Amazonem vlastněná Zoox začala nasazovat plně autonomní vozy v San Franciscu a přímo vyzývá Waymo na jeho domácím trhu. Firma už ujela přes 3 miliony autonomních mil a přepravila téměř 1 milion cestujících.
Amazon.com Inc. (AMZN, Financials) is taking another step into the robotaxi race, and this time it's marching directly into Waymo's home turf.
Amazon-owned Zoox has begun deploying its fully autonomous vehicles onto the streets of San Francisco, putting the business in more direct confrontation with Alphabet Inc. (GOOGL, Financials).Zoox's automobiles are unlike any typical automobile. They have no steering wheel or pedals, are bi-directional and seat four people facing each other.
The business has now clocked over 3 million autonomous miles and carried close to 1 million passengers, The Wall Street Journal reported. Zoox also began charging for rides in Las Vegas on Aug. 10 after gaining a government exemption to operate vehicles commercially without conventional driver controls. “San Francisco is a bigger test.
Waymo has a large presence there already, so Zoox has to show its purpose-built strategy can function at scale in one of the most scrutinized autonomous driving markets. In 2020, Amazon acquired Zoox for roughly $1.2 billion. The company is still small relative to AWS and e-commerce, but the possibility is considerably bigger if robotaxis become commonplace.
That's why this expansion is worth keeping an eye on. Amazon is not only financing an autonomous-driving experiment anymore. Now it's starting to take that experiment out into actual cities, with paying consumers and a well established rival waiting in the wings.
TD Cowen zvýšila odhad tržeb AWS na 165 miliard USD pro rok 2026 a na 222 miliard USD pro rok 2027, tedy o 11 % nad konsensem. Růst má táhnout generativní AI a zhruba 200 miliard USD kapitálových výdajů Amazonu v roce 2026.
Amazon (NASDAQ:AMZN | AMZN Price Prediction) shares are trading at $258.63 as of Friday’s close, down 2.47% over the past week but up 14.19% year to date. Still, shares of the hyperscaler sit well below their 52-week high of $287.16, and the Street’s consensus price target sits at $280.47.
Most analysts hold constructive but measured outlooks. TD Cowen, however, is making a significantly bolder call on AWS revenue, centered on one argument: Wall Street is still underestimating Amazon’s AI-driven cloud growth. Can AMZN realistically reach TD Cowen’s implied target by end of 2026?
TD Cowen’s $165 Billion AWS Prediction TD Cowen raised its AWS revenue estimate to $165 billion for 2026, placing it 3% above Wall Street consensus, and extended that view to $222 billion for 2027, which is 11% above consensus. The firm’s thesis rests on generative AI tailwinds and Amazon’s commitment to approximately $200 billion in capital expenditures in 2026, predominantly directed at AI infrastructure. TD Cowen believes the divergence between its estimates and consensus will widen as enterprise AI workloads accelerate through the year.
Key Drivers of AMZN Stock Performance 1. AWS acceleration with room to run: AWS closed Q4 2025 at a $142 billion annualized run rate, growing 24% year-over-year, the fastest pace in 13 quarters. That trajectory directly underpins TD Cowen’s $165 billion estimate. A cloud business compounding at that rate inside a diversified mega-cap offers durable, long-horizon growth without the volatility of pure-play AI names.
2. Custom silicon creating a structural cost advantage: Amazon’s Trainium and Graviton chips now carry a combined annualized revenue run rate well over $10 billion, growing triple-digit percentages year-over-year. Proprietary chips lower inference costs for customers and improve Amazon’s own economics, compounding margins over time.
3. Enterprise AI adoption still in early innings: Over 100,000 companies are using Amazon Bedrock, and CEO Andy Jassy described enterprise production workloads as “the lion’s share of that demand still yet to come.” That pipeline represents multi-year compounding revenue with a 5-to-10-year horizon.
What Will It Take for AMZN to Reach TD Cowen’s Target? With 10.73 billion shares outstanding and a current market cap of approximately $2.2 trillion, meaningful upside requires AWS to sustain its growth trajectory while operating margins expand. Three conditions matter most: AWS must maintain or accelerate its growth rate through 2026 as new AI capacity comes online; the $200 billion CapEx cycle must translate into revenue faster than the market currently models; and enterprise migration from on-premise infrastructure to cloud must continue broadening beyond the AI labs that currently dominate demand.
The primary risk is straightforward: Free cash flow declined 37.12% year-over-year in Q4 2025 as CapEx surged, and sustaining that investment pace without visible near-term return will pressure sentiment. Still, with 63 out of 67 analyst ratings at Buy or Strong Buy and TD Cowen’s AWS estimates sitting materially above consensus through 2027, the institutional conviction behind this growth story remains among the strongest in large-cap tech.
Contact [email protected] for any questions or corrections.
Amazon za posledních 12 měsíců vytvořil asi 161,4 miliardy USD hotovosti, ale utratil 169 miliard USD, takže volný peněžní tok byl záporný o 7,6 miliardy USD. Výdaje na AI tlačí nahoru i dlouhodobý dluh, který vzrostl na téměř 128,9 miliardy USD.
The earnings statement is where most investors go first when assessing a company's financial results. On that score, Amazon (AMZN -0.57%) looks like it had a breakout quarter in the second quarter of 2026, with earnings of $5.75 per diluted share, up from $1.68 in the same quarter of 2025. But there's a winkle here, and the story gets even more complicated when you step back and examine the cash flow statement.
Amazon's quarter wasn't really as good as it looks Earnings are created by complying with generally accepted accounting principles (GAAP). They are, even at the best of times, just a hazy snapshot of a company's performance. That's highlighted by Amazon's $5.75 second-quarter earnings figure, which includes $69 billion in "other" income. That isn't likely to be repeated, as it is related to the company's investment in Anthropic. And if Anthropic's value declines, that benefit could actually reverse.
Image source: Getty Images.
But the presence of that number, which was actually larger than the company's $51.3 billion in operating income, highlights why investors also look at the cash flow statement. The cash flow statement shows where the company's cash is generated and how it is used. For years, large technology companies like Amazon generated huge amounts of cash, allowing them to amass large cash balances to fund their businesses, capital investment needs, and acquisitions.
Artificial intelligence (AI) has changed the cash flow story. Over the past 12 months, Amazon generated around $161.4 billion in cash, up 33% year over year, but spent $169 billion, meaning the company spent around $7.6 billion more in cash than its business generated. Those are very large numbers, with AI spending driving a significant share of the company's capital investment plan.
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There's more spending to come in the AI arms race This is worth knowing because spending on artificial intelligence appears to be heating up rather than cooling down. And if Amazon isn't generating enough cash to cover its spending, it will need to find money elsewhere. Which is where another cash flow number comes into play: the nearly $77 billion the company raised over the past year from the sale of long-term debt.
This ties the story to the balance sheet, where Amazon's long-term debt rose from $65.6 billion at the end of 2025 to nearly $128.9 billion at the end of the second quarter of 2026. If you own Amazon or are considering buying it, you need to look beyond its earnings and pay close attention to the negative impact of AI spending on its cash flow statement and balance sheet.
Amazon letos vzrostl o 15 % a obchoduje se za 21,3násobek očekávaného ročního zisku, jen mírně nad průměrem S&P 500. Ve druhém čtvrtletí tržby stouply o 20 % a provozní zisk vyskočil na 27,5 miliardy USD.
Amazon (AMZN -0.57%) has emerged from a challenging period with high growth and massive opportunities. Its artificial intelligence (AI) spend, which provoked an exodus from the stock last year, is paying off, and the market is starting to appreciate it again.
Amazon stock is up 15% year to date, edging out the S&P 500's 13% gain, but it still looks cheap; it's trading at 21.3 times forward, 1-year earnings, a very slight premium to the S&P 500 average of 20.4.
Image source: Amazon.
Amazon has massive opportunities CEO Andy Jassy has maintained over the past few years that the AI spend is necessary to harness the incredible opportunities in AI. Amazon has a first-mover's edge and the most to gain, since it's the largest cloud company in the world.
At times, Jassy has appeared surprised by the intense, negative market reaction to what seems logical and necessary. He has reiterated many times that this is the biggest opportunity since the internet, and that there's going to be a shift to the cloud. Well, that time has come, and Amazon is ready.
Although Amazon has been reporting strong growth for a while, the second quarter was a standout. Sales increased 20% over last year, all the more impressive now that Amazon is the largest company in the world by sales. It's highly profitable as well, and operating income rose from $10 billion last year to $27.5 billion this year.
Amazon Web Services (AWS), the cloud segment, is doing a lot of the heavy lifting. Sales for the cloud business increased more than 37% year over year, the highest in 18 quarters. That's in turn driven by AI. AWS offers a vast platform for AI development with a large array of features and products for every budget. It serves a huge client base of top-tier companies like Warner Bros. Discovery, Snowflake, and Moody's, all of which it signed new deals in the second quarter. AWS operating income increased from $10.2 billion to $16.6 billion, accounting for more than 60% of the total.
It also has a fast-growing chip company which would be one of the largest chip businesses in the world on its own, and it signed multi-year commitments with Anthropic and OpenAI in addition to many more clients in the second quarter. Amazon's Graviton5 chip has 25% better compute performance than Graviton4, and the line already has 30% to 40% better compute performance than similar chips. Revenue commitments for Graviton increased threefold sequentially in the second quarter.
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Investors shouldn't ignore progress in e-commerce, though. Amazon added 80 U.S. cities to its ultra-fast delivery service, which gets orders to customer in less than 30 minutes. E-commerce is still Amazon's bread and butter, and the money coming in from the core e-commerce segment provides the foundation for the company to launch new businesses like AWS and the brand-new Amazon Leo satellite broadband business, which competes with Space Exploration Technologies' Starlink business. E-commerce is still growing by double digits, and if not outshined by AI, it would be impressive on its own.
Is Amazon stock a bargain? So why is Amazon stock so cheap?
When a company is as big as Amazon, or any of the mega-cap companies, the market sees a cap on growth. Although Amazon is growing by double digits, it's not the same kind of astronomical growth as a young upstart. So while there's a long opportunity ahead, it's going to come more slowly and more steadily. That's the only reason I can think of for why Amazon stock looks so cheap today.
Investors should keep that in mind when considering Amazon stock. The company can still outperform the market and create shareholder value, but it's not going to deliver the same life-changing wealth it did in the past.
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Amazon (NASDAQ: AMZN | AMZN Price Prediction) trades at $259.39, well below where fundamentals suggest it should. Our 24/7 Wall St. price target is $343.50, implying 32.8% upside over the next 12 months. Our recommendation is buy, with a high (90%) confidence rating.
24/7 Wall St. Price Target Summary Metric Value Current Price $259.39 24/7 Wall St. Price Target $343.50 Upside 32.8% Recommendation BUY Confidence Level 90% Why Amazon Looks Historically Cheap Right Now Amazon is up 12.69% year to date and 16.22% over the past year, yet sits 1.89% below its 52-week high of $287.20.
Q2 FY26 revenue hit $200.6 billion, up 19.62%, with operating income up 43.24% to $27.46 billion. AWS grew 37%, the fastest in 18 quarters, with a $496 billion backlog. Advertising jumped 26%. At a trailing P/E of 21 and forward P/E of 23, Amazon trades closer to a mature retailer than a business with AWS growing at this pace.
Why Bulls See a Breakout Ahead The bull case rests on AWS operating leverage now visible in the numbers. AWS margins hit 39.4% in Q2, and majority of 2027 AI capacity is already reserved. Andy Jassy told investors “we long believed AWS could become a few hundred billion dollar revenue business and now believe it will be at least double that and very possibly be a trillion dollar annual revenue business.”
Advertising runs at over $70 billion TTM, and Amazon’s chips business already exceeds a $25 billion annual run rate growing triple digits. Our model’s bull case lands at $393.98, a 52.32% total return if AWS keeps accelerating.
What Could Go Wrong The bear case centers on capex. Amazon guides to roughly $200 billion in 2026 capital spending, and TTM free cash flow turned negative at -$7.6 billion. Long-term debt has climbed to $119.1 billion from $65.6 billion. Reported GAAP EPS has been flattered by $53.4 billion in non-operating gains tied to Anthropic. Q3 faces an 80 basis point FX headwind.
Management notes servers reach break-even in under three years and data centers can be monetized for 30-plus years, so the free cash flow air pocket reflects investment timing, not broken economics. Our bear case still lands at $293.37, a 13.42% gain.
How Amazon Compares to Microsoft and Alphabet Against hyperscaler peers, Amazon’s multiple looks most compressed. Microsoft (NASDAQ: MSFT) competes via Azure, but Azure growth trails AWS’s 37% pace this quarter, and Microsoft trades at a materially richer forward multiple than Amazon’s 23x.
Alphabet (NASDAQ: GOOGL) mirrors the ads-plus-cloud combination and typically trades in the low-20s forward, giving Amazon almost no premium despite carrying the fastest-growing hyperscaler. On that basis, the 24/7 Wall St. price target of $343.50 looks conservative.
Amazon Price Prediction 2026-2030 The 24/7 Wall St. price target of $343.50 with a buy rating and 90% confidence reflects a stock where the multiple has compressed while operating income accelerates.
The thesis strengthens if AWS holds growth above 30% into Q4. It weakens if capex guidance for 2027 lurches materially higher without a matching backlog signal. On today’s numbers, this looks like a rare setup in the mega-caps.
Year 24/7 Wall St. Price Target 2026 $279.80 2027 $370.96 2028 $412.77 2029 $490.48 2030 $535.00 These projections assume Amazon executes on AWS capacity expansion and advertising monetization. Significant upside or downside could result from AI infrastructure returns and 2026-2027 free cash flow recovery.
Contact [email protected] for any questions or corrections.
Hunterbrook Media uvedla, že Google je dosud nejmenovaný zákazník v rámci chladicí zakázky Modine za více než 4 miliardy USD. Akcie MOD v pátek vzrostly o 2,42 %.
Modine Manufacturing Co. (NYSE:MOD) shares are rising Friday. An investigative report from Hunterbrook Media identified Google as the previously unnamed customer behind Modine’s $4 billion cooling agreement. Here’s what you should know.
Modine Manufacturing shares are climbing with conviction. Why is MOD stock up today? Report Names Google as Modine’s Mystery $4 Billion CustomerHunterbrook Media said it obtained material it believes came from an internal Modine planning database, surfacing publicly on GitHub roughly a month ago in what looked like the middle of a broader shift of company records over to Alphabet Inc.’s (NASDAQ:GOOG) cloud infrastructure.
Per the report, the leaked files tie Google to a supply arrangement Modine disclosed in May without naming the customer, one that commits Modine to setting aside capacity for over $4 billion worth of Airedale chillers through 2029. The reporting also points to a second layer of Google business in the pipeline, roughly $4.5 billion in opportunities at various stages, of which about $433 million has already converted into bookings.
The database reportedly extends past Google too, pointing to close to $3 billion Modine considers locked in or highly probable from Amazon.com Inc.’s (NASDAQ:AMZN) cloud unit, Crusoe and more than a dozen other data center clients, on top of further early-stage business. Hunterbrook estimated Modine’s overall pipeline at close to $23 billion, with Amazon’s cloud division alone accounting for over half that sum.
Given the scale of what it was reporting, Hunterbrook Media also disclosed that, at the time of publication, its affiliated fund, Hunterbrook Capital, holds a long position in Modine shares and a short position in a basket of comparable companies, cautioning that its position could change.
Database Suggests Modine’s Pipeline Could Exceed its Own GuidanceBeyond the size of the pipeline itself, the report also examined what those numbers could mean for Modine’s upcoming results. Running the numbers through Modine’s own conversion odds, Hunterbrook arrived at an implied $540 million in revenue for the fiscal quarter closing in September, roughly a fifth higher than what Modine has guided to.
Stretched across fiscal 2027, that same math works out to $2.3 billion, a figure that would more than double last year’s results and land above the upper edge of Modine’s 60% to 80% growth target.
That same pipeline also comes with real execution risk. The database also reportedly shows Modine working through supplier shortages and engineering constraints as it scales up production, while pursuing new business further up the cooling stack, including an effort to qualify equipment against Nvidia’s (NASDAQ:NVDA) liquid-cooling specifications.
MOD Shares Are ClimbingMOD Price Action: Modine shares were up 2.42% at $195.35 at the time of publication on Friday, according to Benzinga Pro.
is expanding its manufacturing footprint in Texas with plans for a new robotics facility in Austin, Texas Gov. Greg Abbott said in a Wednesday statement.
The site is expected to add between 300 and 500 manufacturing and engineering positions as Amazon expands its robotics operations. The facility will add to the company's existing investment base in the state, which has exceeded $100 billion since 2010.
Amazon Vice President of Worldwide Economic Development Holly Sullivan pointed to Austin's workforce, universities and local partnerships as factors behind the company's decision to establish the facility there.
The investment adds to Amazon's broader presence in Texas across its businesses. The company has continued building out infrastructure and operations in the state as it expands its logistics and technology network.
Amazon shares could see modest investor interest from the facility plans, although the direct financial contribution is likely to remain limited relative to the company's overall operations. The project may instead highlight Amazon's continued investment in automation and robotics capacity.
The Austin expansion is a positive operational development, but investors will likely view its near-term impact as limited compared with Amazon's larger growth initiatives.
Aurora Investment Managers ve 2. čtvrtletí zvýšila podíl v Amazon.com o 23,4 % na 27 702 akcií v hodnotě 6 602 000 USD. Amazon tvoří asi 4,0 % portfolia fondu.
Aurora Investment Managers LLC. increased its holdings in Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 23.4% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 27,702 shares of the e-commerce giant’s stock after purchasing an additional 5,256 shares during the quarter. Amazon.com makes up approximately 4.0% of Aurora Investment Managers LLC.’s holdings, making the stock its 14th largest holding. Aurora Investment Managers LLC.’s holdings in Amazon.com were worth $6,602,000 at the end of the most recent quarter.
Other hedge funds also recently bought and sold shares of the company. Red Crane Wealth Management LLC boosted its holdings in Amazon.com by 2.3% in the first quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant’s stock valued at $346,000 after acquiring an additional 38 shares in the last quarter. Robinson Smith Wealth Advisors LLC increased its stake in shares of Amazon.com by 0.7% during the first quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant’s stock valued at $1,147,000 after purchasing an additional 40 shares in the last quarter. Sfam LLC raised its stake in Amazon.com by 3.4% during the first quarter. Sfam LLC now owns 1,224 shares of the e-commerce giant’s stock valued at $255,000 after buying an additional 40 shares during the last quarter. Measured Risk Portfolios Inc. raised its position in shares of Amazon.com by 3.4% in the 1st quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant’s stock worth $251,000 after purchasing an additional 40 shares during the last quarter. Finally, CoreFirst Bank & Trust grew its position in Amazon.com by 1.1% during the 1st quarter. CoreFirst Bank & Trust now owns 3,620 shares of the e-commerce giant’s stock valued at $754,000 after purchasing an additional 40 shares during the last quarter. Hedge funds and other institutional investors own 72.20% of the company’s stock.
Amazon.com Stock Performance AMZN opened at $265.84 on Thursday. The company’s 50 day moving average is $249.09 and its 200 day moving average is $239.06. The company has a market cap of $2.87 trillion, a price-to-earnings ratio of 21.39, a PEG ratio of 1.73 and a beta of 1.45. Amazon.com, Inc. has a 12-month low of $196.00 and a 12-month high of $287.20. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23.
Amazon.com (NASDAQ:AMZN – Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, topping the consensus estimate of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The firm had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. During the same period in the prior year, the business posted $1.68 EPS. Amazon.com’s revenue was up 19.6% on a year-over-year basis. On average, equities research analysts predict that Amazon.com, Inc. will post 8.05 EPS for the current year. Insider Buying and Selling In related news, CEO Douglas J. Herrington sold 3,741 shares of Amazon.com stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $262.76, for a total transaction of $982,985.16. Following the sale, the chief executive officer owned 467,138 shares of the company’s stock, valued at approximately $122,745,180.88. This trade represents a 0.79% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of Amazon.com stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the completion of the sale, the senior vice president owned 41,190 shares in the company, valued at approximately $11,060,750.70. This represents a 18.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 16,011 shares of company stock valued at $4,256,608. 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: Prime Air expansion: Amazon plans to expand drone delivery to nearly 500 U.S. cities and towns by the end of 2026, roughly six times its current footprint. Deliveries could arrive in as little as 30 minutes for packages weighing up to five pounds. The move reinforces Amazon’s delivery advantage and supports efforts to compete with Walmart, FedEx and other logistics providers. Amazon to expand drone service to nearly 500 cities Positive Sentiment: AWS and AI momentum: AWS revenue reportedly grew 37% year over year to $42.2 billion in the latest quarter, its fastest growth in 18 quarters. Amazon also said its AWS AI business surpassed a $25 billion annualized revenue run rate, strengthening the case that AI workloads are accelerating cloud growth and could improve long-term earnings. Amazon’s AI business passed a $25 billion run rate Positive Sentiment: Infrastructure investment: Amazon increased its planned investment in a northwest Louisiana data-center campus from $12 billion to approximately $18 billion, signaling sustained demand for AWS capacity and allowing the company to secure power and water infrastructure in advance of regional grid constraints. Amazon Plugs $18B Into the Southern Power Grid Positive Sentiment: Analyst support: Wall Street’s average price target implies substantial potential upside, with analysts citing improving earnings estimates and AWS reacceleration. Wall Street analysts think Amazon could surge Neutral Sentiment: Alexa+ availability: Amazon made its AI-powered Alexa+ available at no additional cost to Fire TV users without requiring Prime membership. The broader user base could support future engagement and monetization, although the immediate financial impact is unclear. Amazon makes Alexa+ free on Fire TV Negative Sentiment: Capital-spending risks: The rapid data-center and AI buildout may pressure free cash flow, depreciation and returns. AWS also faces rising competition from other cloud providers and specialized AI infrastructure companies. Negative Sentiment: Insider transaction: CEO Douglas Herrington sold 3,741 shares worth approximately $983,000 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only 0.79%, making it a limited bearish signal. SEC insider transaction filing Analyst Upgrades and Downgrades AMZN has been the subject of a number of analyst reports. Mizuho set a $330.00 price objective on shares of Amazon.com and gave the company an “outperform” rating in a research note on Friday, July 31st. Barclays reiterated an “overweight” rating and set a $365.00 price target (up from $330.00) on shares of Amazon.com in a report on Friday, July 31st. TD Cowen reissued a “buy” rating and set a $350.00 price target (up from $340.00) on shares of Amazon.com in a research report on Friday, July 31st. Oppenheimer reissued an “outperform” rating on shares of Amazon.com in a research report on Friday, July 31st. Finally, Morgan Stanley restated an “overweight” rating and issued a $335.00 price objective (up from $330.00) on shares of Amazon.com in a report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, Amazon.com currently has a consensus rating of “Moderate Buy” and a consensus price target of $322.56.
Check Out Our Latest Report on AMZN
Amazon.com Company Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
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Podíl Amazonu ve společnosti Anthropic by mohl mít při IPO oceněném na 2 biliony USD hodnotu zhruba 420 miliard USD. Jeho investice ve výši 13 miliard USD už výrazně zhodnotila.
