings per share. Equities research analysts anticipate that Amazon.com, Inc. will post 8.03 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth AMZN has been the topic of several analyst reports. Sanford C. Bernstein restated an “outperform” rating and issued a $320.00 price objective (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. DA Davidson reaffirmed a “neutral” rating and set a $250.00 price objective on shares of Amazon.com in a research note on Friday, July 31st. HSBC restated a “buy” rating and set a $310.00 target price on shares of Amazon.com in a research report on Friday, July 31st. Weiss Ratings reiterated a “buy (b)” rating on shares of Amazon.com in a research report on Monday, August 3rd. Finally, TD Cowen restated a “buy” rating and set a $350.00 price objective on shares of Amazon.com in a report on Monday. Fifty-six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Amazon.com currently has a consensus rating of “Moderate Buy” and a consensus price target of $322.86.

Read Our Latest Research Report on AMZN

Amazon.com Company Profile (Free Report)

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.

Featured Stories Five stocks we like better than Amazon.com Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push

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Lotus Asset Management LLC purchased a new stake in Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 3,393 shares of the e-commerce giant’s stock, valued at approximately $809,000. Amazon.com makes up about 0.7% of Lotus Asset Management LLC’s investment portfolio, making the stock its 17th biggest holding.

A number of other large investors have also recently bought and sold shares of AMZN. Bank of America Corp DE acquired a new position in shares of Amazon.com during the 2nd quarter worth $22,218,775,000. Bank of New York Mellon Corp bought a new stake in Amazon.com during the 2nd quarter worth $16,341,405,000. Amundi increased its holdings in Amazon.com by 3.9% in the 2nd quarter. Amundi now owns 63,822,242 shares of the e-commerce giant’s stock worth $15,211,393,000 after purchasing an additional 2,421,739 shares in the last quarter. Invesco Ltd. raised its position in Amazon.com by 3.3% in the fourth quarter. Invesco Ltd. now owns 59,604,857 shares of the e-commerce giant’s stock valued at $13,757,993,000 after purchasing an additional 1,879,630 shares during the last quarter. Finally, Legal & General Group Plc acquired a new position in Amazon.com in the 2nd quarter valued at approximately $12,831,376,000. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades A number of research firms have weighed in on AMZN. HSBC reissued a “buy” rating and set a $310.00 target price on shares of Amazon.com in a research report on Friday, July 31st. Benchmark boosted their target price on Amazon.com from $370.00 to $400.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Tigress Financial reissued a “buy” rating and issued a $385.00 price target (up from $315.00) on shares of Amazon.com in a research report on Tuesday. Bank of America raised their price objective on Amazon.com from $310.00 to $320.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Finally, Wolfe Research reiterated an “outperform” rating and issued a $315.00 price objective on shares of Amazon.com in a research note on Friday, July 31st. Fifty-six research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $322.86.

Read Our Latest Stock Report on AMZN Amazon.com Stock Performance Shares of AMZN stock opened at $254.06 on Friday. The stock has a market capitalization of $2.74 trillion, a P/E ratio of 20.44, a PEG ratio of 2.01 and a beta of 1.45. 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 moving average is $259.01 and its 200 day moving average is $249.79. Amazon.com, Inc. has a 12 month low of $196.00 and a 12 month high of $287.20.

Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The business had revenue of $200.61 billion for the quarter, compared to analysts’ expectations of $197.03 billion. During the same quarter in the previous year, the firm posted $1.68 EPS. The business’s revenue for the quarter was up 19.6% compared to the same quarter last year. On average, sell-side analysts anticipate that Amazon.com, Inc. will post 8.03 earnings per share for the current year.

Insider Activity at Amazon.com In other Amazon.com news, CEO Douglas J. Herrington sold 6,362 shares of Amazon.com stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $1,647,821.62. Following the completion of the sale, the chief executive officer directly owned 476,681 shares in the company, valued at $123,465,145.81. The trade was a 1.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available 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 Amazon.com stock in a transaction 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 sale, 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 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 $18,580,515 in the last quarter. 8.90% of the stock is currently owned by company insiders.

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

Positive Sentiment: Analysts remain broadly bullish on Amazon, citing accelerating AWS growth, expanding AI-services revenue and potential upside from advertising, logistics and other businesses. One report noted that 58 analysts cover the stock without a sell rating. 58 Analysts, Zero Sells: Amazon’s Price Target Is a Rare Consensus Positive Sentiment: Amazon launched three higher-priced Alexa-branded tablets running Android with Google Play access, positioning the devices against Apple and Samsung while expanding Alexa+ and AI monetization opportunities. Amazon launches first Android tablets, raising prices and incorporating Alexa Positive Sentiment: Amazon’s AWS pricing team is using an AI chatbot to automate complex customer-deal analysis, illustrating how the company is applying AI internally to improve productivity and potentially margins. AWS pricing team turns Excel model into an AI chatbot Neutral Sentiment: Amazon is adding two China-to-U.S. air-freight services, which could improve inventory replenishment and peak-season execution, although the financial impact was not disclosed. Amazon launches two new China-to-U.S. air freight options Negative Sentiment: Investors are concerned that planned 2026 capital spending of roughly $220 billion on AI infrastructure could push free cash flow further negative before the investments generate sufficient returns. Rising Treasury yields and oil prices are also pressuring technology valuations. Amazon stock hits rare valuation lows Negative Sentiment: Amazon confirmed another round of reductions affecting fewer than 1,000 employees, primarily in its Stores division. The cuts may support efficiency but also signal restructuring pressure in the core e-commerce business. Amazon makes fresh job cuts, mainly in retail division Negative Sentiment: Amazon is blocking external AI shopping agents such as Meta’s Muse from accessing its marketplace. Critics argue the policy could encourage startups to develop competing shopping platforms and weaken Amazon’s role in agent-driven commerce. Why Amazon is making a big AI mistake Negative Sentiment: An FTC lawsuit alleges Amazon overcharged advertisers by more than $20 billion, adding regulatory and potential financial risks to the company’s advertising business. Amazon.com Profile (Free Report)

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.

Featured Articles Five stocks we like better than Amazon.com Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push Want to see what other hedge funds are holding AMZN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Amazon.com, Inc. (NASDAQ:AMZN – Free Report).

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Amazon barred Meta's Muse from its website, citing concerns about access to and storage of customer data. Bloomberg/Getty Images Paul Graham says he thinks Amazon is opening itself up to competitors.

In a Wednesday night X thread, Graham, the cofounder of tech VC firm Y Combinator, criticized Amazon's recent decision to block consumer AI agents from its platform.

It's the "first opportunity I've seen since Amazon was founded for a startup to create an Amazon competitor," he wrote.

"People will want agents to buy stuff for them. It will be one of the main use cases. And they won't want to use some Amazon-supplied agent to do it."

Amazon banning agents is the first opportunity I've seen since Amazon was founded for a startup to create an Amazon competitor. People will want agents to buy stuff for them. It will be one of the main use cases. And they won't want to use some Amazon-supplied agent to do it.

— Paul Graham (@paulg) October 8, 2026 SpaceX and Tesla CEO Elon Musk reposted the thread with a one-word endorsement: "Seriously."

Graham's post comes as Amazon clashes with Muse, Meta's consumer-focused AI agent that can complete multi-step tasks, like making purchases.

Amazon banned Muse from its marketplace, saying the agent didn't identify itself when shopping and appeared to capture and store customer credentials.

Meta has said Muse itself cannot see users' passwords or payment methods. The company says credentials a user shares are stored securely in Muse's dedicated cloud computer, rather than visible to the agent.

Graham's theory is that Amazon wouldn't bother blocking agents if shoppers didn't want to use them — but blocking the agents could come at Amazon's peril, he warned.

"Your usage restrictions are my opportunity."

The post also comes as AI companies are moving deeper into the consumer agent arena. In late September, OpenAI launched Dots, its Muse-like competitor. Amazon has not publicly said if it has blocked Dots.

Not everyone agrees with Graham. Imran Khan, the founder of investment management firm Proem Asset Management, wrote that Amazon likely believes that more agents shopping on their platform risks increasing costly returns and "completely mess up their unit economics."

Amazon is hardly sitting on the sidelines of the consumer AI race. It has its own shopping assistant, Rufus, and a "Buy for Me" feature that buys products from some outside brands.

Amazon didn't immediately respond to a request for comment from Business Insider.

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Ben Shimkus You're currently following this author! Click to unsubscribe from email alerts.

Ben Shimkus is a reporter for the Business News desk. He writes about cars, transportation, retail, and jobs. Ben's reporting has appeared in Rolling Stone, The Verge, Automotive News, USA Today, AutoBody News, LGBTQ Nation, TopSpeed, and Out Magazine. He's also held staff writing positions at The U.S. Sun and the Daily Mail. He graduated from NYU with a Master's in journalism in 2024. Email Ben at [email protected] or message him privately on Signal at bshimkus.41. 

Amazon

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Amazon founder Jeff Bezos introduced the Kindle Fire tablet in 2011. EMMANUEL DUNAND/AFP via Getty Images Goodbye, Amazon Fire tablets. You lasted longer than the Fire Phone.

After 15 years, the e-commerce giant is discontinuing its Fire tablets and replacing the budget-friendly devices with a new line of pricier tablets that have its Alexa+ voice assistant built in.

An Amazon spokesperson told Business Insider that the company will continue to sell through its current inventory of Fire tablets, but is no longer manufacturing new units with that branding.

The new Amazon Alexa Tablets, which run on Google's Android operating system and come with access to the Google Play Store, are now available for purchase and will ship on October 14 in the US, Mexico, and Canada.

