Amazon (AMZN -0.15%) may be best known as an e-commerce company, but the largest segment of its business is Amazon Web Services (AWS), primarily due to its impressive operating profit margin. During Amazon's second quarter (Q2) of 2026, AWS's operating profits rose at a jaw-dropping 64% pace, resulting in an incredible 39% operating margin.
That's a huge deal for Amazon's financial picture, and I think it's the single best reason to buy the stock, as it allows a smaller revenue segment to shine.
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AWS is the most important part of Amazon Amazon's business is broken up into three parts: North American commerce, International commerce, and AWS. In Q2, these business units accounted for 58%, 21%, and 21% of sales, respectively. Despite North American and International commerce making up 79% of total sales, they only account for about 40% of operating profits. AWS accounts for 60% despite being a much smaller portion of sales.
Why is that the case?
It's because of AWS's superior operating margin. Because Amazon can earn a far greater profit per dollar of revenue in AWS, it tilts the scales in favor of this business segment. Amazon knows this, which is why the company is focusing all of its available capital expenditure dollars into building out infrastructure so AWS can continue to grow at its rapid 37% pace. Management also noted that the company is in a compute-constrained state, and AWS won't have enough capacity to meet demand in 2026, and the same will likely be true in 2027.
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With Amazon's most profitable business segment growing at the fastest pace, it creates a perfect catalyst for Amazon's stock to rise dramatically over the next few years. All of Amazon's huge data center spending will start to really pay off, and it's possible that its AWS revenue growth rate will accelerate, too.
Due to AWS's superior operating margin, Amazon's companywide profits will grow faster than revenue, which is music to investors' ears. This effect can produce market-crushing stocks, and I think that's exactly what Amazon will be over the next five years.
There are few companies with a setup like Amazon's, with its rising growth rate and improving operating margins. I think that makes Amazon a top stock to buy right now, and definitely at the top of the list of the best artificial intelligence stocks to buy during the remainder of 2026.
Billionaire Peter Thiel's hedge fund, Thiel Macro, disclosed its latest portfolio in a regulatory filing last month, and the fund's largest reported position (a stake worth about $118 million as of June 30) is e-commerce and cloud computing giant Amazon (AMZN -0.15%).
But I'd argue the filing itself is less notable than the track record behind its biggest pick. In early September 2016, Amazon shares closed at a split-adjusted $39.44 (the company split its stock 20-for-1 in 2022). At Friday's closing price of $258.51, a $10,000 investment made a decade ago is worth about $66,000 today -- a return of about 555%, or nearly 21% annualized.
And that's price appreciation alone. Amazon doesn't pay a dividend.
What produced that return, and could the company possibly do it again?
Image source: Amazon.
The profits grew even faster than the stockThe Amazon of 2016 was a very different company. That year, it generated $136 billion of revenue, $4.2 billion of operating income, and just $2.4 billion of net income. Investors were paying more than 100 times earnings for a business that was barely profitable.
By 2025, revenue had more than quintupled to about $717 billion. Net income grew about 32-fold over the same period, reaching $77.7 billion. In other words, Amazon's bottom line compounded far faster than its share price did.
That gap explains a lot. The stock's big decade didn't come from investors paying a higher premium for Amazon's earnings. Shares cost about 24 times next year's expected earnings today, a fraction of what buyers were paying in 2016. The business simply outgrew its price.
The profit engineMost of the transformation traces to Amazon Web Services (AWS), the company's cloud computing segment. In 2016, AWS generated $12.2 billion of revenue (about 9% of Amazon's total), yet its $3.1 billion of operating income accounted for most of the company's overall operating profit. By 2025, the segment's revenue had grown more than tenfold to $128.7 billion, and its operating income reached $45.6 billion.
Notably, the segment became more profitable as it scaled, with its operating margin expanding from about 25% to about 35% over the decade.
And AWS's growth is speeding up, not slowing down. Segment revenue rose 20% in 2025, with growth picking up as the year went on and reaching 24% year over year in the fourth quarter.
"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 when the company reported second-quarter results in July.
In dollar terms, that was $42.2 billion of AWS revenue in the second quarter alone -- an annualized pace of about $169 billion.