One of the most impressive investments at the corporate level in recent years has been Amazon's (AMZN +2.46%) decision to take an early stake in Anthropic. The tech giant invested $8 billion in the artificial intelligence start-up in 2024, then followed that up with an additional $5 billion investment this year.
Combined, those moves gave Amazon a reported 21% stake in Anthropic, the developer of the Claude chatbot and family of large language models. And they have paid off in a big way. According to Amazon's quarterly financial reports, its Anthropic stake was valued at $190.4 billion as of the end of June, including $97.9 billion in convertible notes and $92.5 billion in nonvoting preferred stock.
But that calculation was based on a May 2026 funding round that valued Anthropic at $965 billion, and it's already being valued at much more than that. In early July, secondary markets were valuing Anthropic at $1.2 trillion in anticipation of the company going public as early as October.That would bring Amazon's stake to a whopping $252 billion.
And more recent estimates from secondary markets put Anthropic's valuation at much higher -- $2 trillion or more. If Anthropic is successful in that offering (it submitted its confidential S-1 form to the Securities and Exchange Commission earlier this year to explore the possibility), Amazon's stake in it would be valued at roughly $420 billion.
Amazon executive chairman Jeff Bezos. Image source: Amazon.
The bigger Anthropic gets, the better it is for Amazon Amazon could book a huge profit from its Anthropic shares, should it ever want to divest itself of some of them. But considering how fast Anthropic is growing, it may be hard for Executive Chairman Jeff Bezos and CEO Andy Jassy to pull the trigger on a sale.
Let's look at how the Anthropic stake has become an increasingly larger part of Amazon. By doing so, we'll look at four data points.
Metric
March 31, 2026
June 30, 2026
Estimated Valuation in July 2026
Estimated Valuation in August 2026
Anthropic's estimated value
$353 billion
$965 billion
$1.2 trillion*
$2 trillion*
Amazon's stake in Anthropic
$74.2 billion
$190.4 billion
$252 billion
$420 billion
Amazon's market cap
$2.158 trillion
$2.566 trillion
$2.814 trillion**
$2.814 trillion**
Anthropic stake as a percentage of Amazon's market cap
3.43%
7.42%
8.95%
14.92%
Data sources: Amazon filings, Macrotrends. *Targeted IPO valuation. **Amazon's market cap as of Aug. 17, 2026.
For this example, we'll look at the value of Amazon's stake in Anthropic as reported by the company in its two most recent quarterly filings and compare it to the company's market cap. At the end of March, Anthropic accounted for only 3.4% of Amazon's value, but that share climbed to 7.4% by the end of June as Anthropic's valuation rose.
If Anthropic achieved a $1.2 trillion valuation in its IPO -- a conservative estimate, given how secondary markets are pricing the start-up now -- its Anthropic shares would be nearly 9% of Amazon's value. But based on a $2 trillion valuation -- assuming that Amazon's market cap stays roughly at its current level for the next two months or so -- that Anthropic stake is providing nearly 15% of Amazon's value.
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With all this in mind, Amazon investors should be watching the Anthropic news closely. The bigger the AI startup gets, the more important it is to Amazon. Based on its current outlook, Bezos and Jassy could realize a windfall if they sell some or all of those shares -- money that could help fund Amazon's aggressive AI build-out. And if Anthropic's valuation craters, Amazon would be looking at big paper declines.
Either way, though, Amazon's $13 billion investment has been amazingly profitable -- and it may just be in the opening stages.
Amazon ve 2. fiskálním čtvrtletí zvýšil tržby na 200,6 miliardy USD a provozní zisk na 27,46 miliardy USD. AWS vzrostl o 37 % na 42,23 miliardy USD, nejrychleji za 18 čtvrtletí.
Our 24/7 Wall St. price target for Amazon (NASDAQ:AMZN | AMZN Price Prediction) is $341.77, implying 31.73% upside from the current $259.45. Our recommendation is buy with a 90% confidence level, driven by AWS re-accelerating to its fastest growth in more than four years and an AI backlog that reshapes the multi-year earnings picture.
24/7 Wall St. Price Target Summary Metric Value Current Price $259.45 24/7 Wall St. Price Target $341.77 Upside 31.73% Recommendation BUY Confidence 90% The AWS Reacceleration That Changed the Narrative Amazon is up 12.4% year to date and 4.94% over the past month, though the stock has cooled 4.71% over the past week from a recent high. Shares trade roughly 14% below the 52-week high of $287.20.
The catalyst was Q2 fiscal 2026 results filed July 30, 2026. Revenue reached $200.6 billion, up 19.62%, with operating income up 43% to $27.46 billion. AWS grew 37% to $42.23 billion, its fastest pace in 18 quarters, and advertising climbed 26% to $19.8 billion. Shares jumped 17.98% within a day following the report.
The Case for $392 and Above Bulls point to an AI story that keeps compounding. Amazon’s AI and Chips businesses each cleared $25 billion annualized run rates in Q2 with triple-digit growth, and AWS backlog stood at $496 billion, growing triple digits year-over-year. Trainium2 is fully subscribed, and multi-gigawatt commitments now include Anthropic and OpenAI (the power, cooling, and networking suppliers behind that buildout are the subject of a free report we put together here).
Bedrock customers spent more in Q2 than in all prior quarters combined. CEO Andy Jassy told investors he now believes AWS can become a “trillion dollar annual revenue business” over time.
Advertising at a $70 billion-plus run rate and record delivery speeds strengthen the retail engine. Sell-side analysts echo the case, with 59 buy or strong buy ratings versus three holds and zero sells. If AWS margins hold near 39.4%, the bull case at $392.40 becomes realistic.
What Could Go Wrong The bear case starts with capex. Amazon spent $54.2 billion in a single quarter, up 68.44%, driving free cash flow to negative $7.6 billion on a trailing basis. Fiscal 2026 capex is guided near $200 billion. Long-term debt climbed to $119.1 billion from $65.6 billion, raising interest expense as tariffs, fuel inflation, and an 80 basis point FX headwind weigh on Q3.
Retail investor sentiment on Reddit has drifted into bearish territory around a $4 billion Bezos share disposition. Management has laid out data-center economics that break even in under three years on server outlay, with 30-plus years of subsequent monetization, and most AI capacity is already contracted for at least five-year terms. Our bear case still puts the stock at $292.16, a modest gain from here.
How Amazon Compares to Microsoft and Alphabet Microsoft (NASDAQ:MSFT) trades at a trailing P/E of 27 with Azure growth of 43% in its most recent quarter, still ahead of AWS but decelerating relative to Amazon’s reacceleration. Microsoft’s $678 billion commercial RPO exceeds AWS backlog, so a modest discount for Amazon’s slower cloud growth is warranted, though narrower than the current gap.
Alphabet (NASDAQ:GOOGL) grew Google Cloud 82% to $24.77 billion in Q2 2026, faster than AWS on a smaller base, and trades meaningfully cheaper than AMZN on earnings. Amazon carries the highest trailing multiple of the three, but AWS reacceleration plus a $19.8 billion ads business the others can only partially match justifies the premium implied by our target.
Amazon Price Prediction 2026-2030 Our 24/7 Wall St. price target of $341.77, buy rating, and 90% confidence reflect a rare setup: AWS growth is accelerating into a capex cycle already contracted well into 2028.
The thesis holds so long as AWS growth stays above 30% and operating margin holds near 39%. The thesis weakens if capex intensity forces further debt issuance without matching backlog growth. On today’s evidence, the risk/reward skews favorable in our model.
Year 24/7 Wall St. Price Target 2026 $288 2027 $342 2028 $410 2029 $485 2030 $570 These projections assume AWS continues executing on its AI infrastructure buildout and advertising sustains 20%-plus growth. Significant upside or downside could result from Trainium adoption at third-party data centers or a sharper capex overhang.
Contact [email protected] for any questions or corrections.
Amazon zpřístupní Alexa+ zdarma na kompatibilních Fire TV v USA i bez Prime. Asistent přidá konverzační vyhledávání, ovládání chytré domácnosti a doporučení s AI.
AI is coming to your TV, whether you want it or not.
On Wednesday, Amazon said its AI assistant, Alexa+, will be rolled out to all compatible Fire TV devices in the U.S. for free, whether or not the customer has a Prime subscription. The update brings conversational search, smart home controls, and AI-powered recommendations, the company says.
Previously, Alexa+ cost $19.99 per month for anyone who didn’t have an Amazon Prime membership, and was initially made available to the new Fire TV devices the company announced last fall.
Now, Amazon says that everyone will be upgraded to Alexa+ automatically. They won’t need to download an app or sign up for a subscription. Compatible devices include all the current-generation Amazon Fire TV Sticks, the Fire TV Cube, Amazon Ember smart TVs, and other smart TVs that have Alexa+ built in, including Hisense and Panasonic.
The move follows an industrywide push to make AI services available on more consumer electronic devices, often through non-optional upgrades like this. Google, for instance, rolled out Gemini to its Google TV platform earlier this year, replacing simple search features with AI-powered conversational modes. Roku upgraded its voice assistant to AI last year, too.
The companies point to metrics like time spent with the features to suggest positive consumer adoption trends. For instance, Amazon says that Alexa+ customers now have nearly twice as many conversations on Fire TV as they did with the original Alexa, which apparently suggests that customers with Alexa+ are no longer using their TV only as a lean-back source of entertainment, and are instead engaging with the AI, too.
Whether or not that’s a good thing is debatable.
Amazon says that with Alexa+, users don’t have to ask for shows by title, but can instead ask for suggestions based on other factors such as theme, age, or popularity — for example, “a top-rated thriller” or “a historical drama with a strong female lead.”
The AI bot can also help customers manage and control their smart home, including displaying their Ring camera feeds on the TV.
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Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
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Česká národní banka ve 2. čtvrtletí zvýšila svou pozici v Amazon.com o 4,7 % na 2 786 316 akcií. Amazon je tak její 4. největší pozice s hodnotou 664,1 milionu USD.
Czech National Bank raised its position in Amazon.com, Inc. (NASDAQ:AMZN) by 4.7% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,786,316 shares of the e-commerce giant’s stock after acquiring an additional 125,832 shares during the quarter. Amazon.com accounts for about 3.6% of Czech National Bank’s investment portfolio, making the stock its 4th largest holding. Czech National Bank’s holdings in Amazon.com were worth $664,091,000 at the end of the most recent reporting period.
A number of other hedge funds also recently made changes to their positions in AMZN. Vanguard Group Inc. increased its stake in Amazon.com by 1.1% during the 1st quarter. Vanguard Group Inc. now owns 832,274,556 shares of the e-commerce giant’s stock worth $158,348,557,000 after buying an additional 8,913,959 shares during the period. State Street Corp lifted its holdings in Amazon.com by 1.8% in the 4th quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant’s stock worth $89,708,913,000 after buying an additional 6,971,680 shares in the last quarter. Geode Capital Management LLC boosted its position in Amazon.com by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 225,120,994 shares of the e-commerce giant’s stock valued at $51,753,622,000 after buying an additional 2,479,324 shares during the last quarter. Norges Bank purchased a new position in Amazon.com in the 4th quarter valued at about $32,868,735,000. Finally, Auto Owners Insurance Co grew its stake in shares of Amazon.com by 27,376.7% during the fourth quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant’s stock valued at $2,272,397,000 after acquiring an additional 98,090,585 shares in the last quarter. Hedge funds and other institutional investors own 72.20% of the company’s stock.
Amazon.com Trading Down 0.7% Shares of NASDAQ AMZN opened at $259.45 on Wednesday. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. The stock’s 50 day moving average price is $248.53 and its two-hundred day moving average price is $238.89. Amazon.com, Inc. has a 52-week low of $196.00 and a 52-week high of $287.20. The stock has a market capitalization of $2.80 trillion, a P/E ratio of 20.87, a PEG ratio of 1.75 and a beta of 1.45.
Amazon.com (NASDAQ:AMZN – Get Free Report) last issued 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. 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 during the quarter, compared to analyst estimates of $197.03 billion. During the same quarter last year, the firm earned $1.68 EPS. The business’s revenue was up 19.6% on a year-over-year basis. On average, analysts anticipate that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year. Amazon.com News Roundup Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Bullish AWS outlook: Morgan Stanley reiterated its bullish view and said AWS could eventually become a $1 trillion annual-revenue business if Amazon successfully converts AI capacity into durable cloud demand. The firm maintained a $335 price target. Amazon’s $500 Bull Case Puts AWS Under Massive Pressure Positive Sentiment: Expanded data-center investment: Amazon raised its planned Louisiana investment to approximately $18 billion and added a third campus. Securing power, water and transmission capacity could support AWS expansion and AI workloads, although it will increase near-term capital requirements. Amazon Raises Louisiana Investment To $18 Billion, Adds Third Data Center Campus Positive Sentiment: AI and retail initiatives: Amazon’s conversational shopping tools and AI-powered advertising are reported to be increasing product discovery, advertiser returns and retail volumes. These efforts could strengthen both e-commerce monetization and AWS demand. Amazon Thinks AI Is About to Change the Way We Shop Positive Sentiment: Institutional support and logistics expansion: Baupost, Coatue and Appaloosa added to Amazon positions, while Third Point’s 10% reduction appeared to be a modest rebalance rather than a full exit. Amazon also holds warrants representing about 12% of Einride, which is expanding its electric freight network with 500 Tesla Semi trucks. A Star Investor Just Trimmed Amazon Neutral Sentiment: Mixed hedge-fund signals: Q2 filings showed major investors making sharply different moves, including sizable purchases by Viking and Druckenmiller’s Duquesne alongside reductions by Bridgewater and others. The filings support interest in AMZN but do not establish a uniform institutional view. Amazon Sees Heavy Hedge Fund Activity in Q2 Negative Sentiment: AI spending and financing concerns: Amazon is part of a broader hyperscaler borrowing surge to fund AI infrastructure, while analysts warn that elevated capital expenditures could depress free cash flow and raise depreciation expenses before returns are proven. Rival CoreWeave also highlights the risk that some high-margin AI workloads may bypass AWS. Negative Sentiment: Project and regulatory risks: A proposed $10 billion Houston data-center campus faces scrutiny over secrecy and tightening Texas rules. Separately, concerns about emissions from gas plants supporting AI data centers could increase regulatory and reputational pressure. Amazon’s $10B Houston Data Center Project Hits Snags Insider Activity In other Amazon.com news, VP Shelley Reynolds sold 2,363 shares of Amazon.com stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $262.38, for a total value of $620,003.94. Following the completion of the transaction, the vice president owned 119,780 shares of the company’s stock, valued at $31,427,876.40. The trade was a 1.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the business’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the sale, the senior vice president owned 41,190 shares of the company’s stock, valued at approximately $11,060,750.70. The trade was a 18.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 62,650 shares of company stock valued at $16,535,457 over the last three months. 8.90% of the stock is currently owned by company insiders.
Wall Street Analysts Forecast Growth A number of analysts have recently issued reports on AMZN shares. Rosenblatt Securities lifted their target price on Amazon.com from $332.00 to $345.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Bank of America increased their price target on Amazon.com from $310.00 to $320.00 and gave the company a “buy” rating in a report on Friday, July 31st. UBS Group set a $318.00 price objective on Amazon.com and gave the company a “buy” rating in a research note on Friday, July 31st. Wolfe Research restated an “outperform” rating and set a $315.00 price objective on shares of Amazon.com in a report on Friday, July 31st. Finally, Susquehanna reaffirmed a “positive” rating and issued a $325.00 target price (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Amazon.com currently has an average rating of “Moderate Buy” and a consensus price target of $322.56.
Read Our Latest Report on Amazon.com
Amazon.com Company Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
See Also Five stocks we like better than Amazon.com The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond 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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Millions more people may be able to get smaller, lightweight Amazon packages delivered by drones by the end of the year under a plan the company announced Thursday to expand the airborne shipping to suburban areas in nearly 500 U.S. cities.
Customers could receive the drone deliveries in as fast as 30 minutes, Amazon said in a news release. The drones can carry packages up to 5 pounds.
The plan will intensify the battle between Amazon and Walmart to provide consumers with the fastest delivery times. Both giants rely on a mix of drones and drivers to deliver everything consumers have ordered.
Amazon’s plan would expand its drone delivery operation more than sixfold nationwide into hundreds of new communities, including the Chicago, Atlanta, Cleveland and Boise metro areas. The drones will primarily fly in the suburbs well away from skyscrapers and major airports that could cause problems.
Drone delivery is growing fast but remains a small factorHundreds of thousands of packages have already been delivered by Amazon drones this year, but even after this expansion drones will still only handle a fraction of the hundreds of millions of package deliveries each year. In addition to only being able to carry 5 pounds, the drones Amazon builds face countless challenges from tree cover to landscaping and inflatable pools that can make it hard to find a good drop zone.
There are also regulatory hurdles to overcome in every community where Amazon wants to set up operations. Noise concerns also pose a potential challenge.
“It’s still an experiment. It’s still in test and learn mode,” said Sucharita Kodali, who is a retail analyst with Forrester.
The novelty of drone delivery may attract orders at firstInitially, consumers might order something delivered by drone because they are curious about it, but it’s not clear how often they will continue to use the service, and Amazon is still working out the economics, Kodali said.
The service will be free for Amazon Prime members who are ordering more than $50 worth of goods, but smaller orders will cost members $2.99. Non-members will pay $4.99 for drone delivery.
Prime members get free deliveries while non-members pay a flat fee if the shipment is under $35 for standard delivery or up to $12.99 for same‑day shipments when available.
Kodali said drones could prove more useful for certain light-weight deliveries that are needed urgently like prescription medications.
DoorDash and other delivery companies also are experimenting with using drones to deliver foods and other goods.
Amazon CEO believes drone delivery will be part of the mixAmazon’s CEO Andy Jassy told shareholders in his annual letter in April that the company has learned a great deal by flying drones in 11 sites across Arizona, Florida, Kansas, Louisiana, Michigan, Nebraska, and Texas. In each location, the drones launch from an Amazon warehouse and cover about 175 square miles, so it takes multiple drone launching locations to serve a large metro area.
“Prime Air now has a design that’ll scale, plans to serve communities with 30 million customers by year-end, and expects to deliver half a billion packages by the end of this decade (with an aim to deliver inside 30 minutes),” Jassy wrote.
Amazon is also continuing to invest in its warehouses, smaller fulfillment centers closer to customers and its fleet of trucks as the company competes to deliver packages within minutes or hours instead of just days.
Amazon is already certified by the Federal Aviation Administration and the company has been awarded waivers to fly drones beyond the line of sight of the pilots. Amazon has invested in safety measures to help drones avoid collisions with anything else in the sky while they are making deliveries.
The federal government has proposed a rule that would allow more drone operators to fly beyond the horizon, but that hasn’t been finalized yet.
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Amazon drží warranty na 25,2 milionu akcií Einride, zhruba 12 % firmy, které se uvolňují s nákupy přepravních služeb. Einride zároveň oznámila nasazení 500 Tesla Semi pro Amazon a další zákazníky.
Einride plans to deploy 500 Tesla Semis for Amazon and other customers. (Tesla Photo) Amazon is quietly accumulating a stake in Einride, the Swedish electric trucking company that said Tuesday it will deploy 500 Tesla Semis for Amazon and other customers.
Einride’s SEC filings show Amazon holding warrants for 25.2 million shares — about 12% of the company — that vest as Amazon buys freight services. The company’s financial report Tuesday, its first since going public in June, has the warrants on its books for the first time.
At the same time, Einride is relying heavily on Amazon for growth, forecasting a 60% to 73% year-over-year revenue increase in the second half, “fueled by the Amazon ramp and other deployments in the U.S. and Europe,” as the company said in its earnings release.
Amazon announced in April that Einride would deploy 75 electric trucks with charging at five U.S. sites in its middle-mile network, the leg between warehouses and delivery stations.
Tesla Semi rollout: Einride also said Tuesday it will deploy 500 Tesla Semis across North America, calling it the largest deployment of Tesla’s electric big rigs in the world to date. The trucks will serve Amazon and other Einride customers on freight corridors in California, Texas, New Jersey, Illinois and Georgia, rolling out in phases over two years beginning in September, financed by third parties.
This appears to be the first time Tesla Semis will haul Amazon freight. PepsiCo runs the largest fleet of Tesla Semis, close to 100 trucks, but Amazon has never been a named user.
Amazon’s electric semis: Amazon has been turning to other manufacturers to electrify its freight network beyond the last-mile delivery vans it buys from Rivian. It deployed nearly 50 Volvo electric semis at Southern California ports and ordered more than 200 electric big rigs from Mercedes-Benz for Europe, part of a pledge to reach net-zero carbon across its operations by 2040.
Einride, for its part, doesn’t sell trucks. It buys and finances them, hires the drivers or contracts carriers, builds the charging infrastructure, and hauls a customer’s freight for a fee — using its own software, called Saga AI, to plan routes around charging windows and battery range.
The pitch to a shipper like Amazon is that it gets electric trucking capacity without purchasing vehicles itself or creating electric charging infrastructure.
Long-term autonomy: Einride is also one of a small group of companies running fully driverless trucks in commercial service in the U.S., with Level 4 autonomous vehicles operating in Ohio and more than 5,400 driverless hours logged for customers as of June 30.
The trucks hauling Amazon’s freight, however, have drivers, as will the Tesla Semis, for now. Tesla CEO Elon Musk said on the company’s July earnings call that self-driving capability for the Semi is about a year away. That timeline would fall inside Einride’s two-year rollout.
Einride’s Amazon deal: Roozbeh Charli, the Einride CEO, said on the earnings call Tuesday that the April announcement with Amazon brought a wave of new business.
The takeaway for customers about Einride was, “If these guys can handle the complexity of Amazon’s network, they can handle ours,” he said, explaining that there was “quite a lot of inbound” following the news.
Charli said customers rarely specify hardware, and that Einride selects truck platforms based on the routes and the data. That would suggest that Einride chose the Tesla Semis, not Amazon.
The Amazon warrants did not come up on the call. The terms have been technically public since April, buried in an exhibit to Einride’s merger filings with the SEC, but haven’t been previously reported, in part because Einride’s prospectuses refer to Amazon as “the Specified Party.”
Amazon’s financial arrangement with Einride follows a pattern.
The company struck a similar deal with Plug Power in 2017, taking warrants for up to 55.3 million shares that vested as Amazon bought fuel-cell equipment for its warehouses. Amazon invested in Rivian in early 2019, then ordered 100,000 electric delivery vans from the startup later that year. The company owns about 12% of Rivian today. Amazon and Einride did not immediately respond to questions about the arrangement.
Morgan Stanley vidí u Amazonu potenciál růstu ceny akcií na 500 USD do konce roku 2027, pokud AWS dál poroste díky AI a infrastruktuře. Cílová cena byla zvýšena na 335 USD z 330 USD.
Amazon’s ambition to turn its cloud computing business into a $1 trillion-a-year revenue engine is still a long way from becoming reality, but the pursuit of that target could create substantial value for shareholders, according to Morgan Stanley analyst Brian Nowak.
Amazon Chief Executive Andy Jassy recently said AWS could "very possibly" become a business generating $1 trillion in annual revenue, highlighting the scale of the opportunity management sees in cloud computing and artificial intelligence.