Amazon's new line of Alexa tablets.  Amazon Amazon's aluminum-cased Alexa Tablet 12 Pro, Alexa Tablet 11, and Alexa Tablet 8 run from $229.99 to $499.99.

"The Alexa Tablets are a new product line built for what's next — they don't change anything about the experience Fire tablet owners have today," the Amazon spokesperson said. "Fire tablets remain their own product — fully supported, with continued security updates. Customers who love their Fire tablets can keep using them."

It's not the first time Amazon has moved on from a Fire-branded device. Its Fire Phone was a high-profile flop that Amazon founder Jeff Bezos later called a "tiny little blip."

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Natalie Musumeci You're currently following this author! Click to unsubscribe from email alerts.

Natalie is a senior reporter on Business Insider's Business News team covering the AI and data center boom.She was previously on BI's Legal Affairs team, where she handled major cases coming out of state and federal court, as well as bankruptcy. Her coverage often focused on stories at the intersection of law, business, politics, and technology. Natalie has covered Donald Trump’s criminal and civil cases, the wave of lawsuits against the second Trump administration, the indictment and criminal trial of Sean “Diddy” Combs, the shooting death of UnitedHealthcare CEO Brian Thompson, and the legal battles facing Elon Musk and his companies. Natalie came to Business Insider in June 2021 as a breaking news reporter, focusing on the most interesting angles on the day's trending news. Natalie largely drove BI’s coverage around the fatal “Rust” shooting involving Alec Baldwin and the disappearance and murder of Gabby Petito.Prior to joining BI, Natalie worked for the New York Post, the New York Daily News, and The Brooklyn Paper. She has an extensive background covering crime and courts. During her more than 12-year journalism career, she did a stint covering the police beat out of the New York Police Department's headquarters. Natalie, a Brooklyn native, graduated from Brooklyn College in 2012 with a degree in journalism. 

Amazon Technology Alexa More Jeff Bezos

Amazon.com Inc. (NASDAQ:AMZN) is heading into its third-quarter report with investors weighing strong Amazon Web Services expectations against pressure from higher AI spending, data-center investment and a weaker broader market setup.

Amazon shares fell nearly half a percent in Thursday trading as risk appetite weakened. Nasdaq futures dropped almost 1%, while S&P 500 futures declined 0.39%.

AWS Growth Sets a High BarBNP Paribas analyst Nick Jones expects Amazon to post broad-based strength, led by continued momentum at AWS.

Jones rates Amazon Outperform with a $355 price forecast, implying 39% upside from the cited $256.30 share price.

He believes investors are looking for AWS revenue growth of 43% to 45%, well above the 38% consensus estimate. Jones also sees operating income closer to $28 billion, compared with the $25.9 billion consensus.

Retail Business Tracks Near ExpectationsJones expects Amazon’s first-party and third-party retail revenue to remain roughly in line with consensus.

Online stores and third-party seller services are tracking toward about 5% year-over-year growth.

Fourth-Quarter Hurdle Remains HighFor the fourth quarter, Jones believes investors want the high end of Amazon’s guidance to reach $247 billion in revenue and $35 billion in operating income.

Those figures would top consensus estimates of $244 billion in revenue and $33 billion in operating income.

Jones also expects Amazon to raise its 2026 capital spending outlook by $5 billion to $10 billion as the company prepares for elevated investment in 2027.

Data-Center Returns Stay in FocusJones said investors remain focused on margins and returns from Amazon’s data-center investments as spending stays elevated. Despite those concerns, he continues to view Amazon’s current valuation as an attractive entry point.

Earnings and Analyst OutlookAmazon’s next earnings report is estimated for Oct. 29, 2026.

Analysts expect earnings of $1.95 per share, unchanged from a year earlier. Revenue is projected to rise to $202.04 billion from $180.17 billion.

The stock trades at a price-to-earnings ratio of 20.9.

Amazon carries a consensus Buy rating, with an average price forecast of $335. Recent analyst actions include:

Tigress Financial: Maintained Buy and raised its price forecast to $385 on Oct. 6. TD Cowen: Maintained Buy and a $350 price forecast on Oct. 5. Rosenblatt: Maintained Buy and raised its price forecast to $360 on Sept. 30. ETFs With Significant Amazon ExposureAmazon also holds sizable positions in several exchange-traded products, including:

First Trust Dow Jones Internet Index Fund (NYSE:FDN): 9.78% weighting. Eagle Capital Select Equity ETF (NYSE:EAGL): 8.71% weighting. MicroSectors FANG+ 3x Leveraged ETN (NYSE:FNGU): 9.76% weighting. Changes in investor demand for these products can influence trading activity in Amazon shares, although the impact depends on fund flows and portfolio rebalancing.

Price ActionAMZN Price Action: Amazon.com shares were trading 0.38% down at $258.92 at the time of publication on Thursday, according to Benzinga Pro data.

Image via Shutterstock

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© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

The latest cuts affect fewer than 1,000 corporate employees as Amazon continues reshaping its retail organization. Summary

They follow a broader round of 30,000 job cuts initiated over the past year.

Amazon.com Inc. (AMZN, Financials), the e-commerce and cloud computing behemoth, is trimming another wave of corporate jobs as it continues to recalibrate a workforce that ballooned during the epidemic.

The most recent cuts impact a few hundred white-collar staff, mostly inside Amazon's Stores group that runs the company's primary e-commerce business.

The cuts include sections of the retail operation, including as customer service, marketplace support, selling partner services and engineering. Employees in U.S., U.K. and India were impacted.

Amazon said it made changes in portions of the Stores division because the new structure would better serve its aims.

The layoffs are relatively tiny in comparison to the wider 30,000-job decrease that began over the last year, but they underscore Amazon's ongoing emphasis on efficiency.

The company's continuous work force changes are partially a reflection of how quickly Amazon employed during the epidemic when online shopping demand increased, said Executive Chairman Jeff Bezos.

The real concern for investors is not so much about the current 1,000 jobs, but whether periodic restructuring can make Amazon's sprawling retail business more effective without slowing growth or hurting customer experience.

The layoffs also landed amid Amazon's Prime Big Deal Days shopping extravaganza, placing the company's cost discipline in the spotlight alongside one of its key seasonal retail pushes.

The next catalyst will be Amazon's next set of financial reports, when investors may look for indications that continuing cost cuts are translating to improved retail profitability.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Arizona State Retirement System grew its holdings in shares of Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 5.0% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,766,561 shares of the e-commerce giant’s stock after buying an additional 130,523 shares during the quarter. Amazon.com accounts for approximately 3.2% of Arizona State Retirement System’s holdings, making the stock its 4th biggest holding. Arizona State Retirement System’s holdings in Amazon.com were worth $644,737,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Bank of America Corp DE bought a new stake in shares of Amazon.com in the 2nd quarter valued at approximately $22,218,775,000. Bank of New York Mellon Corp purchased a new position in shares of Amazon.com during the 2nd quarter worth about $16,341,405,000. Amundi boosted its stake in shares of Amazon.com by 3.9% during the 2nd quarter. Amundi now owns 63,822,242 shares of the e-commerce giant’s stock worth $15,211,393,000 after purchasing an additional 2,421,739 shares during the period. Invesco Ltd. grew its holdings in Amazon.com by 3.3% during the 4th quarter. Invesco Ltd. now owns 59,604,857 shares of the e-commerce giant’s stock valued at $13,757,993,000 after purchasing an additional 1,879,630 shares during the last quarter. Finally, Legal & General Group Plc bought a new stake in Amazon.com in the second quarter worth about $12,831,376,000. Institutional investors own 72.20% of the company’s stock.

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

Positive Sentiment: Analysts see AWS and Amazon’s AI services as major growth drivers. AWS sales reportedly rose 37% to $42.2 billion, while Amazon’s AI business surpassed a $25 billion annual revenue run rate. Analysts also view AI agents as potentially increasing commerce activity rather than undermining Amazon’s model. Amazon AI Boom Positive Sentiment: The FCC is preparing to vote on auctioning prime spectrum for satellite-to-smartphone services, a move that could benefit Amazon’s satellite ambitions and expand future connectivity opportunities. FCC Spectrum Auction Positive Sentiment: Prime Big Deal Days provides a near-term test of consumer demand and a potential boost to fourth-quarter retail sales. Amazon is also expanding Prime Video’s reach through a six-year global deal to stream the Emmy Awards free to viewers, supporting advertising and audience growth. Amazon Emmy Streaming Deal Positive Sentiment: ARK Invest reportedly purchased approximately $31 million of Amazon shares, adding a supportive institutional-investor signal. ARK Invest Buys Amazon Neutral Sentiment: A proposed structure involving roughly $8 billion of Nvidia chips could help Amazon finance AI infrastructure and preserve capital flexibility, but it also underscores the substantial cost and financing burden of the AWS expansion. Amazon Nvidia Chip Financing Negative Sentiment: Investors remain concerned that aggressive AI capital spending could pressure free cash flow before new data centers generate sufficient returns. Rising interest rates, power constraints and possible delays in infrastructure deployment add to the risk. Amazon Data Center Spending Risks Negative Sentiment: Prime Big Deal Days is occurring amid weak consumer confidence, creating uncertainty over the strength and profitability of promotional sales. Public attention to Amazon’s highly detailed customer profiles could also create privacy-related reputational risk. Amazon Customer Profiles Wall Street Analyst Weigh In A number of research analysts have recently commented on AMZN shares. Barclays reaffirmed an “overweight” rating and set a $365.00 target price (up from $330.00) on shares of Amazon.com in a research note on Friday, July 31st. Rosenblatt Securities upped their price target on shares of Amazon.com from $335.00 to $360.00 and gave the stock a “buy” rating in a report on Wednesday, September 30th. Phillip Securities downgraded shares of Amazon.com from a “strong-buy” rating to a “moderate buy” rating in a research note on Monday, August 3rd. Evercore set a $355.00 price objective on Amazon.com and gave the stock an “outperform” rating in a research note on Friday, August 28th. Finally, Jefferies Financial Group reiterated a “buy” rating on shares of Amazon.com in a report on Thursday, June 18th. Fifty-six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $322.86. Read Our Latest Stock Report on AMZN

Amazon.com Stock Up 1.4% Amazon.com stock opened at $259.92 on Thursday. Amazon.com, Inc. has a 1-year low of $196.00 and a 1-year high of $287.20. The business has a fifty day moving average price of $258.64 and a 200-day moving average price of $249.45. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. The stock has a market capitalization of $2.80 trillion, a price-to-earnings ratio of 20.91, a PEG ratio of 1.98 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN – Get Free Report) last announced its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating 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 company had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. During the same period in the prior year, the company posted $1.68 EPS. The firm’s quarterly revenue was up 19.6% compared to the same quarter last year. Equities research analysts forecast that Amazon.com, Inc. will post 8.03 EPS for the current fiscal year.