The cloud isn't Amazon's only newer profit stream, either. The company's advertising business, which Amazon didn't even report as its own revenue line a decade ago, generated $19.8 billion of revenue in the second quarter, up 26% year over year. That's faster growth than the overall company posted, and an annual pace approaching $80 billion.
Can the next 10 years measure up?A repeat of the past decade is a high bar. Another 555% gain would take Amazon's market value from about $2.8 trillion today to roughly $18 trillion. That's far more than any public company is worth today. I wouldn't plan on that.
However, the stock doesn't need a repeat to reward shareholders. It needs profits to keep compounding.
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And Amazon is spending aggressively to make sure they do. In fact, the investment is heavy enough that free cash flow over the trailing 12 months swung to an outflow of about $7.6 billion, largely reflecting spending on artificial intelligence (AI) infrastructure.
Of course, an outflow like that may look alarming, and the spending could weigh on profit margins for a while. But heavy investment ahead of the payoff is also how AWS got built in the first place.
Would I buy Amazon stock today?
I would, though not because Thiel's fund owns it. A quarterly filing shows where a fund stood weeks ago, not what anyone should buy today. The better reason is the business itself: It arguably looks stronger than it did a decade ago, and a price of about 24 times next year's expected earnings seems reasonable for a company still growing this quickly.
I just wouldn't buy shares expecting a repeat of the past 10 years. If the profits keep compounding, the stock should do fine.
One contractor-operated aircraft represents limited capacity, but the crash creates a major safety and oversight test. Summary
Federal investigators are examining a runway overrun that killed at least five people.
Amazon.com AMZN, the e-commerce, logistics and cloud-computing giant, faced a federal investigation after a contractor-operated Prime Air Boeing 767 overran a Miami runway Sunday. Reuters reported that the aircraft struck ground vehicles, leaving at least five people dead and five injured. Investigators have not determined the cause.
The National Transportation Safety Board is leading the inquiry. The disruption rippled quickly through Miami International Airport, with the Associated Press reporting more than 160 canceled flights and nearly 325 delays. Amazon operates an air network of more than 100 partner-flown aircraft handling over 250 flights daily, so the company has substantial capacity to absorb the temporary loss of a single plane.
Amazon shares were quoted at $258.51, standing 4.32% above the GF Value estimate of $247.80. That modest premium suggests investors are not pricing in a major financial shock from one aircraft, which represents less than 0.4% of the network's daily flight schedule. The real risk is broader: if investigators uncover weaknesses in contractor oversight, maintenance or operating controls, Amazon could face tighter requirements across a logistics system carrying its merchandise and reputation.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Amazon (AMZN -0.15%) trades at just above $255 as of the time of this writing. Despite its strengths in e-commerce, cloud computing, and now artificial intelligence, its stock has gained little traction this year.
This situation may leave investors wondering what's wrong with Amazon stock. Has it just paused before resuming its upward move, or is it a stock investors should hold or avoid?
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Before answering that question, investors should ponder both the potential and the costs of its AI expansion. Although the company is in a strong position to lead in AI, capturing that business has come at an enormous cost.
Amazon forecast $220 billion in capital expenditures (capex) for this year, up from $132 billion in 2025. As a result, the company has borrowed tens of billions of dollars despite its $123 billion in liquidity. Also, it has reported a negative free cash flow of $7.6 billion over the trailing 12 months, a dramatic drop from the tens of billions in yearly free cash flow generated in the past.
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Nonetheless, Amazon continues to drive growth from its e-commerce segments. Also, the aforementioned liquidity and cash-generating ability should help it survive even if the worst fears of an AI bust materialize.
That spending has likely accelerated Amazon's revenue growth. Yearly net sales growth was 20% in the second quarter of 2026, up from 13% one year ago. That includes the cloud computing business Amazon Web Services, whose annual growth rate surged from 17.5% to 37% over the same period. Furthermore, its P/E ratio has fallen to 21, a low level considering how the stock thrived in previous years when it typically sold for above 50 times earnings.
Indeed, the consumer discretionary stock could struggle for a time if the AI spending becomes untenable or difficult to justify. However, with its strong financial position and leadership in e-commerce and the cloud, Amazon is likely a long-term buy at $255 per share.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
The Amazon cargo jet that crashed at Miami International Airport on Sunday overran the runway by about 1,300 feet, crashing into vehicles both inside and outside the airport boundary and killing multiple people, a federal official said Monday.