"We long believed AWS could become a few hundred billion dollar revenue business," Amazon said, "and now believe it'll be at least double that, and very possibly be a $1 trillion annual revenue business for us in time with very appealing accompanying free cash flow and return on invested capital."
The company has also sought to reassure investors that the expansion of AI-related workloads will not necessarily come at the expense of profitability.
"We've done this before in the first era of cloud computing, just over a longer time horizon where demand built more gradually than it has in AI. But we see the margins and returns in AI tracking what we saw with core at the same point of evolution. Actually a little ahead."
Amazon Web Services, the company’s cloud division, is currently generating about $170 billion in annualized sales.
That means revenue would have to increase almost sixfold for AWS to reach the $1 trillion milestone.
While AWS is unlikely to reach $1 trillion in revenue anytime soon, Nowak believes Amazon’s shares could benefit considerably as the company scales its cloud infrastructure.
In a recent note, the Morgan Stanley analyst outlined a scenario in which AWS could reach $1 trillion in annual revenue within the next eight to 10 years.
He also sees a possibility for Amazon’s overall earnings before interest and taxes to reach $500 billion over the same period.
Such a growth trajectory could support a share price of $500 by the end of 2027, according to the model.
That would be roughly double Amazon’s recent share price of around $261.
Morgan Stanley has already raised its Amazon price target to $335 from $330 following the company’s second-quarter earnings while reiterating an Overweight rating on it.
The revised target represents roughly 28% upside from Amazon’s Monday close of $261.31.
The more immediate investment case therefore does not depend on AWS reaching its ultimate $1 trillion target.
Instead, investors could benefit from continued cloud growth, rising AI demand and the resulting expansion in Amazon’s earnings.
The rapid development of artificial intelligence has created an enormous need for computing power, putting data-center capacity at the center of Amazon’s long-term growth strategy.
Nowak estimates Amazon will add 6 gigawatts of capacity in 2026 and another 8 gigawatts in 2027.
His longer-term model assumes AWS could continue adding roughly 8 gigawatts annually after that.
He described the assumption as a "reasonable range," while acknowledging that forecasting infrastructure additions several years into the future is considerably more difficult.
Amazon has not disclosed its precise current data-center capacity.
Jassy said during an earnings call for the company’s September quarter that Amazon had added 3.8 gigawatts of data-center capacity over the preceding 12 months.
More recently, Jassy reiterated that Amazon is on pace to double its power capacity by the end of 2027 compared with 2025 levels.
The ability to bring additional capacity online will be particularly important if AI demand continues to expand rapidly.
Without enough computing infrastructure, AWS may struggle to convert strong customer demand into corresponding revenue growth.
Nowak believes capacity is only part of the equation. The other major variable is how effectively AWS can monetize every watt of computing power it adds.
According to his estimates, each incremental watt currently generates about $8 in revenue for Amazon.
If AWS can increase that figure to $12 per watt, the company could potentially reach $1 trillion in annual revenue as early as 2035.
Technological advances could help cloud companies generate more economic value from existing power resources.
Improvements in computing efficiency, software, chip performance and data-center utilization could all increase the revenue generated from each unit of electricity.
That makes the economics of AI infrastructure just as important as the sheer amount of capacity Amazon can build.
The $1 trillion projection remains highly dependent on continued growth in demand for AI computing.
"As long as innovation and demand for [generative AI] tools continue to scale, we still believe each hyperscaler's ability to bring on compute capacity is the key factor driving forward revenue growth," Nowak wrote.
Beyond 2028, however, Amazon could encounter a range of constraints.
Its expansion will depend on the availability of servers and racks, improvements in power efficiency, regulatory approvals and the speed at which new data centers can be constructed.
There is also uncertainty over how long the current pace of AI investment can continue.
DA Davidson analyst Gil Luria told MarketWatch that any projection of $1 trillion in AWS revenue is "bold speculation."
He believes AWS could reasonably grow by 40% to 50% this year, but warned that "extrapolating beyond that is more than ambitious."
"There is no hard information Mr. Jassy or anybody else has to quantify a market that didn't even exist three years ago," Luria said.
For Amazon investors, the trillion-dollar AWS target is therefore better viewed as a long-term indication of the company’s ambitions than as a near-term earnings forecast.
Even if AWS falls short of that figure, sustained AI demand, expanding infrastructure and better monetization of computing capacity could still make the cloud division a powerful driver of Amazon’s future growth.
On a recent episode of The Investor’s Podcast (838), Daniel Mahncke and Shawn O’Malley argued that Amazon offers more asymmetric upside than its hyperscaler peers: “Amazon has literally built one of the largest chip businesses in the world in the last couple of years, and barely anyone has even noticed.”
Amazon’s silicon business now exceeds a $25 billion annualized run rate, is growing at a triple-digit percentage, and has expanded from about a $10 billion run rate in under a year.
The $25B Chip Business Hiding Inside AWS Amazon (NASDAQ:AMZN | AMZN Price Prediction) has scaled its custom silicon operation faster than most investors realize. On the Q2 FY2026 earnings call, CEO Andy Jassy told analysts AWS grew 36.7% year over year, the fastest growth in 18 quarters. On the show, the hosts suggested the current $25 billion run rate for the chips business “could even be double that or closer to $50 billion” if Amazon began selling chips externally.
Amazon’s Trainium2 is fully subscribed with 1.4 million chips landed, powering the majority of inference on Bedrock. Project Rainier is the world’s largest operational AI compute cluster with more than 500,000 Trainium2 chips training Anthropic’s Claude, and OpenAI committed to roughly 2 GW of Trainium capacity beginning 2027. On the CPU side, Graviton is used by 98% of the top 1,000 EC2 customers.
AWS’s $496B Backlog Supports the Silicon Expansion AWS revenue reached $42.2 billion in Q2 FY2026, with operating income of $16.6 billion and a 39% operating margin. Even more exciting, the company’s $496 billion backlog tells the forward story, growing at triple-digit rates year over year.
Amazon’s capital spending is climbing to match. Q2 CapEx was $53.1 billion, with roughly $200 billion planned for FY2026. Amazon’s CEO Andy Jassy has framed AWS as capable of becoming “a trillion-dollar annual revenue business for us in time.”
Google’s AI Rally Has Left Amazon Far Behind Alphabet (NASDAQ:GOOGL) offers a natural comparison, with its own custom TPU stack and hyperscale cloud. Google Cloud accelerated to 82% growth in Q2 FY2026, reaching $24.77 billion, with Q2 CapEx of $44.9 billion. The show hosts flagged that both companies are guiding to roughly $200 billion in CapEx and that free cash flow has turned negative as a result.
What differs is the market’s reception. At the time of recording, Alphabet was up roughly 75% while Amazon was up just 0.5% over 12 months. The hosts laid out the case for Amazon stock today, saying: “Since Amazon has benefited less from the AI hype cycle, there’s probably less for the stock to lose in terms of giving up gains,” and “It does feel like [Amazon] has a lot more room to catch up.”
Amazon’s Valuation Creates an Asymmetric AI Setup After adjusting for a $17 billion markup due to Amazon’s Anthropic stake, Amazon trades closer to 17-18x operating cash flow, which the hosts called “pretty attractive for a company of that quality.” The forward P/E sits at 28.3, with analyst consensus firmly bullish at 59 buy or strong buy ratings versus 3 hold and no sell ratings, and a target price of $327 vs a current share price of $260.
Amazon’s custom-silicon business, Trainium and Graviton, has become a core part of AWS. This business supports Anthropic, has attracted a major OpenAI commitment, and generates more than $25 billion in annualized revenue. The risk is that Amazon must spend roughly $200 billion this year to satisfy an AI demand curve that remains difficult to forecast.
Yet with Amazon trailing dramatically behind Alphabet, investors may be getting one of the world’s fastest-growing chip franchises without paying the same AI premium attached to its peers.
Contact [email protected] for any questions or corrections.
Amazon z investice do Anthropic vykázal přes 50 miliard USD v neprovozním zisku před zdaněním z přecenění podílu, což výrazně zvedá jeho zisk. Podíl má účetní hodnotu zhruba 190 miliard USD.
Amazon's (AMZN -0.51%) investment in Anthropic has become something more than a side bet for the tech giant. In recent quarters, the company has reported over $50 billion in non-operating pretax income primarily tied to revaluations of its Anthropic stake, a contribution big enough to shift its headline profit numbers on its own. Amazon has put about $13 billion into Anthropic so far, and its filings show that stake to have a carrying value near $190 billion as Anthropic's private-market valuation has climbed toward the trillion-dollar mark.
Image source: Getty Images.
That financial stake sits atop a deep commercial partnership. Anthropic has agreed to spend more than $100 billion over 10 years on AWS technologies and Amazon's custom Trainium chips, locking in up to 5 gigawatts of compute capacity to train and run Claude models on Amazon's cloud. The result is that Amazon benefits twice -- once from the mark-to-market gains on its equity and again from Anthropic's long-term commitment to spend heavily with AWS.
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Alphabet's (GOOG -0.61%) (GOOGL -0.55%) exposure to Space Exploration Technologies (SPCX +4.45%) looks different now that the rocket company is public. SpaceX completed the largest IPO in history on June 12, pricing shares at $135 and entering the market with a valuation near $1.8 trillion. The company has more recently traded in the $1.7 trillion to $1.9 trillion range as investors have digested its first earnings report, which was released earlier this month. Alphabet's original $900 million investment from 2015 has turned into a mid-single-digit-percentage stake worth roughly $80 billion to $90 billion at recent prices, a gain of more than 90 times that initial outlay.
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The big change for investors is transparency. SpaceX is no longer a black box on Alphabet's balance sheet. The stake is now a liquid asset with a clear market value that fluctuates daily. Alphabet can choose to keep the shares as a long-term bet on commercial space and space-based AI compute, or sell part or all of the stake to fund new investments in AI.
The SpaceX IPO could be good or bad for Alphabet, depending on your perspective. The market's shifting view of SpaceX can inject more volatility into Alphabet's reported earnings, and may make it harder for investors to separate Alphabet's core operating performance from the market noise around the rocket company's stock. On top of that, much of Alphabet's multibillion-dollar position is still locked up, as the phased release of insiders' shares will continue over the next year or so.
So Alphabet management has limited flexibility to realize those gains or reduce its exposure even if SpaceX's share price slides.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool has a disclosure policy.
Pershing Square dál drží Amazon jako čtvrtou největší pozici a čeká, že zisky firmy porostou o více než 20 % ročně díky AI a e-commerce. AWS v posledním čtvrtletí zrychlil růst tržeb na 37 % meziročně.
Bill Ackman's Pershing Square Capital Management started selling Alphabet (GOOG -0.66%) (GOOGL -0.73%) in the fourth quarter of 2025 while continuing to hold a large stake in Amazon (AMZN -0.82%) and other tech stocks. Ackman also bought a new position in Microsoft. In a post on X dated May 16, 2026, Ackman explained that he sold the Alphabet position to free up cash for Microsoft. But he also apparently sees better prospects in Amazon.
Pershing Square's mid-year update to investors reiterated its expectation that Amazon will grow its earnings at more than 20% annually, driven by opportunities in artificial intelligence (AI) and continued e-commerce growth.
While Pershing Square trimmed its Amazon position in Q2, the position still accounts for about 10% of the firm's reported assets on its SEC Form 13F, making it the fourth-largest holding. Bill Ackman's thesis behind the investment continues to play out almost exactly as he predicted when he originally bought the stock in April 2025.
Bill Ackman of Pershing Square Capital. Image source: Getty Images.
Amazon is performing as expected Pershing Square's investment case for Amazon is centered on the company's two growth engines: Amazon Web Services (AWS) and e-commerce. At the time of the initial investment, Ackman expected rising demand for artificial intelligence (AI) tools on AWS to potentially reaccelerate growth. And that's exactly what happened.
AWS reported 17% year-over-year revenue growth in Q2 2025 when Ackman initially bought the stock. In the most recent quarter, growth accelerated to 37% -- its fastest pace in more than four years.
Amazon's total revenue rose 20% year over year in the second quarter, while operating income jumped 43% to $27 billion. That also supports Ackman's view that the retail business has room for margin expansion.
Amazon has been investing in robotics and tightening inventory management to lift retail profitability -- and those improvements are showing up in operating income growth. Over time, operating profits could continue to climb, aided by advertising momentum and ongoing warehouse automation.
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Ackman expects Amazon to deliver high double-digit earnings growth Amazon stock has been weighed down by aggressive increases in capital spending to support the data center build-out. As a result of this spending, Amazon's free cash flow dipped to negative $8.8 billion in the second quarter.
Pershing Square sold about a quarter of its Amazon stake in Q2, but that doesn't appear to reflect a bearish view on the stock. Ackman's current view on Amazon was revealed in the firm's mid-year update released in August, in which it expressed belief that the market is underestimating Amazon's resilience and "significant growth runway." Ackman expects new data center capacity to be absorbed by AI inference workloads and earn attractive returns over time.
The firm likely sold some of its Amazon position to make room for other new positions in Visa, Mastercard, S&P Global, and Netflix. But this doesn't mean Ackman has turned bearish on the cloud computing leader.
Ackman still sees Amazon compounding earnings at over 20% annually, which is consistent with the Wall Street consensus. The stock trades around 22x forward earnings, which is not expensive for this level of earnings growth, and could support market-beating gains assuming Amazon delivers on those expectations.
John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Mastercard, Microsoft, Netflix, S&P Global, and Visa. The Motley Fool has a disclosure policy.
AMS Capital Ltda v 1. čtvrtletí snížila podíl v Amazon.com o 37,6 % a prodala 58 778 akcií. Po prodeji držela 97 627 akcií v hodnotě 20,831 milionu USD.
AMS Capital Ltda reduced its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 37.6% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 97,627 shares of the e-commerce giant’s stock after selling 58,778 shares during the period. Amazon.com accounts for about 8.1% of AMS Capital Ltda’s investment portfolio, making the stock its 4th largest position. AMS Capital Ltda’s holdings in Amazon.com were worth $20,831,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other institutional investors and hedge funds also recently added to or reduced their stakes in AMZN. Red Crane Wealth Management LLC increased its holdings in shares of Amazon.com by 2.3% in the 1st quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant’s stock worth $346,000 after acquiring an additional 38 shares during the period. Robinson Smith Wealth Advisors LLC increased its position in Amazon.com by 0.7% in the 1st quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant’s stock valued at $1,147,000 after acquiring an additional 40 shares during the period. Sfam LLC grew its stake in shares of Amazon.com by 3.4% in the first quarter. Sfam LLC now owns 1,224 shares of the e-commerce giant’s stock worth $255,000 after purchasing an additional 40 shares in the last quarter. Measured Risk Portfolios Inc. grew its stake in shares of Amazon.com by 3.4% in the first quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant’s stock worth $251,000 after purchasing an additional 40 shares in the last quarter. Finally, CoreFirst Bank & Trust increased its holdings in shares of Amazon.com by 1.1% during the first quarter. CoreFirst Bank & Trust now owns 3,620 shares of the e-commerce giant’s stock valued at $754,000 after purchasing an additional 40 shares during the period. 72.20% of the stock is currently owned by institutional investors and hedge funds.
Analysts Set New Price Targets A number of analysts have recently weighed in on the stock. Oppenheimer reaffirmed an “outperform” rating on shares of Amazon.com in a research note on Friday, July 31st. Benchmark boosted their target price on Amazon.com from $370.00 to $400.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Rosenblatt Securities upped their target price on Amazon.com from $332.00 to $345.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Pivotal Research reaffirmed a “buy” rating and set a $333.00 price target (up from $320.00) on shares of Amazon.com in a research note on Friday, July 31st. Finally, Cantor Fitzgerald reiterated an “overweight” rating and set a $320.00 price target (down from $330.00) on shares of Amazon.com in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $322.56.
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More Amazon.com News Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Institutional buying supports sentiment. Thrive Capital disclosed a roughly $215 million Amazon position, while Baupost Group added 625,100 shares and Dodge & Cox increased its holding by approximately 1.6 million shares. Thrive Capital discloses Amazon stake Positive Sentiment: AWS remains the central bullish catalyst. Commentary points to accelerating AWS growth for five consecutive quarters, a substantial backlog and customer demand extending into 2028. Amazon Web Services also became AppFolio’s preferred cloud provider, adding evidence of enterprise demand. AppFolio selects AWS Positive Sentiment: New growth opportunities are expanding. Amazon won a Space Force communications contract, while its AI infrastructure spending is helping drive demand for data-center and semiconductor suppliers. Analysts cited in recent coverage remain bullish on both Amazon and Alphabet. Amazon wins Space Force contract Neutral Sentiment: Valuation remains a debate. Amazon is viewed favorably versus some large-cap peers, but coverage notes that its forward earnings multiple is higher than its trailing multiple. That may reflect expected earnings growth, though it leaves less room for execution disappointments. Negative Sentiment: Retail data raised demand concerns. U.S. retail sales fell in July, with online spending declining after Amazon’s summer sales event. Higher fuel and operating costs may also pressure big-box retailers and consumer purchasing power. July retail sales decline Negative Sentiment: AI investment brings financial and execution risk. Amazon and other hyperscalers are issuing significant debt to fund infrastructure expansion, increasing concerns about returns on spending and potential pressure on future profits. Amazon’s lack of a dividend may also limit appeal for income-focused investors. Negative Sentiment: Twitch backlash adds reputational risk. Twitch’s decision to use livestream content for Amazon AI training, with the feature reportedly enabled automatically, has angered creators and could create privacy, regulatory and user-retention concerns. Twitch AI data-sharing backlash Insider Buying and Selling at Amazon.com In other Amazon.com news, CEO Matthew S. Garman sold 15,467 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $263.40, for a total transaction of $4,074,007.80. Following the completion of the transaction, the chief executive officer owned 14,159 shares in the company, valued at approximately $3,729,480.60. This trade represents a 52.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the company’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $262.38, for a total transaction of $620,003.94. Following the completion of the sale, the vice president directly owned 119,780 shares in the company, valued at approximately $31,427,876.40. This represents a 1.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 62,650 shares of company stock worth $16,535,457. Company insiders own 8.90% of the company’s stock.
Amazon.com Price Performance AMZN stock opened at $262.65 on Friday. The company’s 50-day moving average price is $247.91 and its two-hundred day moving average price is $238.66. The firm has a market cap of $2.83 trillion, a P/E ratio of 21.13, a P/E/G ratio of 1.76 and a beta of 1.45. 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.
Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its quarterly 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. The company had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The company’s revenue for the quarter was up 19.6% compared to the same quarter last year. During the same quarter last year, the company posted $1.68 EPS. On average, analysts anticipate that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.
Amazon.com Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
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Koalice odborů tlačí na schválení zákona Delivery Protection Act, který by v New Yorku nutil Amazon a další logistické firmy zaměstnávat řidiče a skladníky místo subdodavatelů. Starosta Zohran Mamdani zákon podpořil.
ToplineA coalition of Amazon Teamsters, the Alliance for a Greater New York and the Retail, Wholesale and Department Store Union rallied at New York City Hall to push passage of the Mayor Zohran Mamdani-backed “Delivery Protection Act” that would require Amazon to employ all last-mile delivery drivers in the city rather than rely on subcontractors.
NEW YORK, NEW YORK - JULY 3: New York City Mayor Zohran Mamdani delivers a speech to mark the 250th anniversary of the United States of America at City Hall on July 3, 2026 in New York City. (Photo by Anna Connors - Pool/Getty Images)
Getty Images
Key FactsThe Delivery Protection Act would prohibit Amazon, FedEx and other logistics companies from using third-party contractors for last-mile deliveries and core warehouse services throughout the five New York City boroughs.
Joining the Teamsters in support of the Act are the AFL-CIO-affiliated New York City Central Labor Council and a supermajority of city council members.
Opposition comes from a broad-based business coalition—Amazon, FedEx, logistics and trucking firms, all five borough chambers of commerce, the National Federation of Independent Businesses, Tech: NYC, the Supply Chain Federation, the Trucking Association of New York, the Five Borough Jobs Campaign and others.
A study commissioned by the Five Borough Jobs Campaign estimated passage would increase annual delivery costs to New York households by $664 and threaten more than 10,000 city workers.
With the bill pending a City Council vote, supporters have intensified their efforts to push the vote forward after Mayor Mamdani threw his support behind it—calling Amazon’s contractor-based delivery model exploitative and a danger to NYC workers, drivers and pedestrians.
Key BackgroundFirst introduced last September by Queens council member Tiffany Cabán and carried over into 2026, the Delivery Protection Act would require a license to operate any last-mile facilities in the city and mandate that all delivery and warehouse hubs operate with employees not contract workers. Supporters of the Act claim that Amazon uses its third-party Delivery Service Providers model to “underpay workers, ignore unsafe working conditions, and shield itself from accountability when it breaks the law or endangers communities.”
Crucial Quote“Corporations like Amazon build billion-dollar business models by insulating themselves from accountability through a system of exploitative subcontracting,” said Mayor Mamdani. Calling the Delivery Protection Act a commonsense regulation to protect workers, he added, “It’s time to end the subcontracting model that puts profits over people and build an economy that works for working New Yorkers.”
Amazon Defends Its DSP Business ModelAmazon argues the Delivery Protect Act would negatively impact more than 40 Delivery Service Providers and threaten over 5,000 jobs at these small business partners. In testimony submitted in April, the company said that DSP drivers earn an average of nearly $24 per hour in wages, with full-time drivers receiving health care coverage and paid time off that exceed city minimums. Many DSP firms also offer additional benefits, including retirement accounts and tuition reimbursement. Amazon also cited more than $2.5 billion invested in safety initiatives since 2019, including an in-person Last Mile Driver Academy that has trained over 180,000 drivers, camera-equipped delivery vans and more than 800 electric cargo bikes deployed in Manhattan and Brooklyn. If the Act passes, Amazon warned it may be forced to relocate its 10 distribution centers outside New York City, resulting in slower delivery times to customers.
Chief CriticThe Wall Street Journal Editorial Board argues that the Delivery Protect Act is a test case for the Teamsters and its allies to eliminate subcontracted delivery work nationwide. The board points to United Parcel Service laying off tens of thousands of workers, attributing the cuts in part to the cost of its 2023 Teamsters labor contract. It claims Amazon’s flexible and efficient third-party DPS network is now delivering many of the packages that unionized UPS drivers would previously have handled. Noting that the National Labor Relations Act prohibits subcontracted and independent contractors to unionize, the board wrote, “Abolishing the independent contracting model has been a longtime goal of the political left, and they don’t mind if they run over the little guy in the process.”
TangentAmazon has been at odds with the New York political establishment before. In 2019, Amazon scuttled plans to open a second NYC headquarters in Queens after opposition from Rep. Alexandria Ocasio-Cortez, state senators and local activists—a move that cost the city an estimated 25,000 high-paying jobs. At the time, Governor Andrew Cuomo blasted the decision, stating “a small group of politicians put their own narrow political interests above their community.”