Insider Transactions at Amazon.com In related news, CEO Matthew S. Garman sold 14,541 shares of Amazon.com stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $259.06, for a total value of $3,766,991.46. Following the completion of the sale, the chief executive officer directly owned 17,794 shares in the company, valued at $4,609,713.64. This trade represents a 44.97% decrease in their position. The transaction was disclosed in a document filed 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 Herrington sold 6,362 shares of the firm’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 $1,647,821.62. Following the completion of the transaction, the chief executive officer directly owned 476,681 shares of the company’s stock, valued at approximately $123,465,145.81. This represents a 1.32% decrease in their position. 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 sold a total of 71,589 shares of company stock worth $18,580,515 over the last ninety days. 8.90% of the stock is currently owned by insiders.

About Amazon.com (Free Report)

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.

Further Reading Five stocks we like better than Amazon.com Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up

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Amazon (AMZN +1.42%) is one of the more recognizable stocks in the market, mainly because nearly everyone has used its services at one time or another. However, the market isn't in love with the stock right now, as it's down more than 10% from its all-time highs.

This is a bit suspect, as it reached a new all-time high the last time it reported quarterly earnings in late July. Nothing has changed between now and then, so it could be a case of the market taking profits and moving elsewhere. However, I think that's a huge mistake, as Amazon is right at the beginning of a new growth paradigm.

Image source: The Motley Fool.

Amazon's growth rate is only going to ramp up When you hear Amazon, the first thing you think of is its commerce and delivery platform. While that's the most consumer-facing portion of Amazon's business, it's far from the best reason to invest in it. Instead, I'd point to cloud computing and advertising as being the best reasons to pick the stock.

Cloud computing is a massive and growing portion of Amazon's business. During Q2, it accounted for about 21% of total sales but 60% of operating profits. AWS is a major beneficiary of the AI build-out, as AI firms and start-ups are looking for places to rent AI training and inference capacity, and Amazon has become a go-to vendor for many of these applications. It's the largest cloud computing provider and is investing $220 billion in capital expenditures this year to expand its footprint.

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However, that's not enough. AWS won't have enough demand to handle 2026 computing demands and likely won't again in 2027. As a result, demand for 2028 is already starting to pop up. That should show investors how in-demand cloud computing is, and with Amazon investing hundreds of billions in this segment, it will drive massive growth for the foreseeable future.

Another major segment that investors gloss over is Amazon's advertising segment. While it isn't as front-facing as AWS, as it's counted for in Amazon's commerce division, it is a major contributor. During Amazon's Q2, advertising grew at a 26% pace -- a rapid acceleration from previous quarters. Unfortunately, Amazon doesn't break out this segment's profitability, but looking at industry peers suggests it likely has a very healthy profit margin, which is why Amazon's commerce segment is as profitable as it is.

These two divisions are what really drive Amazon's future, and with each seeing its growth rate accelerate in the recent quarter, it's a positive sign for investors. However, the stock is down, which could be a great opportunity to scoop up some Amazon stock at a discount.

Amazon's stock isn't too expensive Amazon is a major investor in Anthropic, which has skewed its EPS metric, as it is required to report a gain on investment even if it doesn't sell its stake, making the price-to-earnings ratio misleading. So I'll go one line item up on the income statement and utilize its operating income to value the stock.

AMZN Operating PE Ratio data by YCharts

Amazon's price-to-operating-income ratio is among the lowest the stock has seen over the past two years, making it attractive. However, Amazon is about to enter one of its fastest-growing segments it has experienced over the past few years, so this price tag is actually far cheaper than it appears.

As a result, I think investors should take advantage of this sale price, as it may not last long once Amazon's Q3 results are out later this month.

The Federal Communications Commission said Wednesday it will vote on a proposal to auction 25 megahertz of "prime spectrum" to support "direct-to-device" services from satellites to smart phones.

The FCC, in a press release, also said it would vote Oct. 29 on taking public comment on a proposal to make an additional 482MHz of spectrum available for supplemental coverage from space and to modernize FCC rules for D2D services in the licensed spectrum.

The two proposals could benefit companies such as SpaceX and Amazon, which have moved to expand D2D services with satellite networks.

A third proposal to be voted on "would eliminate an outdated restriction that prevents drone operations in the 800 MHz Cellular band," the FCC said.

Amazon in July asked the FCC to approve the company launching up to 5,105 internet satellites as part of a constellation to provide direct-to-device connectivity. Amazon, in a filing that month, said it was targeting users who are "unserved or underserved" by existing wireless providers.

In August, Amazon said it would acquire Globalstar in a deal worth more than $11.5 billion to boost Amazon's Leo satellite internet business.

On Tuesday, the FCC's Space Bureau granted an application for SpaceX's new direct-to-cell system of 15,000 satellites.

"This constellation will use the spectrum SpaceX purchased from EchoStar earlier this year, which the FCC approved in a major win for the American space economy," the FCC said in the Wednesday press release.

"The 'direct-to-device' proposals work to continue leveraging this cutting-edge tech to end cell phone dead zones and provide service directly from next-gen satellite constellations to your smartphone," FCC Chairman Brendan Carr, said in a statement Wednesday. "And our final rules on drones further President Trump's call for drone dominance, providing the emerging American drone economy with usable spectrum to support the next generation of commercial and defense innovations."

SummaryAmazon.com, Inc. remains a Strong Buy as AWS demand outpaces supply, with 2027 capacity largely reserved and recent price hikes boosting profitability.AMZN's $98 billion in new debt funds both data center expansion and major stakes in Anthropic and OpenAI, with interest expenses rising but still manageable relative to operating profit.The real Q3 profit bar is $21.7 billion, not $17.4 billion, due to prior-year one-offs; I expect AMZN to potentially exceed the top end of guidance.Key risks include heavy AWS backlog concentration in Anthropic and OpenAI, but even a significant stumble would not materially alter my bullish stance. HJBC/iStock Editorial via Getty Images

Back in August, I wrote that Amazon.com, Inc. (AMZN) owns something most companies would love to have, which is a stake in Anthropic large enough to help pay for its data centers without

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Amazon is spending $200 billion in a single year to dominate cloud infrastructure, but its free cash flow just turned negative and its stock has slipped 8% from its post-earnings peak. The data centers being built today will not produce…

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Amazon (NASDAQ:AMZN | AMZN Price Prediction) trades at $251.40. The stock has given back part of its post-earnings rally even though AWS is growing at its fastest pace in 18 quarters.

Amazon runs the world’s largest e-commerce operation and the leading cloud platform, and it is spending at a record pace to stay on top. Management plans roughly $200 billion in capex this year. Alongside that expansion came the “Built Together” push: a $1 billion investment in AWS Forward Deployed Engineering, with early customers including the NFL, NBA and Southwest Airlines (NYSE:LUV). Shares rose to $274.48 a week after the report, then slid back.

AWS Acceleration Gives Bulls a Record Backlog to Point To AWS revenue rose 36.7% to $42.2 billion, with a 39.4% operating margin. Backlog hit $496 billion. The AI and chips businesses each run above $25 billion annually with triple-digit growth. OpenAI committed about 2 GW of Trainium capacity, and Anthropic will secure up to 5 GW.

Demand is already locked in. The CEO said the lion’s share of 2027 capacity is reserved, and servers break even in a little under three years on contracts of at least five years. Analysts back it: 58 rate it Buy.

Negative Free Cash Flow Shows Where the Push Is Straining The spending has exceeded the cash. Trailing free cash flow turned negative at -$7.6 billion after quarterly capex of $54.21 billion, up 68.4%. The company’s long-term debt reached $119.1 billion, up from $65.6 billion. The free cash flow yield is a thin 0.28%.

Earnings quality is unclear too. GAAP EPS of $5.75 leaned on a $53.4 billion Anthropic gain, while comparable EPS was $1.88. Management never mentioned Forward Deployed Engineering on the earnings call, and memory, hard drive and SSD inflation is pressuring costs. Sentiment has slid 6.21 points in 30 days.

Capacity Timing Decides Who Wins This Argument The CEO admitted data center capital goes out two years before servers start making. That leaves a gap between spending and revenue. Profits are still growing: operating income rose 43.2%, so the bear case has limits. Negative cash flow caps the upside too.