The accident killed at least five people and injured at least five others.
The scene of the accident is "utter devastation," Jennifer Homendy, chair of the National Transportation Safety Board, said during a press briefing Monday.
"There's debris everywhere," she said.
Homendy didn't offer details on the cause of the crash.
Investigators, who will be on site for at least a week, "will not be determining probable cause while we are on the scene," Homendy said.
Investigators recovered the flight data recorder and the cockpit voice recorder, which will arrive at NTSB headquarters later Monday for evaluation, she said.
Investigators hope to be able to release additional information abut the crash on Tuesday, she said.
The plane, which was being operated for Amazon by 21 Air LLC, overran the runway around 2 p.m. Sunday. The flight was arriving from San Juan, Puerto Rico, and was the third flight for the aircraft that day.
The aircraft struck a 2021 white Ford Econoline van owned by Professional Ocean Service Corp., a contract cleaning company for the airlines, which had seven people on board, Homendy said. It then busted through a perimeter fence, hitting a passenger vehicle — a Toyota Corolla Cross — outside the airport. The fatalities were all from those two vehicles, the NTSB said.
The plane slid through another fence that separated an area where Tesla robotaxis were stationed before stopping, Homendy said.
She said that investigators would look into the nature of the relationship between Amazon and 21 Air.
"This is an Amazon operation for transporting cargo, but it's actually contracted to 21 Air," Homendy said. "We're going to want to see what that relationship is, who does what, what safety provisions might be in any sort of contracts or any sort of policies."
Two of the four runways at Miami International Airport remain closed after the incident, according to a notification on the airport website.
The accident snarled air travel to and through the airport during a busy holiday travel weekend. More than 160 flights were canceled and nearly 325 delayed by late Sunday, according to FlightAware data cited by the Associated Press.
Travel delays continued into Monday.
"Cancellations continue due to aircraft and flight crews not having arrived," the airport website said. "Passengers with flights scheduled today should check directly with their airline for flight updates before heading to the airport."
The airport is the busiest U.S. airport for international freight, according to its website.
Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Has Amazon (AMZN - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
Amazon is a member of the Retail-Wholesale sector. This group includes 190 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Amazon is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AMZN's full-year earnings has moved 4.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that AMZN has returned about 12% since the start of the calendar year. In comparison, Retail-Wholesale companies have returned an average of 0.9%. This means that Amazon is outperforming the sector as a whole this year.
One other Retail-Wholesale stock that has outperformed the sector so far this year is BJ's Restaurants (BJRI - Free Report) . The stock is up 52% year-to-date.
Over the past three months, BJ's Restaurants' consensus EPS estimate for the current year has increased 7.3%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Amazon belongs to the Internet - Commerce industry, a group that includes 35 individual stocks and currently sits at #95 in the Zacks Industry Rank. Stocks in this group have gained about 4.4% so far this year, so AMZN is performing better this group in terms of year-to-date returns.
On the other hand, BJ's Restaurants belongs to the Retail - Restaurants industry. This 36-stock industry is currently ranked #93. The industry has moved -4.9% year to date.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Amazon and BJ's Restaurants as they could maintain their solid performance.
The satellite race everyone is watching plays out on launchpads, but the contest that determines who profits runs through a far less visible battlefield: the radio frequencies fighting to reach the phone in your pocket.
Wall Street loves a rocket, but the real satellite race is being fought in radio waves. As of September 2026, the FCC has authorized Supplemental Coverage from Space, unlocking a new category where orbital constellations beam service directly into ordinary handsets. Four public names now define the competitive map, and one downstream beneficiary sits at the center of it. Rankings below reflect exposure to the spectrum-plus-partnership advantage that will decide who owns the connection between orbit and the phone in your pocket.
1. AST SpaceMobile (ASTS): Pure-Play Leader on Handset Compatibility AST SpaceMobile (NASDAQ:ASTS) is the only company built solely to connect unmodified smartphones to satellites. Management has assembled over 60 MNO partners covering more than 3 billion subscribers, is on a path to roughly 100 MHz of U.S. spectrum, and can tune 1,150 MHz across low and mid-band frequencies. Q2 2026 revenue was $31.52 million, up 2,626.6% year over year, with FY26 guidance reaffirmed at $150M to $200M and backlog of $1.30 billion. CEO Abel Avellan stated, “Spectrum is like fuel for our business.” Shares are up 48.85% over the past year despite a 14.21% year-to-date pullback. Beta service is targeted for later this year. No competitor matches the depth of MNO integration.