Further ReadingAmazon Workers Rally at NYC City Hall as Delivery Bill Gains Momentum (Sourcing Journal)
Mamdani Wants to Deliver Amazon to the Teamsters (Wall Street Journal)
A Fight Brews Between Mamdani and Amazon Over Delivery Workers (New York Times)
Jeff Bezos prodal 1,2 milionu akcií Amazonu; při prodeji za tržní cenu by výnos přesáhl 4 miliardy USD. Prodej proběhl v rámci předem připraveného plánu Rule 10b5-1.
Jeff Bezos is dumping shares of Amazon (AMZN -0.94%), as it trades around its all-time high. The company's founder and executive chairman filed documents showing he sold 1.2 million shares of the stock last week, after another filing indicated he could sell up to 15 million shares in total. If he sold them at the market price at the time of filing, the total would exceed $4 billion.
That's a lot of cash, even for someone as wealthy as Bezos. Should Amazon shareholders consider lightening up their exposure to Amazon as well? Here's what investors need to know.
Jeff Bezos, Amazon Executive Chairman. Image source: Amazon.
Bezos' stock sale is part of a Rule 10b5-1 trading plan established last year. Such plans are prearranged well ahead of stock sales to prevent insiders from trading on nonpublic information. In other words, Bezos isn't seeing any signs that the stock is too expensive or that a sudden change in Amazon's fortunes is on the horizon.
In fact, Amazon appears to have a long runway ahead of it. Its retail operations are firing on all cylinders, with revenue climbing about 16% year over year across its North American and International segment last quarter. That was helped by shifting Prime Day from the third quarter to the second quarter, but still an impressive result. The segment's operating margin continues to expand, driven by strong advertising sales and Prime membership growth.
The core of Amazon, though, has become its cloud computing unit, Amazon Web Services. The company is spending tens of billions of dollars each quarter to build additional compute capacity, which has pushed its total free cash flow into negative territory over the past 12 months. While some investors have balked at all that spending, Amazon's results and outlook suggest it's a solid investment.
AWS revenue accelerated for the fifth straight quarter, climbing 37% year over year. What's more, operating margin expanded to 39.4% in the most recent quarter. Both trends could continue.
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Amazon's rapid increase in capital deployment should enable it to recognize its growing backlog more quickly in the coming quarters. Backlog reached $496 billion as of the end of the second quarter. Regarding margin, it should see expansion as more AI workloads move to Amazon's custom silicon, Trainium and Graviton, which produce better margins for Amazon and better price performance for its customers compared to traditional GPUs.
Amazon CEO Andy Jassy sees tremendous long-term potential for AWS. His comments during Amazon's second-quarter earnings call suggested it could become a $1 trillion annual revenue business. If it achieves just half of that, Amazon will generate hundreds of billions in free cash flow each year, sending the value of its shares significantly higher over time.
There's a reason Bezos still holds 880 million shares of Amazon, comprising the vast majority of his net worth. The outlook remains bright for the company.
It takes a lot for Elon Musk to admit he's wrong. A year ago, the leader of SpaceX and Tesla said that Anthropic would never be a leader in artificial intelligence (AI). Today, he has admitted this was incorrect, with Anthropic the fastest-growing AI start-up in the world, with annualized revenue estimated at double that of its competitor OpenAI.
For Musk, this means potential AI infrastructure revenue at SpaceX, which just signed a nice commitment from Anthropic. But there is another megacap technology company that may benefit even more from Anthropic's meteoric rise: Amazon (AMZN -0.94%).
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Massive cloud commitments
Amazon made an early bet to become the lead infrastructure backer for Anthropic, likely after its cloud competitor, Microsoft, did the same with OpenAI. Amazon has invested over $10 billion in Anthropic and has committed to investing a total of $33 billion in the start-up. In return, Anthropic is going to utilize Amazon Web Services (AWS) as its primary cloud provider, spending $100 billion or more with Amazon.
This could be highly meaningful for AWS, especially if Anthropic keeps up this growth trajectory and soon clears $100 billion in annualized revenue, eventually reaching hundreds of billions a year. Last quarter, AWS revenue grew 37% year over year to an annualized run rate of $169 billion. A lot of this growth is due to Anthropic.
On top of this revenue growth, Amazon holds an equity stake in Anthropic estimated at over 10% (the exact figure is not known today). If Anthropic goes public in the largest initial public offering (IPO) in history -- which it is reportedly preparing for later this year -- Amazon's stake could be worth something like $250 billion.
Elon Musk. Image source: The White House.
Is Amazon stock a buy because of Anthropic?
The appreciation of Amazon's stake in Anthropic will be a nice boost for Amazon, but the real value comes from Anthropic's commitments to AWS, including Amazon's homegrown computer chips. This will set the standard for other AI start-ups and Fortune 500 enterprises, leading to even more revenue growth in the years ahead.
Amazon management believes that AWS can eventually grow to $1 trillion in revenue. It may take a decade or longer for that to happen, but it gives the business a massive growth runway. Right now, Amazon trades at a market cap of $2.86 trillion. If Amazon grows its AWS revenue to $1 trillion, the stock may be worth multiples of that on its own, not even including the e-commerce and advertising businesses.
For its relationship with Anthropic and more, Amazon stock is worth buying right now.
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, and Tesla. The Motley Fool has a disclosure policy.
Twitch nově umožňuje vypnout používání vysílání k tréninku generativní AI Amazonu, ale tato volba je u všech účtů zapnutá ve výchozím nastavení. Tvůrci i diváci to ostře kritizují.
by Thomas Wilde on Aug 14, 2026 at 3:19 pmAugust 14, 2026 at 3:19 pm
(GeekWire File Photo) Amazon indicated for the first time this week that any video broadcast via its livestreaming platform Twitch could be used to train generative AI, unless users take steps to avoid it, which has caused a significant backlash from both audiences and content creators.
The story began with a post on the official Twitch Support account on X (formerly Twitter) which informed users of the existence of a new option on the Twitch dashboard. That option lets users opt out of Amazon using content on their channel to train generative AI.
That, in turn, served as a couple of additional implicit announcements: Amazon intends to feed Twitch content into its generative AI models, and this option is enabled by default for all Twitch accounts.. You have to actively turn it off or anything you broadcast via Twitch could be fed into “generative AI content models at Amazon.”
According to Twitch’s FAQ, the data gathered from Twitch may be used to train a future model “whose purpose is to generate or synthesize text, audio, images, or video.”
(To opt out of Amazon’s training on your own Twitch channel, go to the Settings menu, look for the “Training for Generative AI” section under Security and Privacy, and turn it off. Don’t be surprised if this takes more than one try, as several users have taken to social media to report that the training option likes to turn itself back on when you aren’t looking.)
Above, bottom: if you have a Twitch account, then as of Aug. 12, it has an option under Security and Privacy to allow you to opt out of your broadcasts being used as training data for an Amazon LLM. (Twitch screenshot) A follow-up stream from Twitch’s head of community, Mary Kish, poured some more gasoline on the flames. Kish aired a live interview with Mike Minton, chief product officer at Twitch, and Minton chose that moment to get uncommonly candid.
In response to viewers demanding to know why the AI settings on Twitch weren’t opt-in instead of opt-out, Minton said, “There’s an honest answer, and I think most of you can probably appreciate this. If it was opt-in, nobody would opt in.”
Kish and Minton made an additional point of drawing a distinction between AI-powered features that are already on Twitch, such as auto-captions, and the unspecified models that Amazon plans to use Twitch data to train.
“…I think our community has the reaction that I expected you guys to have, which is that you don’t like this,” Kish said. “Because this is industry standard, going other places [besides Twitch] won’t absolve you of this… it’s something that’s happening on livestreaming communities across the space.”
Twitch came out of the 2020 lockdowns in a period of massive growth, and for several years, accounted for roughly 80 to 90% of online livestreaming. Since then, however, its market share has steadily eroded. According to a July report by the Kyiv-based analytics firm StreamsCharts, YouTube Live and TikTok Live have both overtaken Twitch’s audience share, though Twitch does still handle nearly half of livestreamed video game content.
That, in turn, brings up some of its own issues.
“…It gets me really worried about all the elements I use in my streams,” Lance Icarus, a Seattle-based gaming broadcaster, told GeekWire via Discord. “I play indie games that are proud to not be GenAI. Can I stream that game knowing I’m feeding that playthrough into a machine?”
Icarus continued, “What about when I stream with guests? Some of them are voice talents who fought hard to gain rights against the very thing I’m asking them to do by streaming on our channel. I’m still trying to wrap my head around all the ramifications.”
Beyond the simple logistics, it’s hard to overstate the degree of hostility that Amazon and Twitch are facing over this move, from both broadcasters and audience members.
“They had to do it like this,” Seattle-based Twitch streamer Will Overgard told GeekWire. “Generative AI doesn’t make money, but selling data does. I guess they turned data collection on for everyone hoping enough people wouldn’t know to turn it off or forget about it so they’d have something to flog.”
Kish noted during her Aug. 12 stream that Twitch and Amazon are watching the numbers to see how many broadcasters actively opt out of being used as training data.
At time of writing, discussions are ongoing about what if any reaction this will draw from the creator community on Twitch, which still drives much of the platform’s business. One step that’s already been taken is that streamers have begun to tag their own broadcasts with “AIOptedOut” or “NoAI” to indicate their feelings on the matter. It’s now a question of whether audiences will follow suit.
An Amazon box moves along a conveyor belt at Amazon’s fulfillment center in Robbinsville, New Jersey, U.S., December 1, 2025. REUTERS/Eduardo Munoz/File Photo Purchase Licensing Rights, opens new tab
CompaniesAug 14 (Reuters) - Amazon (AMZN.O), opens new tab on Friday reinstated binding arbitration for its U.S. customers while also barring them from seeking class-action lawsuits, making it more difficult for users to address grievances in court.
In emails on Friday, Amazon said the changes are effective immediately and customers agree to the terms by continuing to use the company's services. Often, companies alert customers to upcoming changes to their terms of service weeks in advance.
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Previously, Amazon said customers should pursue legal claims in court in Washington state, where Amazon is based. Five years ago, Amazon revoked binding arbitration after facing tens of thousands of costly individual cases.
"We determined that reinstating the arbitration clause will offer customers a fast, cost-effective way to resolve disputes while still giving them the option of going to small claims court," a spokesperson said in a statement.
In 2021, Amazon was flooded with around 75,000 arbitration claims from customers claiming its Alexa service was recording them without their consent. It was part of a tactic some law firms use to overwhelm corporations with arbitration claims, forcing them to pay millions of dollars in fees to start the process and causing administrative headaches.
Amazon said in its new terms that 25 or more arbitration cases relating to the same matter in a six-month period would be considered a "mass arbitration" and would be settled in "batches of at least 25."
Courts have generally sided with corporations over language in their terms of service that dictate when and how customers can pursue legal recourse. Arbitration cases are settled privately before a third-party adjudicator, meaning disputes and any settlement typically are not made public.
Disputes with Amazon, including class-action suits, begun prior to Friday are not impacted by the new terms.
Reporting by Greg Bensinger in San Francisco; Editing by Lisa Shumaker and Rosalba O'Brien
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Greg Bensinger joined Reuters as a technology correspondent in 2022 focusing on the world's largest technology companies. He was previously a member of The New York Times editorial board and a technology beat reporter for The Washington Post and The Wall Street Journal. He also worked for Bloomberg News writing about the auto and telecommunications industries. He studied English literature at The University of Virginia and graduate journalism at Columbia University. Greg lives in San Francisco with his wife and two children.
Dala Group LLC acquired a new stake in Amazon.com, Inc. (NASDAQ:AMZN) during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 8,419 shares of the e-commerce giant’s stock, valued at approximately $1,755,000. Amazon.com accounts for about 1.5% of Dala Group LLC’s holdings, making the stock its 18th largest position.
Several other hedge funds also recently bought and sold shares of the stock. Vanguard Group Inc. boosted its position in shares of Amazon.com by 1.1% during the 1st quarter. Vanguard Group Inc. now owns 832,274,556 shares of the e-commerce giant’s stock worth $158,348,557,000 after purchasing an additional 8,913,959 shares during the period. State Street Corp lifted its stake in Amazon.com by 1.8% during the fourth quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant’s stock worth $89,708,913,000 after purchasing an additional 6,971,680 shares in the last quarter. Geode Capital Management LLC lifted its stake in Amazon.com by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 225,120,994 shares of the e-commerce giant’s stock worth $51,753,622,000 after purchasing an additional 2,479,324 shares in the last quarter. Norges Bank purchased a new position in shares of Amazon.com during the fourth quarter worth $32,868,735,000. Finally, Auto Owners Insurance Co boosted its position in shares of Amazon.com by 27,376.7% during the fourth quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant’s stock worth $2,272,397,000 after buying an additional 98,090,585 shares during the period. Hedge funds and other institutional investors own 72.20% of the company’s stock.
Amazon.com Stock Performance Shares of Amazon.com stock opened at $265.13 on Friday. The business has a 50-day simple moving average of $247.57 and a 200-day simple moving average of $238.49. 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, Inc. has a one year low of $196.00 and a one year high of $287.20. The company has a market cap of $2.86 trillion, a PE ratio of 21.33, a P/E/G ratio of 1.78 and a beta of 1.45.
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 for the quarter, beating the consensus estimate of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The firm had revenue of $200.61 billion for the quarter, compared to analysts’ expectations of $197.03 billion. During the same quarter last year, the company earned $1.68 earnings per share. The firm’s revenue was up 19.6% compared to the same quarter last year. On average, equities research analysts forecast that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.
Insiders Place Their Bets In other news, CEO Douglas J. Herrington sold 1,000 shares of the firm’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $278.39, for a total value of $278,390.00. Following the sale, the chief executive officer directly owned 483,527 shares in the company, valued at approximately $134,609,081.53. This trade represents a 0.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of Amazon.com stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $262.38, for a total transaction of $620,003.94. Following the sale, the vice president directly owned 119,780 shares of the company’s stock, valued at approximately $31,427,876.40. This trade represents a 1.93% 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. In the last three months, insiders sold 62,650 shares of company stock worth $16,535,457. 8.90% of the stock is currently owned by insiders.
Wall Street Analyst Weigh In Several equities research analysts recently issued reports on AMZN shares. Guggenheim reiterated a “buy” rating and issued a $320.00 price objective (up from $300.00) on shares of Amazon.com in a report on Thursday, April 30th. KeyCorp lifted their target price on Amazon.com from $335.00 to $350.00 and gave the company an “overweight” rating in a research report on Friday, July 31st. JPMorgan Chase & Co. increased their price target on shares of Amazon.com from $330.00 to $365.00 and gave the stock an “overweight” rating in a research report on Friday, July 31st. Arete Research raised their price objective on shares of Amazon.com from $301.00 to $310.00 and gave the company a “buy” rating in a research note on Monday, May 18th. Finally, HSBC restated a “buy” rating and issued a $310.00 price objective on shares of Amazon.com in a report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $322.56.
Check Out Our Latest Report on AMZN
Key Amazon.com News Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Amazon is positioning Alexa as an AI-powered shopping assistant that can identify missing groceries from a refrigerator photo, create a shopping list and potentially direct purchases before customers visit competitors such as Walmart. The initiative could strengthen Amazon’s grocery and retail ecosystem. Amazon Wants Alexa to Own the Shopping List Before Walmart Ever Sees It Positive Sentiment: AWS remains a major bullish catalyst. Recent reports highlighted 36.7% year-over-year AWS growth, a roughly $496 billion backlog and substantial demand for AI infrastructure. Amazon has also made OpenAI cybersecurity models available through Amazon Bedrock, supporting cloud-service adoption. Amazon Stock Eyes AWS Growth as Amazon’s $220 Billion Spending Plan Expands Positive Sentiment: Analyst coverage remains favorable, with one report citing a potential 32% upside and no sell ratings among 62 analysts. Investment activity also included Appaloosa nearly doubling its Amazon position earlier this year, signaling continued institutional confidence. Amazon’s Price Target Says Plus 32 Percent and Not a Single Analyst Says Sell Neutral Sentiment: Amazon is reportedly a leading bidder for Decart AI, which could add valuable AI talent and technology for AWS, retail operations and advertising. However, the financial terms and outcome remain uncertain. What Could Amazon Gain From Leading the Decart AI Bidding? Negative Sentiment: Twitch’s decision to enroll creators by default in sharing livestream content for Amazon AI training has triggered strong user backlash. The controversy could create reputational, regulatory and creator-retention risks. Amazon Will Train on Twitch Streamers’ Content by Default Unless They Opt Out Negative Sentiment: Amazon’s 2026 capital-expenditure forecast has risen to approximately $220 billion as it expands AI and cloud capacity. Investors are concerned that borrowing and heavy spending may reduce near-term free cash flow, particularly while Amazon does not pay a dividend. Amazon Raises 2026 AI Spending to 220 Billion Dollars Negative Sentiment: New York City labor activists and Teamsters are urging passage of legislation that could require delivery workers to be directly employed, potentially increasing Amazon’s labor costs and disrupting its last-mile delivery model. Amazon Teamsters and Allies Picket City Hall for the Delivery Protection Act About Amazon.com (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
Featured Stories Five stocks we like better than Amazon.com Asian Market Circuit Breakers Hit Stocks, Not AI Demand Riot Platforms Re-Wires the Ledger for a $9B AI Power Play Nebius Just Exploded 34% on Blowout Earnings—Is It Time to Buy? Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal 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).
Receive News & Ratings for Amazon.com Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Amazon.com and related companies with MarketBeat.com's FREE daily email newsletter.
Caerus Investment Advisors LLC lowered its holdings in Amazon.com, Inc. (NASDAQ:AMZN) by 33.2% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 9,415 shares of the e-commerce giant’s stock after selling 4,671 shares during the period. Amazon.com makes up about 0.8% of Caerus Investment Advisors LLC’s portfolio, making the stock its 18th largest holding. Caerus Investment Advisors LLC’s holdings in Amazon.com were worth $1,961,000 as of its most recent SEC filing.
A number of other institutional investors and hedge funds have also recently made changes to their positions in AMZN. MilWealth Group LLC increased its stake in Amazon.com by 79.0% during the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock worth $41,000 after acquiring an additional 79 shares during the period. Lifetime Wealth Management P.C. bought a new stake in shares of Amazon.com during the 4th quarter valued at $45,000. Elkhorn Partners Limited Partnership lifted its position in shares of Amazon.com by 900.0% during the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock valued at $46,000 after acquiring an additional 180 shares during the period. Fairway Wealth LLC grew its holdings in shares of Amazon.com by 95.6% during the 4th quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant’s stock worth $51,000 after purchasing an additional 108 shares in the last quarter. Finally, Prudent Man Investment Management Inc. grew its holdings in shares of Amazon.com by 87.7% during the 4th quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant’s stock worth $53,000 after purchasing an additional 107 shares in the last quarter. Institutional investors and hedge funds own 72.20% of the company’s stock.
Trending Headlines about Amazon.com Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Amazon is positioning Alexa as an AI-powered shopping assistant that can identify missing groceries from a refrigerator photo, create a shopping list and potentially direct purchases before customers visit competitors such as Walmart. The initiative could strengthen Amazon’s grocery and retail ecosystem. Amazon Wants Alexa to Own the Shopping List Before Walmart Ever Sees It Positive Sentiment: AWS remains a major bullish catalyst. Recent reports highlighted 36.7% year-over-year AWS growth, a roughly $496 billion backlog and substantial demand for AI infrastructure. Amazon has also made OpenAI cybersecurity models available through Amazon Bedrock, supporting cloud-service adoption. Amazon Stock Eyes AWS Growth as Amazon’s $220 Billion Spending Plan Expands Positive Sentiment: Analyst coverage remains favorable, with one report citing a potential 32% upside and no sell ratings among 62 analysts. Investment activity also included Appaloosa nearly doubling its Amazon position earlier this year, signaling continued institutional confidence. Amazon’s Price Target Says Plus 32 Percent and Not a Single Analyst Says Sell Neutral Sentiment: Amazon is reportedly a leading bidder for Decart AI, which could add valuable AI talent and technology for AWS, retail operations and advertising. However, the financial terms and outcome remain uncertain. What Could Amazon Gain From Leading the Decart AI Bidding? Negative Sentiment: Twitch’s decision to enroll creators by default in sharing livestream content for Amazon AI training has triggered strong user backlash. The controversy could create reputational, regulatory and creator-retention risks. Amazon Will Train on Twitch Streamers’ Content by Default Unless They Opt Out Negative Sentiment: Amazon’s 2026 capital-expenditure forecast has risen to approximately $220 billion as it expands AI and cloud capacity. Investors are concerned that borrowing and heavy spending may reduce near-term free cash flow, particularly while Amazon does not pay a dividend. Amazon Raises 2026 AI Spending to 220 Billion Dollars Negative Sentiment: New York City labor activists and Teamsters are urging passage of legislation that could require delivery workers to be directly employed, potentially increasing Amazon’s labor costs and disrupting its last-mile delivery model. Amazon Teamsters and Allies Picket City Hall for the Delivery Protection Act Analyst Upgrades and Downgrades AMZN has been the subject of a number of analyst reports. Benchmark boosted their price target on Amazon.com from $370.00 to $400.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Truist Financial increased their price objective on shares of Amazon.com from $320.00 to $350.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. 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. KeyCorp boosted their target price on shares of Amazon.com from $335.00 to $350.00 and gave the company an “overweight” rating in a research report on Friday, July 31st. Finally, Citizens Jmp reaffirmed a “market outperform” rating and set a $315.00 price target on shares of Amazon.com in a report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $322.56.
Check Out Our Latest Stock Report on Amazon.com
Insiders Place Their Bets In other Amazon.com news, CEO Andrew R. Jassy sold 20,000 shares of the company’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $263.42, for a total value of $5,268,400.00. Following the completion of the transaction, the chief executive officer owned 2,205,766 shares of the company’s stock, valued at $581,042,879.72. This represents a 0.90% decrease in their position. The sale 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 J. Herrington sold 6,370 shares of Amazon.com stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $262.39, for a total value of $1,671,424.30. Following the sale, the chief executive officer directly owned 486,527 shares in the company, valued at $127,659,819.53. The trade was a 1.29% 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. Over the last quarter, insiders have sold 62,650 shares of company stock worth $16,535,457. Company insiders own 8.90% of the company’s stock.
Amazon.com Price Performance AMZN stock opened at $265.13 on Friday. The company has a 50 day simple moving average of $247.57 and a 200 day simple moving average of $238.49. The stock has a market cap of $2.86 trillion, a price-to-earnings ratio of 21.33, a P/E/G ratio of 1.78 and a beta of 1.45. Amazon.com, Inc. has a 1 year low of $196.00 and a 1 year high of $287.20. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87.
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 for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. The firm had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company’s quarterly revenue was up 19.6% on a year-over-year basis. During the same quarter last year, the business posted $1.68 earnings per share. Research analysts anticipate that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.
Amazon.com Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
See Also Five stocks we like better than Amazon.com Asian Market Circuit Breakers Hit Stocks, Not AI Demand Riot Platforms Re-Wires the Ledger for a $9B AI Power Play Nebius Just Exploded 34% on Blowout Earnings—Is It Time to Buy? Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal 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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Allen Capital Group LLC lifted its position in shares of Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 8.9% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 52,359 shares of the e-commerce giant’s stock after purchasing an additional 4,261 shares during the quarter. Amazon.com accounts for 1.0% of Allen Capital Group LLC’s investment portfolio, making the stock its 27th largest holding. Allen Capital Group LLC’s holdings in Amazon.com were worth $10,905,000 at the end of the most recent quarter.