It would take three things to settle this: Q3 operating income against guidance of $22.5 billion to $26.5 billion, steady AWS margins, and early revenue from Forward Deployed Engineering customers.

Shares Lag the Market Since Their Post-Earnings Peak Despite a 31% Target Gap The average analyst target of $330.59 implies 31.5% upside. That target comes from 60 rated analysts, and targets carry no guarantee:

Buy: 58 Hold: 2 The stock trades at about 35 times earnings and is up 8.92% year to date. Since the Q2 report, it has gained 9.3% while the S&P 500 rose 3.7%. Since its post-earnings peak, though, Amazon has fallen 8.4% while the S&P 500 added 0.2%.

Data Center Cash Flow Is the Test Investors Cannot Ignore At $251.40, Amazon’s case depends on cash flow.

The business is strong and the cash flow is weak. The upside improves if Q3 operating income lands near the top of guidance and AWS margins hold near 39% despite component inflation. The downside improves if capex goes well beyond $200 billion while AWS growth stalls. Market-implied probability of 2026 capex topping $210 billion stands at 71%.

Each quarter, compare capex with operating cash flow, which was $45.39 billion last quarter. Track how Amazon reports the backlog, and look for any revenue tied to Forward Deployed Engineering. The market has already reduced much of the post-earnings premium. The current price assumes capacity due online through 2027 will be fully used (a free report on seven AI infrastructure names covers the power, cooling, and networking suppliers feeding that expansion, here).

Watch whether the data centers Amazon is paying for start producing cash.

Contact [email protected] for any questions or corrections.

Investors have rushed to get in on artificial intelligence (AI) stocks over the past few years as they've identified AI as the next big thing in technology. AI is exciting as it helps companies streamline processes, lower costs, make better decisions, and so much more. This is why some see it as a true revolution. Jensen Huang, chief of AI leader Nvidia, has even likened it to the Industrial Revolution, saying it will reshape the job market as that period once did.

This year, AI stocks have met with some headwinds, from concerns about the pace of AI infrastructure spending to general worries about the economy. And that has weighed on the performance of some. Still, the overall industry and the S&P 500 have been on the rise, and demand for AI products and services remains high. Analysts expect the AI market to reach into the trillions of dollars in a few years, suggesting there is still plenty of growth to come.

Now, looking ahead, if I could only buy one AI stock before 2027, I know exactly which one to choose. It would be the following...

Image source: Getty Images.

I already own this stock, but I would buy more This particular stock is one I already own, but today, I would be happy to increase my position. I like this company because it is a leader in two booming markets, has an established track record of earnings growth, and could see a new burst of growth moving forward due to its strength in AI. The company I'm talking about is Amazon (AMZN -0.05%), a significant player in the e-commerce and cloud computing markets.

Amazon has generated earnings growth over time due to these businesses and has a track record of benefiting from its investments, as we can see through its return on invested capital.

AMZN Revenue (Annual) data by YCharts

The company's e-commerce business has a solid moat, and this includes its vast fulfillment network, its extensive Prime subscription program, and its brand strength. Meanwhile, Amazon has been a major winner in the AI market, benefiting in two ways. First, the company has applied AI to its e-commerce operations to gain efficiency -- for example, choosing the fastest delivery routes -- and that has helped reduce its cost to serve. The e-commerce business also uses AI to help customers shop, something that is leading to more purchases.

Second, Amazon is developing AI chips and platforms and providing those, as well as the AI products of others, through its Amazon Web Services (AWS) business. AWS is the world's cloud services leader, positioning it perfectly to benefit as companies begin to apply AI more frequently to their operations.

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A trillion-dollar business down the road AWS already is seeing tremendous growth, with the annual revenue run rate recently reaching $169 billion, and Amazon chief Andy Jassy said during the latest earnings call that he expects AWS to eventually generate trillion-dollar revenue as more business moves to the cloud. This doesn't seem like an exaggerated prediction if we look at the depth of AWS' offerings, from non-AI solutions to AI solutions -- and Amazon's venture into chips, particularly to suit the cost-conscious customer, has been a winning one. The custom chips business recently reached a more than $25 billion annual revenue run rate, and demand is soaring.

All of this is great -- but why does it make Amazon my favorite AI buy?

This stock is a fantastic option for a broad range of investors, from cautious to aggressive, because it offers the safety of a well-established e-commerce business and a cloud business that doesn't uniquely rely on AI customers. In fact, demand for non-AI services is soaring, the company said recently. To please the aggressive investor, Amazon's leadership in cloud should usher in a new wave of revenue growth as the use of AI increases in the years to come. This makes Amazon the one stock I would buy before 2027 -- to benefit from a monster business developed over time, as well as the enormous potential of AI in the years to come.

Amazon.com Inc. (NASDAQ:AMZN) is trending Monday after reports that the company is seeking to offload about $8 billion of advanced Nvidia chips to outside investors.

Amazon stock is holding steady today. What should traders watch with AMZN? According to the Financial Times, as relayed by Investing.com, Amazon held talks with investors in recent weeks to gauge interest in a deal in which it would move thousands of Nvidia Grace Blackwell chips into a special purpose vehicle. Amazon would then lease the chips, which are installed in data centers across the U.S., back from the vehicle, which would tap outside investors through debt issuance.

The FT reported that Amazon plans to offer outside investors an equity stake of up to 10% in the vehicle, with Amazon retaining no ownership interest itself. The move is aimed at strengthening Amazon’s balance sheet by shifting expensive chip costs to investors and adopting a more asset-light approach.

The structure reflects a broader push among U.S. hyperscalers to find less balance-sheet-heavy ways to finance their massive data center buildouts, since a bulk of data center costs come from the advanced chips used to train AI models. Amazon has said it will spend more than $200 billion in capital expenditures this year, with a bulk going to its Amazon Web Services cloud unit to buy more chips and build more data centers.

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Amazon Shares Trade FlatAMZN Price Action: At the time of publication, Amazon shares are trading 0.07% lower at $251.70, according to data from Benzinga Pro.

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Angeles Wealth Management LLC lifted its stake in Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 18.7% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 118,524 shares of the e-commerce giant’s stock after purchasing an additional 18,648 shares during the period. Amazon.com accounts for about 1.1% of Angeles Wealth Management LLC’s investment portfolio, making the stock its 15th biggest holding. Angeles Wealth Management LLC’s holdings in Amazon.com were worth $28,249,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also recently modified their holdings of the company. Silvant Capital Management LLC purchased a new stake in Amazon.com in the 2nd quarter worth $60,065,000. Public Employees Retirement System of Ohio purchased a new position in shares of Amazon.com during the second quarter valued at about $909,868,000. Northstar Financial Companies Inc. bought a new stake in shares of Amazon.com in the second quarter worth about $3,376,000. Gryphon Financial Partners LLC increased its holdings in shares of Amazon.com by 7.5% in the first quarter. Gryphon Financial Partners LLC now owns 73,085 shares of the e-commerce giant’s stock worth $15,221,000 after purchasing an additional 5,125 shares during the last quarter. Finally, First Citizens Bank & Trust Co. increased its holdings in shares of Amazon.com by 1.7% in the first quarter. First Citizens Bank & Trust Co. now owns 303,862 shares of the e-commerce giant’s stock worth $63,285,000 after purchasing an additional 5,104 shares during the last quarter. Institutional investors own 72.20% of the company’s stock.

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

Positive Sentiment: AWS data-center push received support: Amazon Web Services pledged more than $1 billion over five years for communities hosting its U.S. data centers, including job training, education and infrastructure initiatives. The investment is intended to ease resistance to new facilities and help Amazon secure capacity for AI workloads. Amazon to invest $1 billion over five years in US data center communities Positive Sentiment: AI and AWS growth remain the main bullish catalyst: Reports highlighted AWS’s rapid expansion, a more than $1 billion Synopsys agreement supporting custom-chip development, and Anthropic’s expected long-term AWS commitments of roughly $110 billion. Amazon also launched an AI agent that audits customers’ cloud environments, potentially increasing AWS usage while improving customer cost, security and performance management. Amazon Is Both Landlord And Shareholder In Anthropic’s Giant Cloud Bet Positive Sentiment: Analyst confidence provided additional support: Goldman Sachs added Amazon to its conviction list, while New Street raised its price target to $385 and maintained a Buy rating. Analysts cited AWS growth, generative AI exposure and potential retail-margin improvement as reasons for longer-term upside. New Street Adjusts Price Target on Amazon.com to $385 Neutral Sentiment: Amazon is reportedly exploring an $8 billion chip sale-and-leaseback: Moving Nvidia AI chips to an investment vehicle could make the balance sheet more asset-light and help fund capital spending, but it also underscores the scale of Amazon’s AI infrastructure costs and financing requirements. Amazon seeks to offload $8 billion of Nvidia chips Negative Sentiment: Investors face profitability and regulatory risks: Analysts questioned how much AWS earnings are distorted by unrealized Anthropic investment gains, while surging AI capital expenditures could pressure free cash flow. Potential tougher EU cloud rules, data-center opposition, warehouse labor actions and Prime-related settlement payments add further uncertainty. What Are Amazon Investors Paying for AWS Without Investment Gains? Analyst Ratings Changes A number of equities analysts recently commented on the company. Needham & Company LLC reissued a “buy” rating and set a $300.00 price target on shares of Amazon.com in a research note on Friday, July 31st. Pivotal Research reaffirmed a “buy” rating and issued a $333.00 price objective (up from $320.00) on shares of Amazon.com in a research note on Friday, July 31st. JPMorgan Chase & Co. upped their price objective on Amazon.com from $330.00 to $365.00 and gave the stock an “overweight” rating in a report on Friday, July 31st. Mizuho set a $330.00 target price on Amazon.com and gave the company an “outperform” rating in a research report on Friday, July 31st. Finally, Royal Bank Of Canada raised their target price on shares of Amazon.com from $320.00 to $330.00 and gave the company an “outperform” rating in a report on Friday, July 31st. Fifty-six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $321.63. Check Out Our Latest Report on AMZN

Amazon.com Price Performance Shares of Amazon.com stock opened at $251.52 on Monday. The stock has a market cap of $2.71 trillion, a price-to-earnings ratio of 20.23, a price-to-earnings-growth ratio of 1.95 and a beta of 1.45. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03. The stock has a 50 day moving average price of $257.06 and a 200-day moving average price of $248.51. Amazon.com, Inc. has a one year low of $196.00 and a one year high of $287.20.

Amazon.com (NASDAQ:AMZN – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating 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 company had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. During the same quarter in the prior year, the firm posted $1.68 EPS. Amazon.com’s quarterly revenue was up 19.6% compared to the same quarter last year. Equities analysts expect that Amazon.com, Inc. will post 8.01 EPS for the current year.

Insider Buying and Selling In other news, SVP David Zapolsky sold 9,258 shares of the company’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 owned 41,190 shares of the company’s stock, valued at approximately $10,699,926.30. This represents a 18.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,343 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $606,860.43. Following the completion of the sale, the vice president 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. 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 sold a total of 70,589 shares of company stock worth $18,329,015 over the last three months. 8.90% of the stock is currently owned by company insiders.

Amazon.com Company Profile (Free Report)

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.

See Also Five stocks we like better than Amazon.com Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning?

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Amazon just pledged over a billion dollars near its data centers without purchasing a single piece of hardware, and the reason reveals a threat to its $496 billion backlog that no amount of chips can solve.

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Headline Number: $1 Billion for the Neighbors On October 2, 2026, Amazon (NASDAQ:AMZN | AMZN Price Prediction) attached a dollar figure to something no chip plant can make: permission to build. Amazon Web Services committed more than $1 billion over the next five years to the communities around its U.S. data centers. The spending flows through a program called Built Together. The money goes to job training, water preservation and energy affordability. Those are the same three complaints that fill council meetings whenever a new server farm is proposed. None of it buys a GPU.

The pledge comes as local pushback grows. Amazon says more than 100 data center moratoriums are under consideration across the country. AWS chief executive Matt Garman announced the program in a post that compared data center construction to the building of the interstate highway system. He warned that if those bans pass, “the US could be writing its own losing ticket to this race, and the consequences would last generations.”

What It Means for the AWS Buildout Amazon is, in effect, buying community acceptance, and its own economics explain why. Capital expenditures reached $54.21 billion in Q2 alone, up 68.44% year over year. The community pledge is a small line item spread over five years, and its purpose is to protect that much larger capital spending.

Timing is what makes local opposition expensive. Chief Executive Andy Jassy spoke on July 30. On the earnings call, he said “data center capital is spent starting two years before we can put servers into them to start monetizing.” Once a facility opens, Amazon can earn from it for 30-plus years. If a bans stalls a site in its first year, the money spent so far earns nothing while the project waits.

The demand is already committed. AWS backlog was at $496 billion, growing triple digits year over year. Management said most of the AWS capacity planned for 2027 is already reserved. Most AI capacity is signed for at least five-year terms. Each of those contracts needs a building, a grid connection and a town willing to host it.

Residents’ concerns rest on data. After 15 years of nearly flat use, U.S. electricity demand has grown 2.1% per year on average over the last five years. The federal Energy Information Administration lists data center server energy use as a major factor in demand going forward. The average individual data center load doubled from 150 to 300 megawatts between 2023 and 2024. The energy affordability part of Built Together addresses directly to that pressure.

This is also Amazon’s third recent $1 billion commitment that goes to something other than chips. In Q2, Amazon announced a $1 billion investment in AWS Forward Deployed Engineering, with early customers including the NBA, NFL, and Southwest Airlines (NYSE:LUV). It also committed up to $1 billion in cloud credits to help the U.S. Intelligence Community move to the cloud.

How Shares Responded to the $1 Billion Pledge On the day of the announcement, shares closed at $251.52, up 1.33% from $248.23 in a single session. The stock is up 8.97% year to date and down 1.36% over the past month. Recent coverage has focused on competitive concerns, which Barron’s described as “overstated”.

Bull Case For Amazon, the limit on growth is how fast it can add capacity, and each new site needs local approval. AWS revenue reached $42.23 billion in Q2, up 37%, its fastest growth in 18 quarters. The unit’s operating margin was 39.4%. Amazon’s AI and chips businesses each passed $25 billion annual run rates, and each is growing at triple-digit rates. Amazon Bedrock customers spent more in Q2 than all prior quarters combined.

Amazon also has the cash to keep the program going. Operating cash flow reached $45.39 billion in the quarter, up 39.59%. Management remains on track to double its power capacity by the end of 2027 versus 2025. Jassy discussed AWS. He said the unit could “very possibly be a trillion-dollar annual revenue business for us in time.” The main risk remains cash generation: trailing free cash flow is -$7.6 billion, and the pledge adds another cost. Still, keeping sites on schedule protects a $496 billion backlog.

What Amazon’s Next Earnings Report Must Show Built Together turns local approval into a budgeted cost of doing business, much like land or power. Amazon’s next quarterly report will be measured against guidance of $197.0 billion to $202.0 billion in net sales and $22.5 billion to $26.5 billion in operating income. That compares with $17.4 billion a year earlier. Investors should watch whether AWS growth holds up as new sites come online, and if the pledge keeps those sites on schedule, $1 billion in community spending will have protected hundreds of billions in signed revenue.

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denkapparat Operations GmbH purchased a new position in shares of Amazon.com, Inc. (NASDAQ:AMZN – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 2,192 shares of the e-commerce giant’s stock, valued at approximately $522,000.

Other institutional investors also recently added to or reduced their stakes in the company. TD Waterhouse Canada Inc. grew its holdings in shares of Amazon.com by 2.2% during the second quarter. TD Waterhouse Canada Inc. now owns 2,257,562 shares of the e-commerce giant’s stock worth $545,870,000 after purchasing an additional 49,075 shares during the last quarter. Premier Path Wealth Partners LLC lifted its stake in Amazon.com by 3.1% in the second quarter. Premier Path Wealth Partners LLC now owns 73,878 shares of the e-commerce giant’s stock valued at $17,608,000 after buying an additional 2,245 shares during the last quarter. Kickstand Ventures LLC. acquired a new stake in shares of Amazon.com in the second quarter valued at approximately $200,000. Werlinich Asset Management LLC boosted its holdings in shares of Amazon.com by 0.7% in the second quarter. Werlinich Asset Management LLC now owns 6,945 shares of the e-commerce giant’s stock valued at $1,655,000 after acquiring an additional 50 shares during the period. Finally, Prosperitas Financial LLC grew its position in shares of Amazon.com by 4.6% during the second quarter. Prosperitas Financial LLC now owns 44,696 shares of the e-commerce giant’s stock worth $10,653,000 after acquiring an additional 1,955 shares during the last quarter. Hedge funds and other institutional investors own 72.20% of the company’s stock.

Analysts Set New Price Targets A number of equities analysts have recently commented on the stock. DA Davidson reaffirmed a “neutral” rating and issued a $250.00 target price on shares of Amazon.com in a report on Friday, July 31st. Monness Crespi & Hardt increased their price objective on Amazon.com from $315.00 to $330.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. TD Cowen reiterated a “buy” rating and issued a $350.00 target price (up from $340.00) on shares of Amazon.com in a research note on Friday, July 31st. Truist Financial boosted their target price on Amazon.com from $320.00 to $350.00 and gave the company a “buy” rating in a report on Friday, July 31st. Finally, Morgan Stanley restated an “overweight” rating and set a $335.00 price target (up from $330.00) on shares of Amazon.com in a research note on Friday, July 31st. Fifty-six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Amazon.com presently has a consensus rating of “Moderate Buy” and an average target price of $321.63.

Check Out Our Latest Stock Analysis on Amazon.com Amazon.com Stock Performance Amazon.com stock opened at $251.52 on Friday. Amazon.com, Inc. has a fifty-two week low of $196.00 and a fifty-two week high of $287.20. The company has a market capitalization of $2.71 trillion, a price-to-earnings ratio of 20.23, a PEG ratio of 1.92 and a beta of 1.45. The stock has a fifty day moving average of $257.06 and a two-hundred day moving average of $248.25. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03.

Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.82 by $3.93. The business had revenue of $200.61 billion for the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The business’s revenue was up 19.6% on a year-over-year basis. During the same period in the prior year, the business earned $1.68 earnings per share. On average, analysts anticipate that Amazon.com, Inc. will post 8.01 EPS for the current fiscal year.

Insider Transactions at Amazon.com In other Amazon.com news, SVP David Zapolsky sold 9,258 shares of the company’s stock in a transaction dated Monday, August 24th. The shares were 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 in the company, valued at approximately $10,699,926.30. This represents a 18.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Jassy sold 20,000 shares of the firm’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 $5,180,200.00. Following the sale, the chief executive officer directly owned 2,235,766 shares in the company, valued at $579,085,751.66. This represents a 0.89% decrease in their ownership of the stock. 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 a total of 70,589 shares of company stock worth $18,329,015 in the last ninety days. Company insiders own 8.90% of the company’s stock.