Other large investors also recently modified their holdings of the company. MilWealth Group LLC raised its position in Amazon.com by 79.0% in the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock worth $41,000 after acquiring an additional 79 shares during the period. Lifetime Wealth Management P.C. bought a new position in shares of Amazon.com during the 4th quarter valued at approximately $45,000. Elkhorn Partners Limited Partnership grew its position in shares of Amazon.com by 900.0% during the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock valued at $46,000 after acquiring an additional 180 shares during the period. Fairway Wealth LLC increased its stake in shares of Amazon.com by 95.6% during the 4th quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant’s stock worth $51,000 after purchasing an additional 108 shares during the last quarter. Finally, Prudent Man Investment Management Inc. increased its stake in shares of Amazon.com by 87.7% during the 4th quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant’s stock worth $53,000 after purchasing an additional 107 shares during the last quarter. 72.20% of the stock is currently owned by institutional investors.
Amazon.com Stock Performance NASDAQ AMZN opened at $265.13 on Friday. Amazon.com, Inc. has a 52-week low of $196.00 and a 52-week high of $287.20. The company has a fifty day moving average of $247.57 and a 200-day moving average of $238.49. The company has a market capitalization of $2.86 trillion, a P/E ratio of 21.33, a P/E/G ratio of 1.78 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.
Amazon.com (NASDAQ:AMZN – Get Free Report) last released its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The business had revenue of $200.61 billion for the quarter, compared to analysts’ expectations of $197.03 billion. During the same quarter in the prior year, the firm earned $1.68 earnings per share. The firm’s revenue was up 19.6% on a year-over-year basis. As a group, equities research analysts predict that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.
Key Amazon.com News Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Amazon is positioning Alexa as an AI-powered shopping assistant that can identify missing groceries from a refrigerator photo, create a shopping list and potentially direct purchases before customers visit competitors such as Walmart. The initiative could strengthen Amazon’s grocery and retail ecosystem. Amazon Wants Alexa to Own the Shopping List Before Walmart Ever Sees It Positive Sentiment: AWS remains a major bullish catalyst. Recent reports highlighted 36.7% year-over-year AWS growth, a roughly $496 billion backlog and substantial demand for AI infrastructure. Amazon has also made OpenAI cybersecurity models available through Amazon Bedrock, supporting cloud-service adoption. Amazon Stock Eyes AWS Growth as Amazon’s $220 Billion Spending Plan Expands Positive Sentiment: Analyst coverage remains favorable, with one report citing a potential 32% upside and no sell ratings among 62 analysts. Investment activity also included Appaloosa nearly doubling its Amazon position earlier this year, signaling continued institutional confidence. Amazon’s Price Target Says Plus 32 Percent and Not a Single Analyst Says Sell Neutral Sentiment: Amazon is reportedly a leading bidder for Decart AI, which could add valuable AI talent and technology for AWS, retail operations and advertising. However, the financial terms and outcome remain uncertain. What Could Amazon Gain From Leading the Decart AI Bidding? Negative Sentiment: Twitch’s decision to enroll creators by default in sharing livestream content for Amazon AI training has triggered strong user backlash. The controversy could create reputational, regulatory and creator-retention risks. Amazon Will Train on Twitch Streamers’ Content by Default Unless They Opt Out Negative Sentiment: Amazon’s 2026 capital-expenditure forecast has risen to approximately $220 billion as it expands AI and cloud capacity. Investors are concerned that borrowing and heavy spending may reduce near-term free cash flow, particularly while Amazon does not pay a dividend. Amazon Raises 2026 AI Spending to 220 Billion Dollars Negative Sentiment: New York City labor activists and Teamsters are urging passage of legislation that could require delivery workers to be directly employed, potentially increasing Amazon’s labor costs and disrupting its last-mile delivery model. Amazon Teamsters and Allies Picket City Hall for the Delivery Protection Act Analyst Upgrades and Downgrades Several analysts have issued reports on AMZN shares. Wells Fargo & Company restated an “overweight” rating and issued a $328.00 target price (up from $322.00) on shares of Amazon.com in a research note on Friday, July 31st. Zacks Research upgraded Amazon.com from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 4th. Roth Capital reissued a “buy” rating and issued a $325.00 price objective on shares of Amazon.com in a report on Monday, August 3rd. Raymond James Financial restated an “outperform” rating and issued a $390.00 price objective (up from $280.00) on shares of Amazon.com in a research note on Friday, July 31st. Finally, Scotiabank reaffirmed an “outperform” rating and set a $325.00 price objective (up from $275.00) on shares of Amazon.com in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $322.56.
Read Our Latest Stock Analysis on AMZN
Insider Buying and Selling at Amazon.com In other news, CEO Andrew R. Jassy sold 20,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $263.42, for a total value of $5,268,400.00. Following the transaction, the chief executive officer owned 2,205,766 shares in the company, valued at approximately $581,042,879.72. This trade represents a 0.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $262.38, for a total transaction of $620,003.94. Following the sale, the vice president directly owned 119,780 shares of the company’s stock, valued at $31,427,876.40. The trade was a 1.93% 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 quarter, insiders sold 62,650 shares of company stock valued at $16,535,457. 8.90% of the stock is currently owned by insiders.
Amazon.com Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
Recommended Stories Five stocks we like better than Amazon.com Asian Market Circuit Breakers Hit Stocks, Not AI Demand Riot Platforms Re-Wires the Ledger for a $9B AI Power Play Nebius Just Exploded 34% on Blowout Earnings—Is It Time to Buy? Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal
Receive News & Ratings for Amazon.com Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Amazon.com and related companies with MarketBeat.com's FREE daily email newsletter.
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Amazon Web Services ve 2. čtvrtletí zrychlil růst výnosů na 37 % meziročně a tvořil 60 % provozního zisku Amazonu. Firma zároveň letos plánuje kapitálové výdaje kolem 220 miliard USD.
When you think of artificial intelligence (AI) companies, Amazon (AMZN -0.80%) may not be a name that jumps to the top of the list. However, with its cloud computing business delivering an incredible 37% year-over-year growth rate, I think it's a force to be reckoned with. While there may be companies that are growing faster than that, Amazon's growth rate is picking up, and it could stay hot for several years based on the company's massive investments in AI computing infrastructure.
This could lead to Amazon being one of the biggest winners in the next phase of the AI arms race, and if you don't own shares already, it isn't too late to buy.
Image source: The Motley Fool.
Amazon Web Services is a top reason to own the stock Amazon Web Services (AWS) is Amazon's cloud computing division. It's the No. 1 competitor by market share, with about 28% last quarter. In Q2, it accounted for 21% of the company's total revenue, but 60% of its operating profits. That's an incredible contribution from a small business unit, and with AWS growing rapidly, Amazon as a whole will benefit.
While the other two cloud computing titans -- Alphabet's Google Cloud (15% market share) and Microsoft Azure (20% market share) -- reported faster growth than AWS, what investors must understand is that AWS' growth rate is rapidly accelerating. In Q3 2025, AWS' growth rate was 20%. In Q4 2025 and Q1 2026, its year-over-year growth accelerated to 24% and 28%, respectively. In Q2, the growth rate jumped further to 37%, and it likely isn't done there.
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Amazon is spending the most of any AI hyperscaler on computing infrastructure this year, with capital expenditures expected to total around $220 billion. All of that spending will eventually convert into increased computing capacity, which will in turn lead to increased revenue. A larger revenue base will allow Amazon to invest even more in data center infrastructure, creating a growth flywheel that should send Amazon stock soaring, as long as there is demand for compute.
Fortunately for Amazon shareholders, it's pretty clear that there is.
During its Q2 conference call, CEO Andy Jassy noted that the company doesn't have enough capacity to meet all available demand in 2026, and that 2027 is also shaping up to be that way. As a result, there's already demand for capacity that it won't have online until 2028. Having that type of visibility into sales growth that's almost a year and a half out bulks up the Amazon investment thesis.
Amazon's growth rate will remain strong over the next few years, driven by its robust cloud services offerings. As a result, I think Amazon is one of the best AI stocks to buy now and hold for the long term.
Amazon je jedinou firmou s tržní kapitalizací kolem 3 bilionů USD, která nikdy nevyplácela dividendu. Volný cash flow je za posledních 12 měsíců po investicích do AI a cloudu záporný, konkrétně činí odtok 7,6 miliardy USD.
Five companies command market values around $3 trillion or more: chipmaker Nvidia, Apple, Alphabet, Microsoft, and Amazon (AMZN -0.80%). Four of them pay quarterly dividends.
Amazon is the exception, and it always has been. The e-commerce and cloud computing giant has never paid a dividend, and it joined this group only recently, crossing the $3 trillion line for the first time on Aug. 3.
The reason has little to do with how much cash comes in the door. What's missing is anything left over once the company finishes spending.
Where does all of that cash go?
Image source: Amazon.
Four payers and a holdout Among the other four, dividends are settled business. Microsoft, Apple, and Nvidia all pay them, and Alphabet, the group's newest payer, initiated its first-ever dividend in April 2024, alongside a $70 billion buyback authorization.
Amazon, by contrast, currently returns nothing to shareholders in any form. There's no dividend. And the company's one buyback program, a $10 billion authorization from March 2022, has sat idle -- no shares were repurchased in 2023, 2024, or 2025, and $6.1 billion of it was still available at the end of last year.
For income investors, that means there's nothing here, and there likely won't be for years to come.
The cash is spoken for The money Amazon isn't paying out is easy to find. Management expects about $220 billion of capital expenditures this year, most of it aimed at artificial intelligence (AI) and cloud capacity. That figure was $200 billion as recently as February, before rising memory prices pushed it higher. And it caps a steep climb. Amazon's net cash spending on property and equipment was about $48 billion in 2023, about $78 billion in 2024, and about $128 billion in 2025.
All of that spending now exceeds what Amazon's operations bring in. Operating cash flow rose 33% year over year to $161.4 billion over the trailing 12 months. Free cash flow (what remains after capital spending) swung to an outflow of $7.6 billion over the same stretch, compared with an inflow of $18.2 billion a year earlier. The swing came from purchases of property and equipment running $66.1 billion higher than the year before.
For perspective, Alphabet generated about $69 billion of free cash flow in 2023, the year before it started paying a dividend. Amazon produces far more cash from operations than Alphabet did then, and it still ends up below zero once the data centers are paid for. I'd argue those two numbers are the whole explanation.
Nor does management sound ready to slow down. CEO Andy Jassy told investors on the company's July 30 earnings call that even $220 billion won't buy enough capacity to meet this year's demand, and that he believes the same will be true in 2027.
Should shareholders mind? The case for the build-out is in what the spending is already producing. Amazon Web Services (AWS) revenue rose 37% year over year to $42.2 billion in the second quarter -- growth that management said was its fastest in 18 quarters. And in the earnings release, Jassy said AWS is "booming," noting that the company's AI and chips businesses "each eclipsed run rates of more than $25 billion" annually.
The profits are following. Operating income climbed 43% year over year to $27.5 billion in the second quarter, with AWS contributing $16.6 billion of that. Net income more than tripled to $62.6 billion, though most of the jump came from a one-time source -- $53.4 billion of non-operating income, primarily gains tied to the company's Anthropic investments.
Today's Change
(
-0.80
%) $
-2.15
Current Price
$
265.13
Sure, the stock isn't obviously cheap. Shares trade around $276 as of this writing, about 4% off their record high.
Measured against the earnings analysts expect over the next 12 months, the price comes to about 30 times. The ratio on the past year's earnings looks cheaper, but only because those earnings include the windfall.
But a company growing revenue 20% at Amazon's size, with its most profitable segment accelerating, can grow into a price like that.
Ultimately, the missing dividend is a choice, and it's an easy one to understand. Amazon isn't withholding cash from shareholders out of stinginess. Instead, there is simply no free cash flow to spare after the build-out, and the company is betting that a dollar of AI capacity earns more than a dollar of payout ever could. As long as AWS keeps compounding at rates like the second quarter's, I think that bet is defensible.
FinArc Investments Inc. purchased a new position in Amazon.com, Inc. (NASDAQ:AMZN – Free Report) during the 1st quarter, according to its most recent 13F filing with the SEC. The firm purchased 6,214 shares of the e-commerce giant’s stock, valued at approximately $1,294,000. Amazon.com comprises approximately 1.2% of FinArc Investments Inc.’s investment portfolio, making the stock its 27th largest position.
A number of other institutional investors have also made changes to their positions in the stock. TrueWealth Financial Partners bought a new stake in Amazon.com in the first quarter valued at about $5,253,000. Pathway Wealth Management LLC lifted its stake in Amazon.com by 4.2% in the first quarter. Pathway Wealth Management LLC now owns 24,775 shares of the e-commerce giant’s stock valued at $5,160,000 after buying an additional 1,000 shares during the period. Norris Financial Group LLC bought a new position in Amazon.com during the first quarter worth about $3,560,000. Front Row Advisors LLC boosted its holdings in Amazon.com by 0.3% during the first quarter. Front Row Advisors LLC now owns 15,134 shares of the e-commerce giant’s stock worth $3,152,000 after buying an additional 45 shares during the last quarter. Finally, Western Wealth Management LLC boosted its holdings in Amazon.com by 25.3% during the first quarter. Western Wealth Management LLC now owns 189,362 shares of the e-commerce giant’s stock worth $39,439,000 after buying an additional 38,238 shares during the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.
Amazon.com Price Performance Shares of AMZN opened at $267.28 on Thursday. 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 twelve month low of $196.00 and a twelve month high of $287.20. The stock has a market capitalization of $2.88 trillion, a P/E ratio of 21.50, a P/E/G ratio of 1.81 and a beta of 1.45. The company has a 50 day moving average of $247.35 and a 200-day moving average of $238.30.
Amazon.com (NASDAQ:AMZN – Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, topping 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 analyst estimates of $197.03 billion. During the same quarter in the previous year, the firm posted $1.68 earnings per share. The firm’s revenue for the quarter was up 19.6% on a year-over-year basis. As a group, equities research analysts forecast that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.
Key Amazon.com News Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AWS remains the primary bullish catalyst. Amazon reportedly raised its 2026 capital-expenditure forecast to approximately $220 billion from $200 billion as cloud demand accelerates; AWS revenue grew 36.7% year over year to $42.2 billion, while its backlog reached $496 billion. Much of Amazon’s 2027 cloud capacity is already committed, improving visibility into future growth. Amazon Stock Eyes AWS Growth as Spending Plan Expands Positive Sentiment: Two OpenAI cybersecurity models, Daybreak Red and Daybreak Blue, launched on Amazon Bedrock, with AWS security teams already using them to identify vulnerabilities. The announcement reinforces the investment case for Bedrock and AWS as enterprise AI adoption expands. Amazon Is Powering OpenAI’s Cyber Models Neutral Sentiment: Amazon expanded its delivery Locker network to more than 750 locations across over 500 U.S. college campuses. The initiative could support convenience and customer engagement, although its near-term financial effect is likely limited. Amazon Expands Locker Pickup to U.S. Colleges Negative Sentiment: Investors are increasingly focused on whether the $220 billion AI spending program will generate adequate returns. The sharp increase from $132 billion in 2025 raises depreciation, financing, and execution risks, particularly if AI demand or monetization slows. Amazon Raises 2026 AI Spending Negative Sentiment: Twitch confirmed that Amazon will use livestream content to train AI models by default unless creators opt out. The policy has triggered backlash from streamers and could create reputational, creator-retention, and regulatory risks. Amazon Will Train on Twitch Content by Default Negative Sentiment: New York City lawmakers are backing legislation that would require large delivery operators to directly employ couriers rather than rely on subcontractors. Amazon warns the proposal could put more than 5,000 jobs at risk and increase delivery costs. Mamdani Takes on Amazon Over Delivery Workers Negative Sentiment: Broader market pressure also weighed on AMZN as investors rotated away from high-valued technology shares and awaited inflation data. Recent insider and founder selling, including Jeff Bezos’ large planned sale, may add sentiment pressure, although the transactions were reportedly made under prearranged trading plans. Analyst Upgrades and Downgrades AMZN has been the subject of a number of recent analyst reports. Jefferies Financial Group reaffirmed a “buy” rating on shares of Amazon.com in a research note on Thursday, June 18th. Piper Sandler reissued an “overweight” rating and set a $320.00 price objective (up from $315.00) on shares of Amazon.com in a research note on Friday, July 31st. Mizuho set a $330.00 price objective on shares of Amazon.com and gave the company an “outperform” rating in a report on Friday, July 31st. Roth Capital restated a “buy” rating and set a $325.00 price objective on shares of Amazon.com in a report on Monday, August 3rd. Finally, Scotiabank reaffirmed an “outperform” rating and issued a $325.00 target price (up from $275.00) on shares of Amazon.com in a research note on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $322.56.
Check Out Our Latest Stock Analysis on AMZN
Insider Transactions at Amazon.com In other Amazon.com news, CEO Matthew S. Garman sold 15,467 shares of Amazon.com stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $263.40, for a total value of $4,074,007.80. Following the sale, the chief executive officer directly owned 14,159 shares in the company, valued at approximately $3,729,480.60. The trade was a 52.21% decrease in their position. The sale was disclosed in a filing 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 R. Jassy sold 20,000 shares of the business’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $263.42, for a total transaction of $5,268,400.00. Following the sale, the chief executive officer directly owned 2,205,766 shares in the company, valued at $581,042,879.72. This trade represents a 0.90% 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. In the last ninety days, insiders sold 77,867 shares of company stock worth $20,532,092. 8.90% of the stock is owned by insiders.
Amazon.com Company Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
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Argent Capital Management v 1. čtvrtletí snížila podíl v Amazonu o 7,6 % a prodala 71 954 akcií. Po transakci držela 871 185 akcií v hodnotě 181,4 milionu USD.
Argent Capital Management LLC decreased its position in Amazon.com, Inc. (NASDAQ:AMZN) by 7.6% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 871,185 shares of the e-commerce giant’s stock after selling 71,954 shares during the period. Amazon.com makes up 5.7% of Argent Capital Management LLC’s portfolio, making the stock its 3rd largest position. Argent Capital Management LLC’s holdings in Amazon.com were worth $181,442,000 at the end of the most recent quarter.
Other large investors have also made changes to their positions in the company. Brighton Jones LLC lifted its position in Amazon.com by 10.9% in the 4th quarter. Brighton Jones LLC now owns 4,036,091 shares of the e-commerce giant’s stock valued at $885,478,000 after acquiring an additional 397,007 shares in the last quarter. Revolve Wealth Partners LLC increased its holdings in Amazon.com by 4.1% during the 4th quarter. Revolve Wealth Partners LLC now owns 25,045 shares of the e-commerce giant’s stock worth $5,495,000 after purchasing an additional 986 shares in the last quarter. Bank Pictet & Cie Europe AG increased its holdings in Amazon.com by 2.8% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,016,869 shares of the e-commerce giant’s stock worth $442,481,000 after purchasing an additional 54,987 shares in the last quarter. Highview Capital Management LLC DE raised its stake in shares of Amazon.com by 5.5% in the 4th quarter. Highview Capital Management LLC DE now owns 28,975 shares of the e-commerce giant’s stock valued at $6,357,000 after purchasing an additional 1,518 shares during the period. Finally, Liberty Square Wealth Partners LLC acquired a new stake in shares of Amazon.com in the 4th quarter valued at about $2,153,000. Institutional investors own 72.20% of the company’s stock.
Analysts Set New Price Targets Several research analysts have recently weighed in on AMZN shares. Evercore reaffirmed an “outperform” rating on shares of Amazon.com in a research report on Tuesday, July 28th. Needham & Company LLC reissued a “buy” rating and issued a $300.00 target price on shares of Amazon.com in a research report on Friday, July 31st. Rosenblatt Securities boosted their target price on Amazon.com from $332.00 to $345.00 and gave the company a “buy” rating in a research note on Friday, July 31st. HSBC reaffirmed a “buy” rating and set a $310.00 price target on shares of Amazon.com in a research report on Friday, July 31st. Finally, DA Davidson reaffirmed a “neutral” rating and set a $250.00 price target on shares of Amazon.com in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $322.56.
Read Our Latest Report on Amazon.com
More Amazon.com News Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AWS remains the primary bullish catalyst. Amazon reportedly raised its 2026 capital-expenditure forecast to approximately $220 billion from $200 billion as cloud demand accelerates; AWS revenue grew 36.7% year over year to $42.2 billion, while its backlog reached $496 billion. Much of Amazon’s 2027 cloud capacity is already committed, improving visibility into future growth. Amazon Stock Eyes AWS Growth as Spending Plan Expands Positive Sentiment: Two OpenAI cybersecurity models, Daybreak Red and Daybreak Blue, launched on Amazon Bedrock, with AWS security teams already using them to identify vulnerabilities. The announcement reinforces the investment case for Bedrock and AWS as enterprise AI adoption expands. Amazon Is Powering OpenAI’s Cyber Models Neutral Sentiment: Amazon expanded its delivery Locker network to more than 750 locations across over 500 U.S. college campuses. The initiative could support convenience and customer engagement, although its near-term financial effect is likely limited. Amazon Expands Locker Pickup to U.S. Colleges Negative Sentiment: Investors are increasingly focused on whether the $220 billion AI spending program will generate adequate returns. The sharp increase from $132 billion in 2025 raises depreciation, financing, and execution risks, particularly if AI demand or monetization slows. Amazon Raises 2026 AI Spending Negative Sentiment: Twitch confirmed that Amazon will use livestream content to train AI models by default unless creators opt out. The policy has triggered backlash from streamers and could create reputational, creator-retention, and regulatory risks. Amazon Will Train on Twitch Content by Default Negative Sentiment: New York City lawmakers are backing legislation that would require large delivery operators to directly employ couriers rather than rely on subcontractors. Amazon warns the proposal could put more than 5,000 jobs at risk and increase delivery costs. Mamdani Takes on Amazon Over Delivery Workers Negative Sentiment: Broader market pressure also weighed on AMZN as investors rotated away from high-valued technology shares and awaited inflation data. Recent insider and founder selling, including Jeff Bezos’ large planned sale, may add sentiment pressure, although the transactions were reportedly made under prearranged trading plans. Insider Activity at Amazon.com In other news, CEO Andrew R. Jassy sold 20,000 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $263.42, for a total value of $5,268,400.00. Following the completion of the sale, the chief executive officer owned 2,205,766 shares of the company’s stock, valued at approximately $581,042,879.72. This represents a 0.90% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of the firm’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $263.40, for a total transaction of $4,074,007.80. Following the completion of the transaction, the chief executive officer directly owned 14,159 shares of the company’s stock, valued at $3,729,480.60. This represents a 52.21% 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. Over the last quarter, insiders have sold 77,867 shares of company stock worth $20,532,092. Insiders own 8.90% of the company’s stock.
Amazon.com Stock Performance AMZN opened at $267.28 on Thursday. Amazon.com, Inc. has a 52-week low of $196.00 and a 52-week high of $287.20. The firm has a market capitalization of $2.88 trillion, a PE ratio of 21.50, a PEG ratio of 1.81 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 business’s 50-day simple moving average is $247.35 and its 200 day simple moving average is $238.30.