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

Positive Sentiment: AWS data-center push received support: Amazon Web Services pledged more than $1 billion over five years for communities hosting its U.S. data centers, including job training, education and infrastructure initiatives. The investment is intended to ease resistance to new facilities and help Amazon secure capacity for AI workloads. Amazon to invest $1 billion over five years in US data center communities Positive Sentiment: AI and AWS growth remain the main bullish catalyst: Reports highlighted AWS’s rapid expansion, a more than $1 billion Synopsys agreement supporting custom-chip development, and Anthropic’s expected long-term AWS commitments of roughly $110 billion. Amazon also launched an AI agent that audits customers’ cloud environments, potentially increasing AWS usage while improving customer cost, security and performance management. Amazon Is Both Landlord And Shareholder In Anthropic’s Giant Cloud Bet Positive Sentiment: Analyst confidence provided additional support: Goldman Sachs added Amazon to its conviction list, while New Street raised its price target to $385 and maintained a Buy rating. Analysts cited AWS growth, generative AI exposure and potential retail-margin improvement as reasons for longer-term upside. New Street Adjusts Price Target on Amazon.com to $385 Neutral Sentiment: Amazon is reportedly exploring an $8 billion chip sale-and-leaseback: Moving Nvidia AI chips to an investment vehicle could make the balance sheet more asset-light and help fund capital spending, but it also underscores the scale of Amazon’s AI infrastructure costs and financing requirements. Amazon seeks to offload $8 billion of Nvidia chips Negative Sentiment: Investors face profitability and regulatory risks: Analysts questioned how much AWS earnings are distorted by unrealized Anthropic investment gains, while surging AI capital expenditures could pressure free cash flow. Potential tougher EU cloud rules, data-center opposition, warehouse labor actions and Prime-related settlement payments add further uncertainty. What Are Amazon Investors Paying for AWS Without Investment Gains? Amazon.com Profile (Free Report)

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.

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Amazon and Alphabet both booked staggering Anthropic gains last quarter, yet the two hyperscalers are playing completely different games with the AI company heading toward a public listing.

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In their second-quarter reports, Amazon (NASDAQ:AMZN | AMZN Price Prediction) and Alphabet (NASDAQ:GOOGL) both booked huge Anthropic gains. Amazon recorded a $53.4 billion non-operating gain, mostly from Anthropic. Alphabet logged $99 billion in unrealized equity gains. Anthropic targets a late-2026 window for its IPO. A listing would benefit each company in different ways.

Trainium Drives AWS While Gemini Drives Google Cloud AWS revenue reached $42.2 billion, up 36.7%, its fastest growth in 18 quarters. CEO Andy Jassy called Anthropic and OpenAI “the two leading AI labs in the world” and said both have made multi-year, multi-gigawatt commitments to Trainium. Project Rainier runs on more than 500,000 Trainium2 chips for training Claude. The commitment ties Anthropic closely to AWS infrastructure.

Google Cloud grew 82% to $24.77 billion. Anthropic runs workloads on Google TPUs, yet Sundar Pichai promoted Gemini, mentioning that nearly 90% of the Fortune 100 use Gemini Enterprise. Google launched Gemini 4 Argon, a model competing directly with Claude.

Anthropic Lens Amazon Alphabet Q2 Equity Gain $53.4B, mostly Anthropic $99.03B, includes Anthropic Compute Tie Trainium, up to 5 GW committed TPU workloads Claude Relationship Hosts Claude Opus 5 on Bedrock Gemini competes head-on Amazon Is Anthropic’s Partner. Alphabet Also Competes With It. Amazon’s chip business has passed a $25 billion run rate and is growing at triple-digit rates. Anthropic is a major proof point for Trainium. Jassy noted there is “a real chance” Amazon will sell Trainium chips outside AWS, and a successful Anthropic IPO would strengthen that sales pitch.

Alphabet’s balance sheet faces pressure. It raised $49.6 billion in equity and suspended buybacks. Long-term debt rose from $46.5 billion to $98.2 billion. A public Anthropic stake would give Alphabet an asset it could eventually sell.

Anthropic’s Public Valuation Could Move Both Earnings Reports A public price will set a new value for both stakes. Watch whether Anthropic shifts more compute toward TPUs as it grows, and monitor cash burn. Amazon’s trailing free cash flow was -$7.6 billion, and Alphabet’s quarterly figure was -$5.86 billion. IPO gains are paper gains. Data centers are paid for in cash, and the power, cooling, and networking suppliers behind that expansion are a trade of their own (we covered seven of them in a free AI infrastructure report).

Amazon Holds the Deeper Anthropic Link Investors Can’t Ignore Amazon benefits twice: through the equity mark and through years of contracted Trainium demand. Jassy said the “lion’s share of capacity in 27” is already reserved, with Anthropic accounting for a large part. Alphabet has the bigger paper gain and stronger stock performance, up 38.47% over the past year versus Amazon’s 12.51%. That makes Alphabet the broader AI story and Amazon the company with more direct Anthropic exposure.

Contact [email protected] for any questions or corrections.

Amazon (AMZN.O) is seeking to offload about $8 billion of advanced ​Nvidia (NVDA.O) chips to investors through a new ‌vehicle to strengthen its balance sheet, the Financial Times reported on Friday, citing people familiar with the matter.

In ​recent weeks, Amazon has held talks with ​investors to gauge interest in the deal ⁠that would move thousands of Grace Blackwell chips ​it is installing in US data centres into ​a special-purpose vehicle, the report said.

The cloud giant will then lease the advanced AI chips back from the ​SPV, which would tap outside investors through debt ​issuance, the FT said, adding that the company could adopt ‌a ⁠more asset-light approach to its balance sheet by unloading the expensive semiconductors to investors.

Amazon plans to offer an equity stake of up to ​10% in the ​vehicle, the ⁠newspaper said.

The chips in the proposed deal were bought or leased ​by Amazon. They are installed in more ​than ⁠a dozen US data centres across five states, including Nevada and Virginia, the report said.

Amazon and ⁠Nvidia ​did not immediately respond to ​Reuters for comment outside regular business hours.

The truth is, in the long run, you'd probably be just fine with any of them. If you've only got room in your portfolio right now for one new position among "Magnificent Seven" members Alphabet (GOOG -1.50%)(GOOGL -1.44%), Amazon (AMZN -0.14%), and Microsoft (MSFT +0.60%), however, it should arguably be Google parent Alphabet. Here's why.

Why not Microsoft or Amazon? If you already hold stakes in Amazon or Microsoft, you're hardly doomed. Microsoft remains the centerpiece of the personal and professional computing business, and Amazon is still the king of e-commerce as well as the leader in the cloud computing market.

In a valuation environment that leaves no room for error or weakness, however, those two bring company-specific concerns to the table that could turn into stumbling blocks.

Image source: Getty Images.

For Microsoft, the key concern is its waning relevancy within the workplace, or for that matter, at home. Although its productivity software titles like Word and Excel are still popular enough, Microsoft Office's dominance in the basic enterprise software arena continues to wane. It's ceding ground to Google Workspace, which is increasingly seen as less restrictive to use.

The company's also losing ground on the chat-based AI assistant front. Sure, Microsoft recently touted the fact that its Copilot app serves 30 million paying Microsoft 365 Copilot customers.

Yet take a look at the details. While this professional version of Copilot integrates nicely into the cloud-based/subscription-based version of Microsoft Office 365, the AI tool isn't necessarily being sought out by users. Rather, many of these subscribers are being added to existing Office 365 subscriptions, whether those subscribers asked for it or not (very likely at nominal additional costs). And it's still tethered to productivity software that's slowly losing market share. Meanwhile, the free-to-use consumer-facing version of Copilot only accounts for about 3% of the AI chatbot market while ChatGPT boasts a commanding share of 79%, according to data from Statcounter.

Statcounter adds that Microsoft's flagship operating system, Windows, is also losing ground. It slid to a record low market share of 63% in August thanks to soaring use of Apple's OS and even open-source Linux, both of which reached record market shares that month. In this vein, Microsoft has now reported two consecutive quarterly declines in Windows' revenue.

Connect the dots. It's not doing anything "wrong," per se. Microsoft's cloud business appears to be thriving, in fact, with revenues up 27% year over year a quarter ago, thanks to AI-driven demand. The company's just running into headwinds on too many other fronts -- even its video gaming arm, which suffered a 10% slump in revenue for the quarter ending in June.

As for Amazon, the worry is simpler and far more straightforward. It's planning on spending an enormous sum on capital investments this year -- mostly on AI infrastructure -- with no assurance that this capex will curb the deterioration in its share of the cloud computing market. Though it's on pace to shell out $220 billion on capital expenditures in fiscal 2026, numbers from Synergy Research Group indicate Amazon Web Services' market share has continued shrinking from 2020's peak of 34% to 28% as of Q2 of this year. Microsoft Azure has also been sliding, by the way. Meanwhile, third-place Google Cloud has been gaining share. 

Data source: Synergy Research Group. Chart by author.

Sure, there's more to both companies than their cloud businesses. But it's difficult to deny that every technology company is prioritizing the cloud opportunities being driven by AI's growth. These two names aren't knocking it out of the park on this front.

Why Alphabet Google parent Alphabet is knocking it out of the park on the cloud computing front, of course, reporting 82% year-over-year revenue growth for this arm during the second quarter. Whatever it's doing (particularly as it pertains to AI) is clearly working.

Moreover, unlike Microsoft and Amazon, everything else Alphabet is doing is also working well.

Take its search business as an example. Google's advertising revenue -- including YouTube -- grew by more than 14% during the second quarter, with search-based advertising revenue specifically improving 15%. Subscription-based revenue and device revenue (Google makes its own smartphones and owns the Android mobile operating system, which funnels people to the Play Store) grew by more than 15% year over year.

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The company is demonstrating strength in ways that don't appear directly on its income statement, too. Statcounter's numbers suggest that  Android is at least maintaining its leading share of 67% of the worldwide mobile operating system market. And within the United States, TV ratings agency Nielsen reports YouTube is the most-watched streaming platform in terms of total viewing time, and is growing its share largely at the expense of venerable Netflix.

This leadership doesn't directly generate revenue. It does, however, confirm that Alphabet is doing the things that generate revenue, and doing them well.

Now, and for a while This won't always be the case, of course. There was a time when Microsoft could do nothing wrong. Ditto for Amazon. Those times may come again for those two, just as a time may come when macro conditions don't favor Alphabet's strengths as much.

The environment right now and for the foreseeable future, however, is one that favors Google's parent far more than it does the iconic software and e-commerce giants.

The personal computing space has been democratized, for instance, not just by more hardware choices (mobile devices are now viable alternatives to traditional desktops and laptops), but also by the wider adoption of options other than Windows or Microsoft's productivity software. Amazon's early lack of in-house technological development capabilities, meanwhile, is still a key reason its cloud business is losing share to Alphabet.

Alphabet, conversely, entered this era of connected computing ideally positioned. Not only is Google Search a perfect jumping-off point for Alphabet's AI-powered chat assistant, Gemini, but the demand for more mobile computing has turned Android into a critical platform. Recently rising streaming subscription prices have also made YouTube more attractive as a free-to-use alternative.

This backdrop and these conditions will eventually change. They aren't apt to change for a while, though, which means they should provide sustained tailwinds for Alphabet. Yes, the stock has essentially drifted since May, but this dynamic is much bigger than a few tepid months.

Amazon on Thursday settled a lawsuit brought by the District of Columbia over claims it made slower deliveries in the city’s low-income neighborhoods, as the e-commerce giant faces pressure from government officials over how it runs its vast logistics network.

The lawsuit, filed in 2024 by Attorney General Brian Schwalb in Superior Court of the District of Columbia, argued Amazon had excluded two ZIP codes from its in-house Prime delivery services. Those ZIP codes covered historically low-income areas, the lawsuit said. The company failed to inform customers about the slower deliveries and violated the District of Columbia’s consumer protection laws, according to the lawsuit.

Under the terms of the settlement, Amazon will refund $7.25 million in Prime membership fees to affected customers, according to a news release. The company will also pay a $1 million penalty to the district and agreed to notify Amazon customers there of future restrictions on its delivery service. The attorney general’s office said roughly 69,000 members of Amazon’s Prime service experienced slower deliveries as a result of Amazon’s practices.

“Amazon deceived thousands of its customers,” Mr. Schwalb said in a news release. “Now, we’re putting more than $7 million back in the pockets of people who were taken advantage of.”

An Amazon spokesman, Steve Kelly, said the company had never deceived anyone about the deliveries and in “no way is this settlement an admission of wrongdoing.”

“Rather than engage in prolonged litigation, we chose to resolve this matter so we can stay focused on what we do best: delivering great service to every customer across Washington, D.C.,” he said.

Amazon faces new pressure over the way it operates its sprawling web of warehouses, trucks and drivers that ferry goods to its customers. Mayor Zohran Mamdani of New York earlier this year endorsed local legislation that would require Amazon and other delivery companies to directly employ drivers, rather than treating them as contractors. Chicago is considering similar legislation, which is supported by unions.

A US Postal Service worker delivers Amazon boxes in New York Victor J. Blue/Bloomberg via Getty Images Amazon's negotiations with the US Postal Service became so strained last year that the company started preparing for a future without one of its most important delivery partners.

The internal contingency plan, called Project Aurelian, explored how Amazon could continue serving customers if a new USPS contract fell apart, according to an official planning document reviewed by Business Insider and people familiar with the project.

Amazon and USPS ultimately reached a deal in April. But the planning exercise has reshaped Amazon's future delivery strategy.

The e-commerce giant now aims to expand its network to about 39,400 US ZIP codes by 2029, about 95% of total ZIP codes and enough to cover 99.9% of US customer demand, the document shows. Under this new "dual coverage" approach, Amazon wants every addressable ZIP code served by both its own delivery network and at least one third-party carrier, giving it two ways to reach customers.

It's Amazon's most ambitious effort yet to reach customers through its own delivery network in nearly every corner of the country. This protects the company if delivery partners change their plans, and gives it more leverage in future negotiations.

An Amazon spokesperson said the projections in its document are preliminary and could change, adding that the document reflected the views of a "limited group."

"We're always forecasting across our operations, and we routinely produce and revise many versions of planning documents," the spokesperson said. "That said, no one should be surprised that Amazon works to build redundancy into its logistics network to ensure continuity of service for customers." USPS declined to comment.

A high-stakes USPS negotiationProject Aurelian began with a simple but consequential question: What would Amazon do if it no longer had USPS?

The company has historically been the Postal Service's largest customer, while USPS gives Amazon delivery reach in rural and remote parts of the country where its own network is thinner.

The negotiations became publicly contentious. Amazon said the Postal Service walked away from talks in December at "the eleventh hour", creating "significant uncertainty."

The new agreement, reached in April, set a minimum volume of 1.27 billion Amazon packages, 19% below the prior agreement's minimum, according to the internal document obtained by Business Insider.

But the Project Aurelian analysis exposed a vulnerability that remained even after the companies struck a deal.

Amazon identified what it called the "structural fragility of external carrier dependency" during the USPS contract renegotiation. If an outside carrier abruptly changes its volume or contract terms, areas without an Amazon delivery alternative can face immediate service problems with "no mitigation lever available," according to the document.

An Amazon delivery person organizing packages in Queens, New York.  Lindsey Nicholson/UCG/Universal Images Group via Getty Images How Amazon gets to nearly 40,000 ZIP codesAmazon's plan to reach the rest of the country partly relies on building more conventional delivery stations. These are the final facilities in the shipping process that receive packaged items from fulfillment centers before sorting and staging them for drivers to deliver to customers.

But there's a lot more to the plan, which rests on three main pieces.

First, Amazon plans to open 165 core delivery stations between 2027 and 2029, including 50 in new areas. This part of the expansion would add roughly 3,300 ZIP codes where Amazon can offer dedicated van delivery. It's also pursuing Project Mercury, a plan to build more than 1,000 same-day fulfillment centers and put popular inventory within 10 miles of most Prime customers, as Business Insider previously reported exclusively.

The second piece is Hub Delivery, which pays local businesses, particularly in rural areas, to deliver Amazon packages. Amazon expects the program to add roughly 4,500 ZIP codes with minimal new capital spending. Project Aurelian identified it as Amazon's most attractive option, based on cost and customer experience, in areas where a dedicated delivery station was not economical, according to the document.

Lastly, Amazon plans to lower the minimum number of packages a ZIP code must generate before it will offer its own delivery service there, from 50 a day to eventually no minimum at all. That would allow existing delivery stations to add nearby, low-volume ZIP codes to their routes without requiring new buildings, the document states.

Together, those approaches would expand Amazon's delivery footprint from 23,700 ZIP codes today to 26,500 in 2027 and roughly 39,400 by 2029. Amazon's document describes the end goal as reaching "all addressable ZIPs."

For comparison, USPS says there are roughly 41,600 ZIP codes nationwide, though that figure includes specialized ZIP codes assigned to individual organizations and others that are not typical residential delivery territories.

Amazon's own network is also expected to carry a larger share of its packages. Its internal forecast projects first-party delivery rising to 88.7% of US packages by 2029, as Business Insider previously reported exclusively.

Amazon still needs USPSFor all of Amazon's expansion, it is not preparing to cut USPS out.

Amazon's current US Postal Service contract expires in September 2029, according to the planning document. The company assumes the partnership will be renewed, citing "mutual dependency" between Amazon and USPS.

The economics help explain why. Without a renewal, Amazon estimates its network would need to absorb an additional 5.2 million packages in an average peak week, build dozens of new delivery sites, and spend about $323 million in additional capital, according to the document.

Amazon is nevertheless investing heavily to ensure it has alternatives. Its broader US last-mile delivery plan calls for $17.6 billion in building-related spending in 2027 and 2028, $7 billion more than its previous forecast. That figure includes projects beyond the Aurelian-driven expansion.

The strategy is not to eliminate outside carriers, but to make Amazon less dependent on any one of them. Project Aurelian found that the cost of an unexpected carrier disruption could exceed the ongoing expense of growing an Amazon-controlled delivery network.

"We'll continue to invest in our last-mile network and to partner with carriers like UPS, FedEx, and USPS to deliver for customers," the Amazon spokesperson told Business Insider.

Have a tip? Contact this reporter via email at [email protected] or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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Eugene Kim You're currently following this author! Click to unsubscribe from email alerts.

Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail and logistics operations to AWS, Alexa, and its internal culture.Previously, he worked at CNBC, Fortune Magazine Korea, and Japan's Yomiuri Shimbun. He holds degrees from NYU and Columbia University’s Graduate School of Journalism.In 2022, Eugene reported on internal documents indicating that Amazon allegedly used deceptive tactics to enroll customers in Prime and made cancellation difficult. The Federal Trade Commission sued Amazon the following year, citing his reporting. The case ended in a record $2.5 billion settlement in 2025.His work has received multiple honors, including the SF Press Club’s Bay Area Journalism Award and SPJ NorCal’s Excellence in Journalism Award.Eugene lives in the Bay Area. Contact him via email at [email protected], or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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Amazon.com Inc. (NASDAQ:AMZN) may not need to lose the sale to lose part of the economics of AI shopping. A new Andreessen Horowitz analysis argues that AI assistants could become the place where consumers decide what to buy, potentially bypassing Amazon’s sponsored listings even when the final order still moves through its warehouses.