Amazon.com (NASDAQ:AMZN – Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. The firm had revenue of $200.61 billion during 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% compared to the same quarter last year. During the same period last year, the company earned $1.68 earnings per share. As a group, sell-side analysts expect that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.
About Amazon.com (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
Recommended Stories Five stocks we like better than Amazon.com GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs 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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Arete Wealth Advisors v 1. čtvrtletí zvýšila podíl v Amazon.com o 6,0 % na 86 584 akcií po nákupu 4 928 kusů. Hodnota podílu činila 18,028 milionu USD.
Arete Wealth Advisors LLC raised its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 6.0% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 86,584 shares of the e-commerce giant’s stock after purchasing an additional 4,928 shares during the quarter. Amazon.com accounts for 1.1% of Arete Wealth Advisors LLC’s portfolio, making the stock its 22nd biggest position. Arete Wealth Advisors LLC’s holdings in Amazon.com were worth $18,028,000 as of its most recent filing with the SEC.
Several other institutional investors and hedge funds have also recently made changes to their positions in the company. Gryphon Financial Partners LLC grew its holdings in shares of Amazon.com by 7.5% during the 1st 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 period. First Citizens Bank & Trust Co. raised its holdings in 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 valued at $63,285,000 after buying an additional 5,104 shares during the period. Narwhal Capital Management raised its holdings in Amazon.com by 2.3% in the fourth quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant’s stock valued at $49,997,000 after buying an additional 4,854 shares during the period. Arrowstreet Capital Limited Partnership lifted its position in Amazon.com by 21.0% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 24,653,228 shares of the e-commerce giant’s stock valued at $5,690,463,000 after buying an additional 4,275,942 shares in the last quarter. Finally, Weaver Capital Management LLC lifted its position in Amazon.com by 13.6% during the fourth quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant’s stock valued at $9,063,000 after buying an additional 4,713 shares in the last quarter. Institutional investors own 72.20% of the company’s stock.
Amazon.com Price Performance AMZN opened at $267.28 on Thursday. The company has a market capitalization of $2.88 trillion, a P/E ratio of 21.50, a PEG ratio of 1.81 and a beta of 1.45. The company has a 50-day moving average of $247.35 and a 200-day moving average of $238.30. 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, Inc. has a 1-year low of $196.00 and a 1-year high of $287.20.
Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. The business had revenue of $200.61 billion during 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 quarterly revenue was up 19.6% on a year-over-year basis. During the same period in the previous year, the business earned $1.68 EPS. Equities analysts expect that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.
Amazon.com News Roundup Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AWS remains the primary bullish catalyst. Amazon reportedly raised its 2026 capital-expenditure forecast to approximately $220 billion from $200 billion as cloud demand accelerates; AWS revenue grew 36.7% year over year to $42.2 billion, while its backlog reached $496 billion. Much of Amazon’s 2027 cloud capacity is already committed, improving visibility into future growth. Amazon Stock Eyes AWS Growth as Spending Plan Expands Positive Sentiment: Two OpenAI cybersecurity models, Daybreak Red and Daybreak Blue, launched on Amazon Bedrock, with AWS security teams already using them to identify vulnerabilities. The announcement reinforces the investment case for Bedrock and AWS as enterprise AI adoption expands. Amazon Is Powering OpenAI’s Cyber Models Neutral Sentiment: Amazon expanded its delivery Locker network to more than 750 locations across over 500 U.S. college campuses. The initiative could support convenience and customer engagement, although its near-term financial effect is likely limited. Amazon Expands Locker Pickup to U.S. Colleges Negative Sentiment: Investors are increasingly focused on whether the $220 billion AI spending program will generate adequate returns. The sharp increase from $132 billion in 2025 raises depreciation, financing, and execution risks, particularly if AI demand or monetization slows. Amazon Raises 2026 AI Spending Negative Sentiment: Twitch confirmed that Amazon will use livestream content to train AI models by default unless creators opt out. The policy has triggered backlash from streamers and could create reputational, creator-retention, and regulatory risks. Amazon Will Train on Twitch Content by Default Negative Sentiment: New York City lawmakers are backing legislation that would require large delivery operators to directly employ couriers rather than rely on subcontractors. Amazon warns the proposal could put more than 5,000 jobs at risk and increase delivery costs. Mamdani Takes on Amazon Over Delivery Workers Negative Sentiment: Broader market pressure also weighed on AMZN as investors rotated away from high-valued technology shares and awaited inflation data. Recent insider and founder selling, including Jeff Bezos’ large planned sale, may add sentiment pressure, although the transactions were reportedly made under prearranged trading plans. Insider Transactions at Amazon.com In other Amazon.com news, SVP David Zapolsky sold 9,270 shares of the stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the sale, the senior vice president directly owned 41,190 shares of the company’s stock, valued at approximately $11,060,750.70. This represents a 18.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 6,370 shares of the firm’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $262.39, for a total transaction of $1,671,424.30. Following the completion of the transaction, the chief executive officer owned 486,527 shares in the company, valued at approximately $127,659,819.53. The trade was a 1.29% 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 a total of 77,867 shares of company stock valued at $20,532,092 over the last quarter. Insiders own 8.90% of the company’s stock.
Wall Street Analyst Weigh In Several research firms have recently issued reports on AMZN. Evercore reissued an “outperform” rating on shares of Amazon.com in a research report on Tuesday, July 28th. Canaccord Genuity Group lifted their target price on shares of Amazon.com from $300.00 to $330.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Rosenblatt Securities upped their price target on shares of Amazon.com from $332.00 to $345.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Sanford C. Bernstein reiterated an “outperform” rating and issued a $320.00 price target (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Finally, Oppenheimer reissued an “outperform” rating on shares of Amazon.com in a research report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $322.56.
View Our Latest Research Report on AMZN
Amazon.com Company Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
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Amazon přestavuje cloudovou infrastrukturu pro e-commerce kvůli omezené kapacitě a nedostatku energie v AWS. Projekt Region Flex přesouvá zátěž z velkých regionů, včetně Dublinu, do více lokalit.
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Amazon CEO Andy Jassy Bloomberg/Getty Images Amazon's huge e-commerce business is redesigning its cloud setup as power and data center capacity become increasingly constrained.
The multiyear effort, known internally as "Region Flex," aims to reduce the concentration of Amazon's online retail operations in a handful of large AWS regions and run systems across more locations at a smaller scale, according to internal planning documents obtained by Business Insider.
Internal plans include efforts to reduce Amazon e-commerce footprint in major AWS hubs such as Northern Virginia and Dublin, Ireland, according to the documents.
The AI boom has sparked an industrywide scramble for power and computing capacity. Amazon is racing to expand AWS data centers and says it added more capacity globally than any other company last year. Even so, CEO Andy Jassy said last month that AWS still can't build capacity fast enough to meet demand.
"AWS power constraints"Region Flex may not have started due to industrywide power constraints caused by the AI boom, but the internal documents obtained by Business Insider show this has become a driving force behind the project.
The Amazon internal documents explicitly cite power and capacity constraints in its cloud planning for the e-commerce business.
One planning document from last year said online retail teams were investing in moving infrastructure out of AWS's Dublin region "to mitigate expansion risk due to AWS power constraints."
A separate online grocery team document said Region Flex was required to ensure Amazon could meet "projected capacity requirements in each region."
Amazon's e-commerce logistics organization described Region Flex as dividing its "service architecture footprint" so it could run "in more AWS regions at a smaller scale, in closer proximity to our customers," according to one planning document from earlier this year.
'S-Team goal'Region Flex is being tracked by Amazon's most senior leaders.
Amazon's grocery business described the initiative as an "S-Team goal," referring to Amazon's senior leadership team, and said teams were planning more than 100 software migrations. The documents also describe Region Flex as improving resilience during AWS disruptions.
The industrywide AI boom has sent demand for computing infrastructure soaring while electricity and available data center space have become major constraints on expansion.
Vacancy rates across North America's largest data center markets fell to a record 1.4% at the end of 2025, according to CBRE. Limited power availability is pushing more data centers beyond established hubs into smaller markets where electricity can be secured more quickly.
Amazon is adding enormous amounts of infrastructure to meet demand. In October, the company said it had added more than 3.8 gigawatts of data center capacity over the previous year, doubling its cloud scale since 2022, and expects to roughly double its power capacity again by the end of 2027.
An AWS data center in Sterling, Virginia Bloomberg/Getty Images Distributing workloadsDublin has been one focus of Region Flex. Ireland became one of Europe's biggest data center markets over the past decade, putting significant pressure on the country's electricity system.
An internal plan last year called for reducing the Dublin infrastructure footprint of Amazon's e-commerce operation by 40% through migrations and deprecations in 2025. It also contemplated fully moving away from Dublin by the end of 2026 and from AWS regions in Northern Virginia and Oregon by 2029.
In an email to Business Insider, an Amazon spokesperson confirmed Region Flex. The spokesperson added that official internal Amazon documents don't always reflect current plans and described some of the timelines and other details in the documents obtained by Business Insider as "not accurate."
"Evolving our infrastructure is nothing new — it's something we've done for years to deliver the experience our customers expect from Amazon," the spokesperson said.
Using more AWS regions gives Amazon's online retail business greater flexibility to meet customer demand, improve reliability, manage costs, and bring services closer to customers, according to the spokesperson.
The internal documents show Amazon moving workloads from its long-established Dublin hub and distributing them across more AWS regions, including Frankfurt and Zaragoza, Spain.
That can be more expensive. Some services moving from Dublin into those two other regions could see infrastructure costs rise 10% to 15%, according to one document, because distributing workloads can reduce hosting efficiency. Amazon also estimated $90 million in one-time spending on Region Flex in 2025, according to an internal planning document.
Distributing workloads doesn't necessarily eliminate capacity problems. One of the documents noted "capacity constraints" in the Zaragoza region meant the organization planned to move only 65% of its remaining infrastructure costs there, leaving 35% in Dublin.
Despite AWS's rapid expansion, the company still expects shortages to persist. Jassy called power the "single biggest constraint" last year, and said demand will continue to outstrip supply during last month's earnings call.
"Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026," Jassy said, adding that he expected the same dynamic in 2027.
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Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail operations, AWS, Alexa, and its secretive internal work 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 broke a story uncovering Amazon’s practice of deceptively enrolling customers in Prime and deliberately making cancellation difficult. A year later, the Federal Trade Commission sued the company, citing his reporting. That case culminated in a record $2.5 billion settlement in 2025.His reporting has earned 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. ExpertiseAmazon, Jeff Bezos, Andy Jassy, e-commerce, and cloud computing.Popular ArticlesAmazon:Internal Amazon emails give an exclusive look at how CEO Andy Jassy has started to run the company, with obsessive attention to the retail business and what some employees feel is micromanagingAndy Jassy will be the next CEO of Amazon. Insiders dish on what it's like to work for Jeff Bezos' successor, who built AWS into a $40 billion business.Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions. 'We have been deliberately confusing,' former employee says.Inside Amazon's flailing brick-and-mortar ambitions: missed projections, pressure to cut costs, and a war with Whole FoodsInside Amazon's complex employee-review system, where workers feel left in the dark and managers expect to give 5% of reports bad reviewsAfter 28 years, 'Day 2' finally arrives at AmazonAWS, Alexa, healthcare:Inside Amazon's struggle to break into the lucrative market for SaaS business applications, including an internal pitch to buy $38 billion HubSpotInside Amazon's struggle to crack Nvidia's AI-chip dominanceAmazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortagesAmazon is gutting its voice assistant, Alexa. Employees describe a division in crisis and huge losses on 'a wasted opportunity.'Amazon is working on a new 'Remarkable Alexa,' but internal politics and technical issues plague the projectAmazon projected huge losses from its healthcare business in 2024, but strong sales growth, internal document reveals
Amazon AWS Cloud Computing More Data Centers Artificial Intelligence Big Tech Exclusive
Amazon zvýšil čisté tržby o 20 %, ale masivní kapitálové výdaje stlačily volný cash flow na -7,6 miliardy USD za posledních 12 měsíců. Akcie tak obchodují za pouhý 22násobek očekávaného zisku.
The price action on Amazon (AMZN -2.09%) stock may leave investors scratching their heads. The 20% net sales growth is an improvement over 2025, when growth rates were barely above double digits.
However, despite an improved performance, its forward P/E ratio has fallen to just 22, a level that would have been unimaginable in Amazon's earlier years. Although we do not know for sure why it has become so cheap, one aspect of its financials may have made some investors hesitant to buy the stock.
Image source: The Motley Fool.
The likely reason Amazon's valuation is so low The factor most likely making investors skittish about Amazon stock is its capital expenditures (capex).
In the report for the second quarter of 2026, Amazon announced that it would increase capex spending for the year to $220 billion, up from the $200 billion estimate in the prior quarter. The company said it needed additional funding to cover the cost of memory chips, whose prices shot up amid an unprecedented shortage.
This comes after Amazon spent almost $132 billion in 2025, and the strain on its balance sheet has begun to show. The company holds about $123 billion in liquidity, which investors might typically view as a sign of balance-sheet strength.
Still, free cash flow has fallen to -$7.6 billion over the trailing 12 months (TTM). This is down from the $18.2 billion in TTM free cash flow in the year-ago quarter, indicating that Amazon's spending has begun to strain its financials.
Due in part to those expenditures, long-term debt also increased by 96% over the previous year to almost $129 billion. Considering the change in its financial situation, investors might be questioning whether Amazon can recoup this massive investment in AI infrastructure.
Moreover, amid the aforementioned 22 forward P/E ratios, investors may overlook that Amazon also trades at a 22 trailing P/E ratio. This implies that earnings growth will struggle, which is probably not a reassuring sign for investors right now.
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Nonetheless, Amazon stock hit a new all-time high following the Q2 earnings release. Also, accelerating net sales growth is a sign that it is recouping its investment, particularly given the 37% increase in its cloud computing arm, Amazon Web Services (AWS).
Furthermore, one could argue that Amazon's aforementioned negative free cash flow is actually strong, given the staggering level of capex spending. That could induce investors to see the 22 forward P/E ratio as an overreaction and convince them to add to their Amazon positions.
Amazon's stock going forward Admittedly, Amazon's unprecedented capex spending has strained its balance sheet and turned its free cash flow negative. When also considering the added borrowing, it could cause Amazon significant financial pain if the company's investment in itself does not pay off. This heavy capex spending is the most likely explanation for its low valuation.
Fortunately, Amazon's net sales growth has accelerated, and the company's continued growth and high liquidity have long attracted investors to the stock. Those factors might be a compelling reason to buy the consumer discretionary stock at 22 times forward earnings.
Jeff Bezos minulý týden prodal akcie Amazonu za více než 4 miliardy USD, ale šlo o předem plánovaný krok. Amazon přitom ve 2. čtvrtletí zvýšil tržby meziročně o 20 %.
Jeff Bezos just went on a bit of a selling spree: He unloaded more than $4 billion worth of Amazon (AMZN -2.09%) shares last week. That sale took some investors by surprise and hurt the stock after the company delivered a solid second-quarter earnings report, but Bezos had planned it more than eight months in advance.
In that light, the transaction doesn't appear to indicate how Bezos views Amazon's latest results or its outlook. While the timing might have been frustrating for investors who hoped Amazon would rise above $300 per share, the resulting conditions represent a compelling buying opportunity.
Image source: Getty Images.
Amazon is growing in multiple industries Amazon's overall revenue increased by 20% year over year in the second quarter, with Amazon Web Services being a big part of that story. Cloud platforms from tech giants have seen meaningful sequential revenue acceleration, and AWS delivered 37% year-over-year growth.
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Cloud revenue now makes up more than 20% of Amazon's top line, but the hyperscaler is also seeing compelling growth rates in other industries. High-margin online advertising revenue was up by 26% year over year, and online store sales were up by 15% year over year.
Every business segment Amazon listed showed year-over-year growth, with most in the double-digit percentages. Amazon's ability to gain market share in multiple industries should continue thanks to its strengths in artificial intelligence. Those advantages could translate into better fundamentals in future quarters and serve as the foundation for a rally toward $300 per share.
Artificial intelligence is creating new business opportunities Not only is Amazon gaining ground with its established businesses, it's also tapping into new opportunities. The tech giant has an AI business and a chip business that each surpassed $25 billion in annual revenue run rates.
Those amount to small slices of its total revenue today, but if those two segments' growth rates continue to accelerate, they can become major sales drivers in the future. Amazon already has enticing fundamentals, so its high-growth-potential opportunities are nice bonuses, but not critical to support the stock's current valuation.
Humanoid robots are also on Amazon's radar in the wake of its acquisition of Fauna Robotics in March. The company also owns autonomous vehicle company Zoox. Its self-driving vehicles are only operating in Las Vegas and San Francisco, so it has a lot of catching up to do if it's going to compete in that arena. Alphabet's Waymo is the clear market leader, but capturing even a small piece of the self-driving vehicle industry could be lucrative for Amazon.
Amazon is also in the process of developing AI smart glasses to rival those being sold by Meta Platforms. A new wave of innovative products and services will arrive due to AI, and Amazon is at the center of those opportunities.
It doesn't have to be the largest company in each of those industries to be a winning investment. Google Cloud has a smaller slice of the cloud infrastructure market than Amazon Web Services, and it is still a critical growth catalyst for Alphabet. Humanoid robots, AI chips, agentic AI, and self-driving vehicles are some of the most compelling long-term opportunities in the tech world today, and Amazon is involved in all of them.
Its growth could accelerate in upcoming quarters, and if it does, it will make the current share price look like a bargain.
Atreides Management LP v 1. čtvrtletí zvýšil svůj podíl v Amazon.com o 38,6 % a nakoupil dalších 265 761 akcií. Fond nyní drží 953 560 akcií v hodnotě 198 598 000 USD.
Atreides Management LP lifted its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 38.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 953,560 shares of the e-commerce giant’s stock after purchasing an additional 265,761 shares during the quarter. Amazon.com comprises approximately 4.0% of Atreides Management LP’s portfolio, making the stock its 6th biggest position. Atreides Management LP’s holdings in Amazon.com were worth $198,598,000 at the end of the most recent reporting period.
Several other hedge funds have also recently modified their holdings of AMZN. Encore Global Management LP purchased a new position in Amazon.com during the 1st quarter worth $3,436,000. Opal Capital LLC raised its holdings in Amazon.com by 92.4% during the first quarter. Opal Capital LLC now owns 26,834 shares of the e-commerce giant’s stock worth $5,589,000 after purchasing an additional 12,889 shares in the last quarter. Kanen Wealth Management LLC acquired a new stake in Amazon.com in the first quarter valued at about $444,000. Sunbelt Securities Inc. lifted its position in Amazon.com by 1.9% in the first quarter. Sunbelt Securities Inc. now owns 88,838 shares of the e-commerce giant’s stock valued at $18,502,000 after purchasing an additional 1,658 shares during the period. Finally, Guardian Partners Inc. boosted its holdings in Amazon.com by 10.4% in the 1st quarter. Guardian Partners Inc. now owns 23,088 shares of the e-commerce giant’s stock valued at $4,820,000 after purchasing an additional 2,182 shares in the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.
Amazon.com Price Performance AMZN opened at $278.09 on Tuesday. Amazon.com, Inc. has a 1 year low of $196.00 and a 1 year high of $287.20. The company’s 50 day simple moving average is $246.69 and its 200 day simple moving average is $237.78. The stock has a market capitalization of $3.00 trillion, a PE ratio of 22.37, a P/E/G ratio of 1.83 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.
Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, topping the consensus estimate of $1.82 by $3.93. The firm had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. Amazon.com’s revenue for the quarter was up 19.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.68 earnings per share. As a group, sell-side analysts expect that Amazon.com, Inc. will post 8.05 EPS for the current year.
Insider Buying and Selling at Amazon.com In related news, SVP David Zapolsky sold 9,270 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $268.53, for a total value of $2,489,273.10. Following the transaction, the senior vice president directly owned 41,190 shares of the company’s stock, valued at approximately $11,060,750.70. This trade represents a 18.37% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the business’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $262.38, for a total value of $620,003.94. Following the sale, the vice president directly owned 119,780 shares of the company’s stock, valued at approximately $31,427,876.40. This trade represents a 1.93% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 77,867 shares of company stock worth $20,532,092. 8.90% of the stock is currently owned by company insiders.
Amazon.com News Summary Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Amazon’s recent earnings breakout is attracting continued investor interest. Renewed AWS growth and accelerating AI demand could support earnings momentum and a post-earnings drift higher. Amazon: A Post-Earnings Drift Candidate Positive Sentiment: Analysts and market commentators point to accelerating cloud revenue as a potential long-term driver that could help Amazon grow beyond its recently achieved $3 trillion market capitalization. Amazon Just Joined the $3 Trillion Club Positive Sentiment: A reported institutional and retail “Power Inflow” alert provided a short-term bullish trading signal, helping reinforce buying momentum in AMZN. Amazon Shares Up After Key Trading Signal Positive Sentiment: Amazon’s Zoox robotaxi subsidiary began paid rides in Las Vegas after receiving a federal commercial exemption, marking a meaningful commercialization milestone for the company’s autonomous-vehicle investment. Zoox to Begin Paid Rides Positive Sentiment: Amazon Pharmacy is offering eligible Medicare patients access to certain weight-loss drugs for $50 per month, potentially expanding customer engagement and the company’s healthcare presence. Amazon Pharmacy Rolls Out Low-Cost Weight-Loss Drugs Wall Street Analysts Forecast Growth A number of brokerages have recently issued reports on AMZN. Robert W. Baird set a $310.00 target price on Amazon.com and gave the stock an “outperform” rating in a research note on Friday, July 31st. Benchmark lifted their price target on Amazon.com from $370.00 to $400.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Telsey Advisory Group set a $335.00 price objective on Amazon.com and gave the stock an “outperform” rating in a report on Friday, July 31st. HSBC reiterated a “buy” rating and issued a $310.00 price target on shares of Amazon.com in a report on Friday, July 31st. Finally, Citigroup reaffirmed a “buy” rating and set a $350.00 price objective (up from $325.00) on shares of Amazon.com in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Amazon.com has an average rating of “Moderate Buy” and an average price target of $322.56.
View Our Latest Stock Analysis on AMZN
Amazon.com Company Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
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Amazon (AMZN +0.81%) recently joined the $3 trillion club, with its stock driven higher by better-than-expected earnings results. The company's cloud computing platform, Amazon Web Services (AWS), was a standout in the results, and it could be the business that propels the company's value even higher over the next few years. In fact, Amazon could become a $5 trillion company by 2029 simply by sticking with its current course.
Over time, Amazon should see continued acceleration in AWS, ultimately producing considerable earnings and free cash flow for the business. Meanwhile, its core retail operations are increasingly profitable, driven by its growing advertising business and unparalleled scale.
Image source: The Motley Fool.
Can AWS keep accelerating? Amazon's cloud computing business saw revenue grow 37% year over year, marking the fifth consecutive quarter of accelerating revenue growth for the segment. It's also the highest growth rate for the business in 18 quarters, despite doubling in size during that period.
That growth was bolstered by Amazon's strength in artificial intelligence services (Bedrock, SageMaker, training, and inference) and its own chips business (Trainium, Inferentium, and Graviton). Management said both segments reached a $25 billion annualized run rate last quarter, and both are growing at a triple-digit rate. Meanwhile, its core cloud computing services continued to grow quickly, providing a solid base for the business.
There's a lot of growth left, too. Amazon ended the quarter with $496 billion in contracted revenue. That includes deals with OpenAI and Anthropic to use its Trainium chips. It's set to provide 2 GW worth of Trainium chips to OpenAI. Anthropic will use up to 5 GW of Trainium and Graviton cores over its 10-year agreement with Amazon. As these deals ramp up, AWS should continue to see accelerating growth.
Importantly, the deals also involve the use of Amazon's custom silicon. Management has said that using its own chips rather than traditional GPUs yields better results for its customers and itself, enabling it to achieve wider operating margins. While many fear larger AI workloads will cut into AWS' margin, the push to use more Trainium chips and the massive scale of its growth should ensure margins continue to improve over time.
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It's worth noting that AWS isn't the only piece of the growth story at Amazon. Its retail business is quietly producing excellent results as well. The rest of its operations grew revenue by roughly 16% year over year last quarter, helped by shifting Prime Day from the third quarter to the second quarter. Still, double-digit growth for a business generating over $600 billion in annual revenue is pretty impressive.
What's more, margins are expanding for the retail business thanks to strong growth in advertising and improvements in its logistics network. Both should continue to push profitability higher, providing a solid base of earnings.
What could prevent Amazon from reaching $5 trillion? As mentioned, if Amazon continues on its current path, it should be able to reach a $5 trillion valuation in the near future. Strong revenue growth, plus an expanding operating margin, is a recipe for exceptional earnings growth. Meanwhile, the stock trades for just 22 times forward earnings.
Even if it maintains that earnings multiple, Amazon would only have to grow earnings an average of 18% per year to reach a $5 trillion market value by 2029. That's well within reason, considering the revenue expected to come to Amazon over the next couple of years through agreements with the leading AI labs, in addition to the continued growth of the retail business.
There are two big risks facing Amazon. The first is a collapse in demand for AI compute. While there are some edge cases where Anthropic or OpenAI is unable to pay on its commitments, those seem very unlikely. The bigger risk is that the hyperscalers build out more capacity than needed, and that weighs on pricing. That's mitigated by the upfront commitments signed with Amazon.
CEO Andy Jassy noted that the lead time for server expenses is a matter of months, and they have a useful life of about five years, with a payback period of just under three years. Servers make up the bulk of capital expenditures in most quarters, even as Amazon's standing up tons of new data centers to meet demand. But the tight lead time for servers gives it more leeway to pull back if it sees a drop in demand.
The massive capital required to meet the growing demand for compute will likely push Amazon's free cash flow further into negative territory. Investors may not be as keen to buy the tech stock if it's burning cash. Investors overly focused on near-term cash-flow challenges could weigh on the stock price. But I expect the company will start producing very strong free cash flow in 2028 and 2029, which will allow the stock to climb higher and hit the $5 trillion milestone.
Leading e-commerce and tech company Amazon (AMZN +0.81%) has been rallying recently, after posting strong quarterly earnings numbers, hitting a new all-time high of more than $287 along the way. It's now up around 19% for the year, and its market cap is hovering around $3 trillion. The business has been doing exceptionally well as its growth rate has been solid, and its growth opportunities are plentiful.
But has the stock gotten too expensive, or can it still be a good buy at its current levels?
Image source: Getty Images.
Amazon's cloud business has been taking off A key reason investors have been bullish on Amazon's stock of late has been due to its popular cloud platform, Amazon Web Services (AWS). In the most recent quarter, which ended on June 30, AWS achieved its fastest growth rate in 18 quarters -- 37%. Not only is that important from a growth angle, but AWS also generates the best margins for the business; thus, a strong performance will also boost the bottom line. Of the $27.5 billion in operating income that Amazon posted last quarter, $16.6 billion, or 61%, came from AWS.
Despite spending heavily on artificial intelligence (AI), investors are becoming bullish that Amazon's efforts are paying off; CEO Andy Jassy says that "our AI and chips businesses each eclipsed run rates of more than $25 billion." All in all, the business is doing exceptionally well, with Amazon beating expectations on top and bottom lines for this most recent quarter.
Although it's one of the most valuable stocks in the world, based on its profits, it doesn't appear to be too expensive, as its price-to-earnings (P/E) multiple is just 22.
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Is Amazon stock really as cheap as it looks? At a P/E of 22, Amazon stock looks like a bargain buy given that the average stock on the S&P 500 trades at a P/E multiple of 24. There is, however, a bit of an asterisk with that. While its earnings soared from $18.2 billion to $62.6 billion, a big reason was that due to other income of $53.4 billion, which Amazon says is mainly from investments in AI company Anthropic. Without that, its earnings would be significantly lighter, and the stock's valuation wouldn't be as low.
Amazon, however, does still trade at a reasonably modest forward P/E multiple of around 23, which is based on analyst projections for how it will do in the year ahead. While its earnings may be inflated due to investment gains, the tech stock is by no means absurdly overvalued, as the business has been doing incredibly well.
For long-term investors, Amazon can still be an excellent stock to buy and hold, as it stands to benefit significantly from AI.
Amazon v okrese Pecos v Texasu staví elektrárnu pro plánované datacentrum, která by mohla být největším zdrojem klimatického znečištění v USA. Má mít povolení vypouštět 33 milionů tun CO2 ročně.
As part of a planned data center in Pecos County, Texas, Amazon is investing in an on-site power plant that could become the largest source of climate pollution in the United States, according to The New York Times.
The NYT says the plant would burn natural gas and is permitted to release 33 million tons of carbon dioxide per year — more than any other power plant in the U.S.
In a statement, an Amazon spokesperson confirmed that the data center will “be powered by new on-site generation that won’t raise electricity costs for Texas families.” (Data centers face growing political opposition for a number of reasons, including their effect on electricity costs.)
AI has already had a significant impact on Amazon’s carbon emissions, which it reported were up 16% last year — the wrong direction for a company that pledged to eliminate its carbon emissions by 2040. And that could get worse as Amazon and tech companies back the development of huge natural gas plants to support their power-hungry data centers.
The Amazon spokesperson said, “The world looks different now than when we co-founded the climate pledge,” while also claiming, “Our commitment hasn’t changed.”
Shares of e-commerce and cloud computing leader Amazon.com (AMZN -0.14%) jumped 14% in July, according to data from S&P Global Market Intelligence.
For context, the S&P 500 index was essentially flat -- it slipped about 0.1% -- and the tech-heavy Nasdaq Composite index declined 3.2%.
Through Thursday, Aug. 6, Amazon stock has gained 18% in 2026. The S&P 500 has returned 13.4% over this period.
Image source: Getty Images.
Strong Q2 results On July 31, Amazon stock jumped 15.3%, following the release of its second-quarter results the prior afternoon.
Amazon reported quarterly revenue of $200.6 billion, up 20% year over year. This result easily beat Wall Street's consensus estimate of about $196.8 billion. Net income was $62.6 billion, or $5.75 per share, up 242% from $18.2 billion, or $1.68 per share, in the year-ago period.
The quarter's net income included a non-operating pre-tax "other income" of $53.4 billion, primarily from the company's investments in Anthropic, an artificial intelligence (AI) model maker best known for its Claude family of large-language models.
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Segment revenue results:
North America sales increased 16% to $116.2 billion. International sales increased 15% to $42.2 billion. Amazon Web Services (AWS) -- Its cloud computing services business's sales increased 37% to $42.2 billion. This performance was driven by strong demand for AI capabilities. Operating income results:
North America's operating income was $9.1 billion, up 21% year over year. International's operating income was $1.7 billion, up 13%. AWS's operating income was $16.6 billion, up a whopping 63%. "AWS is booming, growing 36.7% year-over-year in Q2 -- our fastest growth in 18 quarters -- and our AI and Chips businesses each eclipsed run rates of more than $25 billion," said CEO Andy Jassy in the earnings release. Jassy also called out the company's record delivery speeds in the first half of the year: "Over 40% more items delivered same-day or overnight, with Grocery and Everyday Essentials growing meaningfully faster than the rest of the business." Lastly, Advertising had another strong quarter with 26% year-over-year growth, he added.
Looking ahead In the third quarter, Amazon expects revenue between $197.0 billion and $202.0 billion, representing year-over-year growth of 9% to 12%. Excluding the impact of Prime Day in both 2025 and 2026, the company said third-quarter growth would be nearly 400 basis points (0.4%) higher.
Operating income is expected to be between $22.5 billion and $26.5 billion, compared with $17.4 billion in the prior year's quarter. This would equate to growth of 29% to 52%.
In Q3 2025, operating income included two special charges: $2.5 billion related to a legal settlement with the Federal Trade Commission and $1.8 billion in estimated severance costs. Without these charges, operating income would have been $21.7 billion.
AWS zrychlil růst tržeb na 37 % a s marží 39,4 % vytvořil 61 % provozního zisku Amazonu ve 2. čtvrtletí. Firma zároveň plánuje investice do infrastruktury za 220 mld. USD.
SummaryI rate Amazon a buy over 12–36 months, given AWS-led earnings growth and improving retail economics, but not a Strong Buy due to valuation demands.AWS reaccelerated to 37% revenue growth and 39.4% margin, driving 61% of Q2 operating income from just 21% of revenue.Retail's profitability is rising, with North America delivering a 7.9% margin and third-party advertising and subscription services enhancing monetization.Amazon's $220B infrastructure spend must translate into revenue and cash flow by 2027 to justify the current 31.8x EV/operating income multiple. hapabapa/iStock Editorial via Getty Images
Executive Summary I rate Amazon as a buy over the next 12 to 36 months. Amazon’s operating results are better than they were a year ago, AWS has accelerated without giving up margin, and retail now
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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.
Jeff Bezos oznámil plán prodat téměř 4 miliardy USD akcií Amazonu, což poslalo akcie 4. srpna dolů o více než 2 % po rekordním závěru. Firma mezitím oznámila růst tržeb ve 2. čtvrtletí o 20 % na 200,6 miliardy USD.
Key Takeaways Amazon's planned insider share sale followed record highs after strong second-quarter results and guidance.Amazon posted 20% sales growth as AWS accelerated, while boosting 2026 AI and data-center spending.AMZN continues seeing strength across cloud, retail, advertising and Prime despite premium valuation. Jeff Bezos has filed to sell nearly $4 billion worth of Amazon (AMZN - Free Report) shares, days after the company posted a blowout second-quarter report. AMZN shares fell more than 2% on Aug. 4 after Bezos’ filing, but had already rallied to a record close of $284.02 the previous day and roughly 20% since the July 30 earnings report, pushing the market cap past $3 trillion.
The pre-arranged sale, executed under a trading plan adopted in November 2025, triggered a brief pullback in the stock. Yet the filing looks far more like a scheduled, tax-efficient liquidity event tied to a record share price than a signal about the company's outlook, and investors focused on fundamentals have every reason to stay the course, treating any near-term weakness as an opportunity rather than a warning sign.
Q2 Strength Sets the ToneAmazon's second-quarter net sales rose 20% to $200.6 billion, while operating income jumped 43% to $27.5 billion. AWS, the cloud unit, delivered its fastest growth in 18 quarters, with sales up 37% to a $169 billion annualized run rate and segment operating income nearly doubling.
For the third quarter, the company guided net sales toward $197-$202 billion and operating income between $22.5 billion and $26.5 billion, noting that growth would look meaningfully higher excluding the calendar shift of Prime Day into June. That guidance reflects continued momentum rather than deceleration, keeping the earnings narrative constructive into year-end as management prioritizes long-term infrastructure investment over near-term margin optimization across its fastest-growing segments. Amazon raised its full-year 2026 capital expenditure guidance to roughly $220 billion, up from about $200 billion, to fund continued AI infrastructure and data-center spending.
The Zacks Consensus Estimate for AMZN's 2026 earnings is pegged at $13.11 per share, indicating a 82.85% increase from the figure reported in the year-ago quarter.
Cloud, Retail and Prime Fuel the Next LegAWS' AI and custom chips businesses each now exceed a $25 billion annualized run rate, growing triple-digit percentages, aided by expanding Trainium adoption from labs including Anthropic and OpenAI and the general availability of Graviton5. Amazon Bedrock keeps broadening its foundation-model roster while customer spending accelerates. On the retail side, Amazon Now ultra-fast delivery expanded into dozens of new cities, Alexa for Shopping usage nearly doubled, and Amazon Business crossed $60 billion in annualized gross sales. Prime Video drew strong viewership from new originals and live sports, reinforcing the flywheel that keeps Prime members engaged and spending across categories, including grocery and everyday essentials, growing faster than the core business, while record delivery speeds strengthen customer loyalty across Amazon's broader retail ecosystem.
Valuation and Competitive LandscapeNow, let's look at the value Amazon offers investors at current levels. AMZN is trading at a premium with a forward 12-month P/S of 3.27X compared with the Zacks Internet - Commerce industry's 1.7X, reflecting a stretched valuation.
AMZN’s P/S F12M Ratio Depicts Stretched Valuation
Image Source: Zacks Investment Research
In cloud infrastructure, Amazon's primary rivals remain Alphabet (GOOGL - Free Report) -owned Google, Microsoft (MSFT - Free Report) and Oracle (ORCL - Free Report) . Google keeps expanding Gemini-powered cloud tools, Microsoft leverages its deep Azure-OpenAI partnership, and Oracle keeps scaling database and AI workloads at pace, yet AWS' reaccelerating growth and expanding order backlog suggest Amazon is holding its own against Google, Microsoft and Oracle even as all three continue investing aggressively across the same booming cloud infrastructure race worldwide, underscoring that Amazon's premium multiple is being earned through steady execution rather than momentum alone.
Shares of Amazon have returned 30.6% in the past six-month period, outperforming peers, the broader Zacks Retail-Wholesale sector’s increase of 5.7% and the S&P 500 index’s return of 10.8%.
AMZN’s 6-Month Performance
Image Source: Zacks Investment Research
Why Investors Should Stay InvestedAmazon's overall fundamentals look sturdy heading into the back half of 2026. AWS reacceleration, a broadening AI and chips business, disciplined operating leverage in North America, and steady advertising growth of 26% year over year support the third-quarter guidance range. Elevated capital expenditure reflects investment in data-center and AI capacity that management expects to convert into future revenues rather than a drag on the business.
Against this backdrop, Bezos's routine, pre-scheduled share sale should not be read as a fundamental red flag. With cloud, retail, advertising and Prime all contributing to growth simultaneously, Amazon still offers investors a diversified, innovation-driven growth story, and the current setup favors buying dips or staying invested through the next several quarters rather than reacting to a single scheduled insider transaction tied to a record close, since the underlying business momentum remains firmly intact heading into 2027. Amazon currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amazon poprvé překonal tržní kapitalizaci 3 biliony USD po zveřejnění rekordních výsledků za 2. čtvrtletí. Tržby vzrostly meziročně o 20 % na 200,61 miliardy USD.
SummaryAmazon surpassed a $3 trillion market cap, driven by record Q2 2026 results and robust fundamentals, not just multiple expansion.Q2 revenue reached $200.61 billion (+20% YoY), AWS grew 36.7% YoY, and operating income soared 43% YoY to $27.5 billion with a 13.7% margin.CapEx guidance increased to $220 billion for 2026, but management emphasized demand is locked in, with a $496 billion AWS backlog growing triple digits YoY.I remain bullish as AWS, AI, and advertising scale rapidly; FCF inflection is the next catalyst, and $3 trillion is a milestone, not a ceiling. hapabapa/iStock Editorial via Getty Images
The $3 trillion club just added its newest member. On August 3rd, shares of Amazon.com, Inc. (AMZN) closed at a fresh all-time high and pushed the company's market cap above $3 trillion for the
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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.
Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.
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Aureus Asset Management LLC ve 1. čtvrtletí zvýšila svůj podíl v Amazon.com o 4,0 % a koupila dalších 10 761 akcií. Nyní drží 282 835 akcií v hodnotě 58,906,000 USD.
Aureus Asset Management LLC lifted its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 4.0% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 282,835 shares of the e-commerce giant’s stock after purchasing an additional 10,761 shares during the quarter. Amazon.com comprises 3.9% of Aureus Asset Management LLC’s investment portfolio, making the stock its 4th biggest holding. Aureus Asset Management LLC’s holdings in Amazon.com were worth $58,906,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other large investors also recently made changes to their positions in the company. MilWealth Group LLC increased its holdings in shares of Amazon.com by 79.0% during the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after acquiring an additional 79 shares in the last quarter. Lifetime Wealth Management P.C. acquired a new position in shares of Amazon.com during the fourth quarter worth approximately $45,000. Elkhorn Partners Limited Partnership lifted its holdings in shares of Amazon.com by 900.0% in the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock worth $46,000 after purchasing an additional 180 shares in the last quarter. Fairway Wealth LLC lifted its holdings in shares of Amazon.com by 95.6% in the 4th quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant’s stock worth $51,000 after purchasing an additional 108 shares in the last quarter. Finally, Prudent Man Investment Management Inc. grew its position in Amazon.com by 87.7% in the 4th quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant’s stock valued at $53,000 after purchasing an additional 107 shares during the period. 72.20% of the stock is currently owned by institutional investors and hedge funds.
Key Headlines Impacting Amazon.com Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AWS and AI remain the primary bullish catalysts. Coverage highlights accelerating AWS growth, strong demand for AI infrastructure, and management’s view that much of AWS capacity is committed through 2028. Investors are increasingly seeing Amazon’s AI spending translate into cloud revenue and profits. Amazon’s AI Story Is Bigger Than You Think Positive Sentiment: Analyst sentiment remains favorable. Amazon was included in Zacks’ Strong Buy and momentum lists, while reports cited analyst upgrades and price targets above the current trading range. The bullish case is supported by second-quarter revenue of $200.6 billion, 19.6% year-over-year growth, and a significant earnings beat. Wall Street’s Bullish Views on Amazon Positive Sentiment: Zoox is moving toward commercialization. Amazon’s self-driving unit received approval for driverless vehicles and plans to begin paid robotaxi rides in Las Vegas on August 10. The launch provides a potential long-term growth option beyond retail, cloud, and advertising. Amazon’s Zoox to Start Paid Robotaxi Rides Neutral Sentiment: Amazon’s Anthropic investment boosted reported results. Second-quarter net income included approximately $53.4 billion in largely non-operating gains tied to Anthropic investments. The gain validates the strategic value of Amazon’s AI holdings, but it is not recurring operating profit and may make underlying earnings comparisons less clear. Amazon’s Anthropic-Related Gain Negative Sentiment: Jeff Bezos’ planned sale is weighing on sentiment. The founder disclosed plans to sell 15 million shares worth roughly $4.1 billion under a pre-arranged trading plan. Amazon executive Douglas Herrington also sold 1,000 shares, adding to supply concerns after the stock reached record levels. Jeff Bezos Amazon Share Sale Negative Sentiment: Legal and spending risks remain. An appeals court allowed Perplexity’s AI shopping agents to access Amazon’s platform, while New Jersey sued Amazon over alleged anticompetitive treatment of delivery contractors. Separately, the company’s large AI data-center commitments and capital-spending plans raise concerns about returns and free cash flow. Amazon.com Stock Performance NASDAQ AMZN opened at $272.65 on Thursday. Amazon.com, Inc. has a 1 year low of $196.00 and a 1 year high of $287.20. 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 firm has a market cap of $2.94 trillion, a price-to-earnings ratio of 21.93, a PEG ratio of 1.85 and a beta of 1.45. The company has a fifty day moving average price of $246.31 and a 200-day moving average price of $236.97.
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, beating the consensus estimate of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company had revenue of $200.61 billion during the quarter, compared to the consensus estimate of $197.03 billion. During the same quarter in the prior year, the company posted $1.68 earnings per share. The firm’s revenue for the quarter was up 19.6% on a year-over-year basis. As a group, equities research analysts predict that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.
Insiders Place Their Bets In other news, CEO Andrew R. Jassy sold 20,000 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $263.42, for a total value of $5,268,400.00. Following the transaction, the chief executive officer owned 2,205,766 shares in the company, valued at $581,042,879.72. The trade was a 0.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of the company’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $263.40, for a total value of $4,074,007.80. Following the completion of the transaction, the chief executive officer directly owned 14,159 shares of the company’s stock, valued at approximately $3,729,480.60. This represents a 52.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 77,867 shares of company stock worth $20,532,092 in the last ninety days. 8.90% of the stock is owned by corporate insiders.
Analyst Upgrades and Downgrades Several research analysts have weighed in on the stock. Piper Sandler restated an “overweight” rating and set a $320.00 price objective (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Needham & Company LLC reiterated a “buy” rating and set a $300.00 price objective on shares of Amazon.com in a report on Friday, July 31st. KeyCorp boosted their target price on shares of Amazon.com from $335.00 to $350.00 and gave the stock an “overweight” rating in a research report on Friday, July 31st. Morgan Stanley reissued an “overweight” rating and set a $335.00 target price (up from $330.00) on shares of Amazon.com in a research report on Friday, July 31st. Finally, UBS Group set a $318.00 target price on shares of Amazon.com and gave the stock a “buy” rating in a report on Friday, July 31st. Fifty-six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Amazon.com has a consensus rating of “Moderate Buy” and a consensus target price of $322.56.
Read Our Latest Stock Report on AMZN
Amazon.com Company Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
Further Reading Five stocks we like better than Amazon.com SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth
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« PREVIOUS HEADLINECoronation Fund Managers Ltd. Has $68.92 Million Stock Holdings in Amazon.com, Inc. $AMZN
NEXT HEADLINE »Davis R M Inc. Increases Stake in Amazon.com, Inc. $AMZN
Davis R M Inc. boosted its holdings in Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 4.2% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 675,465 shares of the e-commerce giant’s stock after purchasing an additional 27,083 shares during the quarter. Amazon.com makes up about 2.5% of Davis R M Inc.’s investment portfolio, making the stock its 10th largest holding. Davis R M Inc.’s holdings in Amazon.com were worth $140,679,000 as of its most recent SEC filing.
A number of other institutional investors and hedge funds also recently modified their holdings of the business. MilWealth Group LLC raised its stake in Amazon.com by 79.0% during the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock worth $41,000 after acquiring an additional 79 shares during the period. Lifetime Wealth Management P.C. acquired a new position in Amazon.com in the fourth quarter valued at approximately $45,000. Elkhorn Partners Limited Partnership grew its holdings in shares of Amazon.com by 900.0% during the fourth quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock valued at $46,000 after purchasing an additional 180 shares during the last quarter. Fairway Wealth LLC grew its holdings in shares of Amazon.com by 95.6% during the fourth quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant’s stock valued at $51,000 after purchasing an additional 108 shares during the last quarter. Finally, Prudent Man Investment Management Inc. raised its position in shares of Amazon.com by 87.7% during the 4th quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant’s stock worth $53,000 after purchasing an additional 107 shares during the period. 72.20% of the stock is owned by institutional investors and hedge funds.