Amazon’s Bigger AI RiskThe distinction matters because Amazon has built a substantial business around controlling the shopping journey. In 2025, the company generated $69 billion in advertising revenue, up 22% from a year earlier, according to Amazon’s Q4 2025 earnings report. Advertising has become an increasingly important part of the economics surrounding its retail marketplace.

That is the vulnerability highlighted by a16z partners Alex Immerman and Santiago Rodriguez. Their Sept. 29 analysis argues that AI agents do not need to recreate Amazon’s fulfillment network to put pressure on its profits. They simply need to become the place where consumers decide what to purchase.

The distinction is subtle but important. An AI assistant could compare products, make a recommendation and send the resulting order to Amazon without the shopper ever browsing Amazon’s search results or seeing a sponsored product.

That could leave Amazon with the physical fulfillment while someone else controls discovery.

Amazon Is Building Its DefenseAmazon is not standing still. The company has already combined Rufus and Alexa+ into Alexa for Shopping, an agentic assistant offering recommendations, product comparisons, price history and automated purchases. Amazon said active users were close to doubling in the second quarter, while interactions increased more than fivefold year over year.

Amazon is also incorporating advertising into its own AI experiences. CEO Andy Jassy said shoppers increasingly discover products through Alexa+ and Alexa for Shopping, while Sponsored Prompt clicks convert to sales 48% more often and generate 21% higher average spending than shoppers who do not click them.

That makes the fight over outside AI agents more consequential. Amazon is effectively trying to make sure the AI interface remains connected to the advertising engine.

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The Investor Question Is DiscoveryThe bigger question for AMZN investors is whether AI shopping creates incremental demand or simply reroutes existing demand through a new intermediary.

a16z argues that Amazon’s massive fulfillment infrastructure gives it bargaining power, but warns that retaining the order does not necessarily mean retaining the same profit pool.

For investors, the next signal may therefore be less about whether Amazon keeps growing online sales and more about who controls the moment when the consumer decides what to buy. If AI agents capture that decision-making layer, Amazon could find itself defending an advertising business that has become too important to lose — even when the packages keep arriving at the door.

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SummaryAmazon reiterates a Buy rating as AI infrastructure capex rises to $220B by 2026, underpinned by robust contractual demand.Anthropic and OpenAI have committed over $225B in multi-year AWS and Trainium capacity, reducing utilization risk and supporting the investment thesis.AWS delivered 37% YoY revenue growth in Q2 with a 39.4% operating margin, demonstrating strong profitability amid heavy reinvestment.Key risks remain around counterparty credit quality and the ultimate return on invested capital, keeping the rating at Buy rather than Strong Buy. georgeclerk/iStock Unreleased via Getty Images

Investment Thesis Since my last article for Amazon (AMZN), many things have changed, and now it's a good time to do a full recap on the stock.

Over the past few months, Amazon's AI capital

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Amazon's delivery vehicles are creating hazards on New York City's streets, new data suggest. Bloomberg/Getty Images Amazon is making New York City traffic more dangerous, according to new data compiled by an advocacy group.

Vehicles that deliver Amazon packages across the city received over 14,000 citations for violations between July 2020 and June 2025, including blocking emergency vehicles, obstructing fire hydrants, and speeding in school zones, said a report from The Alliance for a Greater New York. The report is based on data collected by the city.

The report drew support from one New York City official as the city continues its crackdown on delivery services under Mayor Zohran Mamdani. Most recently, the city inked a $131.5 million settlement with DoorDash last week over the company's pay practices.

Many of the workers driving the offending vehicles are independent contractors through an Amazon Delivery Service Partner, a third-party separate from the e-commerce giant. The workers often wear Amazon-branded clothes and must pass an Amazon-conducted background check to do the job.

"But when workers complain about dangerous conditions, Amazon points them to their DSP," the report reads. "And if an Amazon van is responsible for a traffic crash, the victim may sue Amazon for damages, but Amazon could argue that only the DSP is to blame."

An Amazon spokesperson said that the company works with DSPs "to promote safe delivery practices, from hands-on driver training to in-vehicle safety technology." The company has trained roughly 110,000 drivers through its Last Mile Training Academy, for instance, where drivers learn to safely operate a delivery vehicle.

DSPs are responsible for making sure that their drivers follow traffic laws — and have to assume the costs when drivers incur violations, the spokesperson said.

Amazon is also investing in alternatives to traditional delivery vehicles, such as cargo ebikes and on-foot delivery, the spokesperson said.

The violations were widespread across the city's five boroughs, the report said. They also involved 637 vehicle license plates.

Vehicles affiliated with Amazon were also the subject of roughly 13,000 idling incidents over the same five years, the report said. New York City allows residents to report commercial vehicles that idle for too long, and the city evaluates the complaints.

The findings point to a threat that Amazon's delivery model brings to New York City's streets, Samuel A.A. Levine, Commissioner of New York City's Department of Consumer and Worker Protection, said.

"The data is clear: an economy that rewards exploitation and shields powerful corporations from responsibility causes real harm to our communities," Levine said, in a statement.

Levine urged the passage of the Delivery Protection Act, a proposal before the New York City Council that would require companies like Amazon to directly employ the workers who deliver their packages.

Amazon opposes the measure, according to testimony that the company submitted in April.

Do you have a story idea about Amazon's delivery operations? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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Alex Bitter You're currently following this author! Click to unsubscribe from email alerts.

Alex Bitter is a senior retail reporter covering Uber, Lyft, DoorDash, Instacart, and related companies. His coverage ranges from the experiences of gig workers to what's happening inside the world's biggest ride-hailing and delivery companies.Alex has also written about the retail and food industries. Convenience store chain Sheetz ended its "smile policy" after his reporting. Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.

Amazon Delivery New York City More eCommerce

Amazon.com (AMZN.O), GoodRx (GDRX.O) and other companies offering online subscriptions that charge a flat fee for prescription drugs and other health services are reaping the ​benefits of Americans looking to combat rising costs and dwindling health insurance options.

The prescription plans cost from $5 per month at Amazon to $14.99 ‌at GoodRx and include free access to select generic drugs. GoodRx's program, called Companion, also offers discounts on telehealth and common vision, dental and lab services.

Analysts said these monthly fee-based services can help consumers save money even when they have health insurance.

“If someone is on multiple drugs, this kind of subscription can make a lot of sense," said Truist analyst Jailendra Singh.

Health insurance ​premiums and out-of-pocket costs have risen in part due to higher prices for medical services, and millions of Americans have dropped individual plans offered under ​the Affordable Care Act in 2026. Costs for employers who sponsor most private insurance plans will rise up to 11% ⁠in 2027, benefits consultants say.

"Since we launched RxPass in 2023, the number of customers using the program has grown nearly threefold, and more than ​70% fill three or more different medications with us," said John Love, vice president at Amazon Pharmacy. "That tells us RxPass is reaching people with ongoing health needs, ​where consistent access to affordable refills really matters.”

It is not clear how many Americans are enrolled in prescription drug subscription plans.

GoodRx said total subscription revenue increased 39% to $28.5 million in the second quarter from a year earlier. Subscription plans, which include the Companion plan launched in May and other older programs, increased 14% in the quarter.

GoodRx CEO Wendy Barnes said the plan ​is drawing consumers squeezed by higher out-of-pocket costs, including rising deductibles and narrower lists of covered drugs. "Think of it as a complement to insurance," she said.

Shares of ​GoodRx and Amazon are up 22% and 7%, respectively, this year.

William Soliman, chief investment officer at White Manna Capital Partners, said customers pushed into high-deductible plans in which people must ‌spend thousands ⁠of dollars before coverage kicks in often compare cash-pay options with out-of-pocket prices for prescription drugs.

"(Amazon's) $5 monthly price is simple and predictable, which matters when consumers are navigating complicated coverage changes," said Soliman.

Amazon's Love said RxPass attracts people with and without health coverage, and many choose to pay with cash. Many consumers are seeking refills of mental health and cardiovascular drugs, he said.

AVAILABILITY OF GENERIC DRUGS VARIES
Generic versions of branded medicines can cost a few dollars a month or less, but some ​may be far more expensive.

Amazon's plan, available ​to Prime members, offers around 50 ⁠generic drugs and GoodRx offers over 250, a fraction of the 30,000 approved in the US.

Another company, FreeRx, charges $49.95 per month for virtual urgent care appointments and more than 1,000 generics. Mark Cuban's Cost Plus Drugs offers generics at prices it ​says are cheaper than the standard $10 or $15 co-pay most health insurance plans charge.

Cuban said his platform's pricing, based on ​his acquisition cost of ⁠the drug and a 15% markup, offers better value than a subscription over time.

The subscriptions can lead customers to other products sold by the companies on their websites, analysts said. Amazon offers people with Prime subscriptions a discount on One Medical primary care, for instance.

"Can Amazon become the front door to healthcare? 100%," said Tom Hulick, managing partner ⁠at Strategy ​Asset Managers, an investment firm that owns less than 1% of Amazon shares.

Investors expect RxPass revenue ​to remain modest compared to the e-commerce giant's projected $828 billion in 2026 revenue, according to LSEG data.

"I wouldn’t even think of RxPass as a revenue product," said Rajiv Leventhal, a healthcare analyst at ​research firm EMarketer. Its value is to push people to Amazon Pharmacy and strengthen Prime subscriptions, he said.