Insider Buying and Selling at Amazon.com In related news, SVP David Zapolsky sold 9,270 shares of Amazon.com stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the transaction, the senior vice president directly owned 41,190 shares of the company’s stock, valued at $11,060,750.70. The trade was a 18.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew R. Jassy sold 20,000 shares of the business’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $263.42, for a total transaction of $5,268,400.00. Following the completion of the sale, the chief executive officer owned 2,205,766 shares in the company, valued at approximately $581,042,879.72. This trade represents a 0.90% 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. Over the last three months, insiders have sold 77,867 shares of company stock valued at $20,532,092. Corporate insiders own 8.90% of the company’s stock.
Amazon.com News Summary Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AWS and AI remain the primary bullish catalysts. Coverage highlights accelerating AWS growth, strong demand for AI infrastructure, and management’s view that much of AWS capacity is committed through 2028. Investors are increasingly seeing Amazon’s AI spending translate into cloud revenue and profits. Amazon’s AI Story Is Bigger Than You Think Positive Sentiment: Analyst sentiment remains favorable. Amazon was included in Zacks’ Strong Buy and momentum lists, while reports cited analyst upgrades and price targets above the current trading range. The bullish case is supported by second-quarter revenue of $200.6 billion, 19.6% year-over-year growth, and a significant earnings beat. Wall Street’s Bullish Views on Amazon Positive Sentiment: Zoox is moving toward commercialization. Amazon’s self-driving unit received approval for driverless vehicles and plans to begin paid robotaxi rides in Las Vegas on August 10. The launch provides a potential long-term growth option beyond retail, cloud, and advertising. Amazon’s Zoox to Start Paid Robotaxi Rides Neutral Sentiment: Amazon’s Anthropic investment boosted reported results. Second-quarter net income included approximately $53.4 billion in largely non-operating gains tied to Anthropic investments. The gain validates the strategic value of Amazon’s AI holdings, but it is not recurring operating profit and may make underlying earnings comparisons less clear. Amazon’s Anthropic-Related Gain Negative Sentiment: Jeff Bezos’ planned sale is weighing on sentiment. The founder disclosed plans to sell 15 million shares worth roughly $4.1 billion under a pre-arranged trading plan. Amazon executive Douglas Herrington also sold 1,000 shares, adding to supply concerns after the stock reached record levels. Jeff Bezos Amazon Share Sale Negative Sentiment: Legal and spending risks remain. An appeals court allowed Perplexity’s AI shopping agents to access Amazon’s platform, while New Jersey sued Amazon over alleged anticompetitive treatment of delivery contractors. Separately, the company’s large AI data-center commitments and capital-spending plans raise concerns about returns and free cash flow. Analyst Ratings Changes AMZN has been the topic of several analyst reports. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $320.00 target price (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Monness Crespi & Hardt boosted their price target on shares of Amazon.com from $315.00 to $330.00 and gave the company a “buy” rating in a report on Friday, July 31st. Oppenheimer reiterated an “outperform” rating on shares of Amazon.com in a research report on Friday, July 31st. Needham & Company LLC reissued a “buy” rating and set a $300.00 target price on shares of Amazon.com in a research note on Friday, July 31st. Finally, Roth Capital restated a “buy” rating and issued a $325.00 target price on shares of Amazon.com in a research report on Monday. Fifty-six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $322.56.
View Our Latest Research Report on Amazon.com
Amazon.com Price Performance Shares of NASDAQ:AMZN opened at $272.65 on Thursday. The stock has a market cap of $2.94 trillion, a price-to-earnings ratio of 21.93, a PEG ratio of 1.85 and a beta of 1.45. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. Amazon.com, Inc. has a 12 month low of $196.00 and a 12 month high of $287.20. The stock’s 50 day moving average price is $246.31 and its 200 day moving average price is $236.97.
Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its quarterly 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 return on equity of 18.00% and a net margin of 17.44%.The firm had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. During the same period last year, the company posted $1.68 EPS. The firm’s quarterly revenue was up 19.6% on a year-over-year basis. Equities research analysts anticipate that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.
Amazon.com Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
See Also Five stocks we like better than Amazon.com SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth
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« PREVIOUS HEADLINEAureus Asset Management LLC Buys 10,761 Shares of Amazon.com, Inc. $AMZN
B&D White Capital Company LLC raised its position in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 4.6% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 737,383 shares of the e-commerce giant’s stock after buying an additional 32,438 shares during the quarter. Amazon.com comprises 19.0% of B&D White Capital Company LLC’s portfolio, making the stock its largest position. B&D White Capital Company LLC’s holdings in Amazon.com were worth $153,575,000 at the end of the most recent quarter.
Several other hedge funds also recently made changes to their positions in AMZN. State of Wyoming increased its holdings in shares of Amazon.com by 1.8% in the 1st quarter. State of Wyoming now owns 17,377 shares of the e-commerce giant’s stock valued at $3,619,000 after acquiring an additional 311 shares during the last quarter. GSG Advisors LLC boosted its holdings in Amazon.com by 1.7% in the first quarter. GSG Advisors LLC now owns 25,699 shares of the e-commerce giant’s stock worth $5,352,000 after purchasing an additional 428 shares during the period. Envision Financial Transparency LLC acquired a new position in Amazon.com in the first quarter worth $458,000. Parker Investment Management LLC increased its stake in Amazon.com by 4.1% during the first quarter. Parker Investment Management LLC now owns 2,827 shares of the e-commerce giant’s stock valued at $589,000 after purchasing an additional 112 shares during the last quarter. Finally, Wealthspire Retirement LLC increased its stake in Amazon.com by 4.5% during the first quarter. Wealthspire Retirement LLC now owns 22,903 shares of the e-commerce giant’s stock valued at $4,770,000 after purchasing an additional 986 shares during the last quarter. Institutional investors and hedge funds own 72.20% of the company’s stock.
Insider Activity In other news, VP Shelley Reynolds sold 2,363 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $262.38, for a total value of $620,003.94. Following the completion of the transaction, the vice president owned 119,780 shares of the company’s stock, valued at approximately $31,427,876.40. This represents a 1.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of Amazon.com stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $263.40, for a total transaction of $4,074,007.80. Following the sale, the chief executive officer owned 14,159 shares in the company, valued at approximately $3,729,480.60. This represents a 52.21% 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 77,867 shares of company stock worth $20,532,092 over the last ninety days. 8.90% of the stock is currently owned by company insiders.
Wall Street Analysts Forecast Growth A number of research firms have recently issued reports on AMZN. Roth Capital restated a “buy” rating and issued a $325.00 price target on shares of Amazon.com in a research report on Monday. KeyCorp increased their price objective on shares of Amazon.com from $335.00 to $350.00 and gave the stock an “overweight” rating in a research note on Friday, July 31st. Truist Financial lifted their target price on Amazon.com from $320.00 to $350.00 and gave the company a “buy” rating in a research note on Friday, July 31st. TD Securities raised Amazon.com to a “buy” rating in a report on Monday, April 13th. Finally, Monness Crespi & Hardt increased their price target on Amazon.com from $315.00 to $330.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Fifty-six analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Amazon.com presently has an average rating of “Moderate Buy” and an average target price of $322.56.
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Key Headlines Impacting Amazon.com Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AWS and AI remain the primary bullish catalysts. Coverage highlights accelerating AWS growth, strong demand for AI infrastructure, and management’s view that much of AWS capacity is committed through 2028. Investors are increasingly seeing Amazon’s AI spending translate into cloud revenue and profits. Amazon’s AI Story Is Bigger Than You Think Positive Sentiment: Analyst sentiment remains favorable. Amazon was included in Zacks’ Strong Buy and momentum lists, while reports cited analyst upgrades and price targets above the current trading range. The bullish case is supported by second-quarter revenue of $200.6 billion, 19.6% year-over-year growth, and a significant earnings beat. Wall Street’s Bullish Views on Amazon Positive Sentiment: Zoox is moving toward commercialization. Amazon’s self-driving unit received approval for driverless vehicles and plans to begin paid robotaxi rides in Las Vegas on August 10. The launch provides a potential long-term growth option beyond retail, cloud, and advertising. Amazon’s Zoox to Start Paid Robotaxi Rides Neutral Sentiment: Amazon’s Anthropic investment boosted reported results. Second-quarter net income included approximately $53.4 billion in largely non-operating gains tied to Anthropic investments. The gain validates the strategic value of Amazon’s AI holdings, but it is not recurring operating profit and may make underlying earnings comparisons less clear. Amazon’s Anthropic-Related Gain Negative Sentiment: Jeff Bezos’ planned sale is weighing on sentiment. The founder disclosed plans to sell 15 million shares worth roughly $4.1 billion under a pre-arranged trading plan. Amazon executive Douglas Herrington also sold 1,000 shares, adding to supply concerns after the stock reached record levels. Jeff Bezos Amazon Share Sale Negative Sentiment: Legal and spending risks remain. An appeals court allowed Perplexity’s AI shopping agents to access Amazon’s platform, while New Jersey sued Amazon over alleged anticompetitive treatment of delivery contractors. Separately, the company’s large AI data-center commitments and capital-spending plans raise concerns about returns and free cash flow. Amazon.com Price Performance NASDAQ AMZN opened at $272.65 on Thursday. The company has a 50-day moving average price of $246.31 and a two-hundred day moving average price of $236.97. Amazon.com, Inc. has a 52 week low of $196.00 and a 52 week high of $287.20. The stock has a market cap of $2.94 trillion, a price-to-earnings ratio of 21.93, a price-to-earnings-growth ratio of 1.85 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.
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, topping the consensus estimate of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The business had revenue of $200.61 billion during the quarter, compared to the consensus estimate of $197.03 billion. During the same period in the previous year, the firm posted $1.68 earnings per share. The business’s revenue was up 19.6% on a year-over-year basis. Analysts forecast that Amazon.com, Inc. will post 8.05 EPS for the current year.
Amazon.com Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
Recommended Stories Five stocks we like better than Amazon.com SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 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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Anthropic, one of the world's fastest-growing AI companies, plans to go public in October. It was valued at $965 billion after its latest funding round in May, and it's reportedly targeting an IPO valuation of at least $1 trillion.
That means Amazon's (AMZN +0.44%) 21% stake in Anthropic, which was built up with an $8 billion investment in 2024 and a $5 billion investment earlier this year, could be worth more than $210 billion when that IPO finally happens. What would that mean for Amazon's investors?
Image source: Getty Images.
Would Anthropic's IPO boost Amazon's stock? Amazon has already recorded massive unrealized gains from its investment in Anthropic. In the second quarter of 2026, its net income surged 245% year over year from $18.2 billion to $62.6 billion. Most of that gain came from its investment in Anthropic, which boosted its "other" net income from $1.1 billion to $53.4 billion. That was two-thirds of the quarter's pre-tax income.
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Amazon's own numbers already value Anthropic at its last known valuation of $965 billion. Therefore, a market debut at $1 trillion wouldn't instantly boost its net income -- since those gains have already been recorded incrementally under generally accepted accounting principles (GAAP) in its statements. In other words, those massive gains have already been priced into Amazon's stock. But Amazon's stock could also slump if Anthropic's IPO flops.
Yet Anthropic's annualized revenue reached $9 billion at the end of 2025 and soared to $47 billion in mid-May. It claims its operating profit will turn positive for the first time in the second quarter of 2026, driven by robust enterprise demand for its Claude AI models. At $1 trillion, it would be valued at 21 times its trailing annualized revenue (as of May). Many growth-oriented investors could consider that a fair valuation for a hyper-growth AI stock. Those clear catalysts could attract more investors to its IPO and drive its valuation even higher.
Anthropic is also required to use Amazon Web Services (AWS) as its primary cloud infrastructure provider and spend billions on Amazon's custom Trainium AI chips. So while Anthropic's expansion will be capital-intensive, a lot of that cash will flow back to Amazon. That's great news for Amazon, since it generates most of its operating profits from AWS.
Anthropic's rapid growth and upcoming IPO will be major catalysts for Amazon's stock. Its expansion directly supports AWS' growth, and a successful market debut would directly boost Amazon's net income. Amazon could also eventually sell some of those shares to fund its own infrastructure investments, buybacks, or future dividends.
Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
Amazon Pharmacy nabídne oprávněným příjemcům Medicare léky na hubnutí za 50 USD měsíčně v rámci nového programu Medicare Bridge. Zajistí i automatické ověření nároku, předběžný souhlas, fakturaci, doručení domů i vyzvednutí v prodejně. Doručení ve stejný den je dostupné ve více než 3 100 městech a obcích USA a do konce roku 2026 se má rozšířit na téměř 4 500 lokalit.
Item 1 of 2 A woman injects herself with Zepbound, a GLP-1 weight-loss drug, at her home in Memphis, Tennessee, U.S., July 30, 2026. REUTERS/Karen Pulfer Focht
[1/2]A woman injects herself with Zepbound, a GLP-1 weight-loss drug, at her home in Memphis, Tennessee, U.S., July 30, 2026. REUTERS/Karen Pulfer Focht Purchase Licensing Rights, opens new tab
CompaniesAug 6 (Reuters) - Amazon's (AMZN.O), opens new tab pharmacy unit said on Thursday it would offer weight-loss drugs to eligible Medicare beneficiaries for $50 a month through a new federal program created to expand access to the highly sought-after treatments.
The company said it would automate eligibility checks, prior authorization and billing, while offering home delivery and in-store pickup, to help patients access the drugs faster and reduce the administrative burden.
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The U.S. government's Medicare bridge program, launched last month, allows eligible beneficiaries to obtain drugs including Novo Nordisk's (NOVOb.CO), opens new tab Wegovy in injection or pill form, as well as Eli Lilly's (LLY.N), opens new tab four-dose Zepbound KwikPen injection and the Foundayo pill, through the end of 2027. The program does not cover single-dose Zepbound vials or pens.
Amazon Pharmacy said it would initiate the enrolment process on a customer's behalf once the patient adds insurance and Medicare details to their account and a clinician submits an electronic prescription.
Most Amazon Pharmacy Bridge Program patients received a prior authorization decision in less than 24 hours, compared with the 72-hour timeframe allowed under the Medicare Bridge Program, Tanvi Patel, vice president and general manager of Amazon Pharmacy, told Reuters.
Many of the claims submitted have already resulted in completed orders, the company added.
Amazon Pharmacy launched electronic kiosks in its One Medical primary care locations last year to improve access and cut shipping costs.
One Medical, a national primary care provider Amazon acquired in 2023, allows patients to access primary and urgent care for an annual subscription fee of $199.
Same-day delivery is available in more than 3,100 U.S. cities and towns and is expected to expand to nearly 4,500 locations by the end of 2026, Amazon said.
Reporting by Sahil Pandey in Bengaluru; Editing by Jonathan Ananda
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Amazon přestavuje část datového kampusu v Indianě na větší AI supercluster pro trénink svých budoucích modelů AI. Plán počítá s nasazením více než 6 000 serverů s čipy Trainium.
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Amazon CEO Andy Jassy Bloomberg/Getty Images Amazon is redesigning part of a massive AI data center campus in rural Indiana into a sprawling cluster of powerful computers to build its next frontier AI models, Business Insider has exclusively learned.
Internal planning documents reviewed by Business Insider describe an effort to consolidate multiple data centers and deploy thousands of Trainium-powered AI servers.
According to people familiar with the matter, the effort is part of a broader initiative called "AGI Pivot" supporting the company's AGI organization and its future in-house AI models. These people asked not to be identified discussing private plans.
The documents suggest Amazon's frontier-model ambitions remain intact despite recent job cuts in its AGI organization and the wind-down of the previous Nova model series. The documents describe faster deployment schedules intended to provide enough computing capacity for the AGI organization to train its next big model before the end of this year, underscoring the urgency amid industrywide capacity constraints.
Maximizing returnsThe redesign also reflects Amazon's broader effort to maximize returns on its record AI infrastructure investments. By linking existing data centers into a larger, more efficient AI cluster, the company is making better use of infrastructure it has already paid for and operates.
The approach aligns with CEO Andy Jassy's comment last week that AI infrastructure should generate attractive long-term returns because data centers remain productive for decades while servers and networking equipment can be refreshed over time.
Working beside AnthropicThe Indiana campus includes facilities that are part of Project Rainier, the Trainium-powered AI supercomputer Amazon built primarily for Anthropic. The new AGI initiative is run out of the same huge data center complex, however, it will not affect the existing Project Rainier servers.
"We're always designing, upgrading, and improving our data center infrastructure to serve the diverse needs of our customers and teams," an Amazon spokesperson told Business Insider. "That work improves speed, cost, and sustainability so we can meet growing demand for compute to train and serve models on AWS."
The AGI SuperClusterThe planning documents suggest Amazon is racing to expand computing capacity for its next frontier AI model push.
One update describes an "emergent request" to deploy more than 6,000 Trainium-powered AI servers, speeding up launch schedules by several weeks. The accelerated timeline was intended to prepare Amazon's next AI model for this year's re:Invent conference, typically held in early December, according to this document.
The documents also describe a broader effort to consolidate computing across the Indiana campus into what Amazon calls an AGI SuperCluster, creating a "larger, more efficient" AI system to maximize performance.
To do that, Amazon is redesigning networking, storage, and fiber-optic infrastructure so multiple data centers function as one.
The project also converts some existing buildings into what Amazon calls "annexes," connecting them to neighboring data centers so they can share core networking equipment instead of operating independently. Some facilities are planning to replace older Trainium 2 systems with newer Trainium 3 servers.
Doubling down on frontier AIAmazon is significantly expanding its AI investment. The company recently raised its projected 2026 capital expenditures to $220 billion from $200 billion as demand for AI computing continues to outstrip available capacity and prices for some components rise.
The latest infrastructure effort fits a broader pattern inside Amazon. Business Insider previously reported on the company's push to upgrade its AI infrastructure through projects such as Houdini and Titus, while reorganizing its AGI division around a new frontier-model effort.
The initiative underscores the growing importance of Trainium inside Amazon. Last week, the company said its custom chip business, including Trainium AI chips and Graviton processors, is on pace to generate more than $25 billion in annual revenue, up from last quarter's $20 billion projection.
The planning documents also offer a glimpse of what Amazon's next frontier-model effort will require. They call for expanding data storage to support multimodal AI training, which requires processing large numbers of high-resolution images and repeatedly saving the model's progress.
One person familiar with the effort said the push has "not slowed down," despite last month's layoffs in the AGI organization.
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Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail operations, AWS, Alexa, and its secretive internal work 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 broke a story uncovering Amazon’s practice of deceptively enrolling customers in Prime and deliberately making cancellation difficult. A year later, the Federal Trade Commission sued the company, citing his reporting. That case culminated in a record $2.5 billion settlement in 2025.His reporting has earned 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. ExpertiseAmazon, Jeff Bezos, Andy Jassy, e-commerce, and cloud computing.Popular ArticlesAmazon:Internal Amazon emails give an exclusive look at how CEO Andy Jassy has started to run the company, with obsessive attention to the retail business and what some employees feel is micromanagingAndy Jassy will be the next CEO of Amazon. Insiders dish on what it's like to work for Jeff Bezos' successor, who built AWS into a $40 billion business.Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions. 'We have been deliberately confusing,' former employee says.Inside Amazon's flailing brick-and-mortar ambitions: missed projections, pressure to cut costs, and a war with Whole FoodsInside Amazon's complex employee-review system, where workers feel left in the dark and managers expect to give 5% of reports bad reviewsAfter 28 years, 'Day 2' finally arrives at AmazonAWS, Alexa, healthcare:Inside Amazon's struggle to break into the lucrative market for SaaS business applications, including an internal pitch to buy $38 billion HubSpotInside Amazon's struggle to crack Nvidia's AI-chip dominanceAmazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortagesAmazon is gutting its voice assistant, Alexa. Employees describe a division in crisis and huge losses on 'a wasted opportunity.'Amazon is working on a new 'Remarkable Alexa,' but internal politics and technical issues plague the projectAmazon projected huge losses from its healthcare business in 2024, but strong sales growth, internal document reveals
Amazon Amazon Web Services Cloud Computing More Generative AI Exclusive
Amazon zvýšil letošní kapitálové výdaje na 220 miliard USD z původních 200 miliard, hlavně kvůli pamětem. To podporuje Micron a naznačuje delší trvání boomu paměťových čipů.
Amazon (AMZN -1.72%) holds the record for the biggest spender in 2026's AI arms race. It's planning to spend $220 billion in capital expenditures this year, up from its initial $200 billion projection. And on its Q2 earnings call, Amazon cited one component as the driver of increasing its projection by $20 billion: memory.
There are a handful of memory chip manufacturers, but chief among them is Micron (MU +0.06%). Micron is a major player in this sector, and this forecast increase should give Micron investors confidence that the memory chip boom isn't just a flash in the pan; it could last for years.
Image source: Getty Images.
Multiple projections point toward lasting data center demand During Amazon's conference call, it also pointed out that even with its $220 billion in capital expenditures (capex), it wouldn't be able to obtain enough computing capacity to meet demand. This is bullish news for several companies in the AI industry, including Amazon itself. Amazon noted that its clients are still in the early stages of deploying AI on a wide scale, and that the amount of inference workloads will skyrocket in the near future. That means more computing capacity, which translates into huge demand for memory chips -- a commodity whose availability is already slim.
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Memory prices have skyrocketed this year due to insufficient supply amid surging demand. This translates into rising prices, benefiting companies like Micron, but costing consumers and AI hyperscalers a ton of money. However, the demand is clearly still there despite price hikes, so that points to potentially higher memory prices a year from now.
That is music to Micron investors' ears, as it could have a lot of room to run.
Micron's stock is cheap if the memory chip crunch drags into 2028 The memory chip producers aren't satisfied with their current capacity, so many are building new facilities to increase supply. However, there's no saying that what they bring online will be enough, and prices could remain elevated even after some of them start production. That's why Micron's management team told investors it expects market tightness to persist beyond 2027, indicating several quarters of strong growth ahead for Micron.
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Wall Street analysts back up this projection, as they estimate that Micron's revenue will increase at an 85% pace during fiscal year 2027, ending August 2027. Furthermore, its earnings per share are projected to rise from $73.43 in fiscal year 2026 to $155.56 in fiscal year 2027. Those are explosive growth rates, and will be easy to achieve if AI hyperscalers spend more in 2027 and memory chip prices stay high or rise.
However, the market isn't pricing this possibility into Micron's stock. Right now, it trades for 5.3 times fiscal year 2027 earnings.
MU PE Ratio (Forward 1y) data by YCharts
That's not an expensive price tag for Micron's stock, and if memory chip demand stays elevated for the foreseeable future, it could lead to a far higher stock price.
The biggest issue holding Micron's stock back is that no one knows how long the current wave of memory chip pricing strength will last. The memory chip market goes through boom-and-bust cycles regularly, with nobody able to predict the end. However, there is emerging evidence that this could be the longest-lasting memory chip boom yet. During its conference call, Amazon told investors it won't be able to bring enough computing capacity to meet demand in 2026, and likely sees that pattern extending into 2027 as well. Furthermore, demand for 2028 is already starting to pop up due to the shortages during the next year and a half. All of that points to the memory chip cycle lasting for a lot longer than normal, making Micron a solid investment right now while it's on sale.