2. SpaceX (SPCX): Incumbent With a Landmark Spectrum Grab SpaceX (NASDAQ:SPCX | SPCX Price Prediction) secured FCC approval of the EchoStar license transfer, delivering 65 MHz of U.S. spectrum plus global Mobile Satellite Service licenses. Management called it “a foundational competitive advantage for Starlink Mobile” and plans to integrate the spectrum after launching Mobile V2 satellites later next year. Q2 revenue reached $7.81 billion, up 92%, with connectivity contributing $4.29 billion and Starlink subscribers doubling to 12.0 million. New Starlink Mobile relationships with SoftBank, NTT Docomo, and Spark New Zealand extend the carrier footprint. Cash of $93.52 billion and backlog of $47.50 billion give SpaceX unmatched firepower to build the terrestrial layer needed to activate the EchoStar bands.
3. Rocket Lab (RKLB): Vertical Integration Through Iridium Rocket Lab (NASDAQ:RKLB) is transforming from launch provider to full-stack space power. The pending Iridium acquisition adds 66 satellites, 2.5 million subscribers, and more than $870 million in annual revenue. Peter Beck emphasized the strategic value of L-band spectrum: “rain- and weather-penetrating, indoor-penetrating spectrum, because not all spectrum is the same.” Q2 revenue rose 62% to $234.07 million, backlog climbed 137% to $2.36 billion, and the company holds $2.13 billion in cash. Iridium’s L-band is not standard-phone compatible today, so RKLB targets safety-critical, IoT, aviation, maritime, and PNT use cases. Shares are up 49.48% over the past year. Neutron execution and mid-2027 deal close remain the swing factors.
4. Amazon (AMZN): Leo Constellation Enters Service Year Amazon (NASDAQ:AMZN) is the D2D challenger with the deepest balance sheet. Amazon Leo now has close to 400 satellites in orbit, enough to begin initial satellite internet service this year, alongside more than 20 partners extending global reach. The network is already powering satellite services for Apple iPhone and Apple Watch, with a Delta Air Lines rollout beginning 2028 and a Vodafone extension across Europe and Africa. AWS revenue grew 37% to $42.23 billion, funding capex of $54.21 billion in a single quarter. Shares are up 12% year-to-date.
5. Apple (AAPL): Downstream Beneficiary and Kingmaker Apple (NASDAQ:AAPL) is the demand side of every spectrum bet on this list. Its handsets and wearables are already the confirmed anchor for Amazon Leo’s iPhone and Apple Watch satellite services, and any AST SpaceMobile or SpaceX consumer service will run through iOS as much as Android. Apple’s decision on which D2D partners to certify at the operating-system and modem level will shape subscriber economics for every network in the race.
Cross-Company Themes and Uncertainties The common thread is regulatory. Spectrum grants, license transfers, and MNO joint ventures now matter more than launch cadence. ASTS offers the purest near-term consumer D2D leverage, SpaceX brings capital and the largest new spectrum block, Rocket Lab plays a differentiated L-band hand, and Amazon leans on distribution scale. Key uncertainties include beta-to-commercial conversion for ASTS, EchoStar terrestrial buildout costs for SpaceX, Iridium deal close for Rocket Lab, and Amazon Leo service ramp timing. Investors watching this sector should track FCC actions and carrier certifications as closely as launch manifests.
Contact [email protected] for any questions or corrections.
The US National Transportation Safety Board will hold a media briefing at 4 p.m. EDT (2000 GMT) on Monday to share its latest updates about Sunday's deadly Amazon Prime Air cargo plane crash at Miami International Airport, the agency said in a post on X.
Greenwood Gearhart LLC boosted its position in Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 2.6% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 131,218 shares of the e-commerce giant’s stock after buying an additional 3,266 shares during the period. Amazon.com makes up 1.5% of Greenwood Gearhart LLC’s holdings, making the stock its 21st biggest holding. Greenwood Gearhart LLC’s holdings in Amazon.com were worth $31,274,000 at the end of the most recent quarter.
A number of other institutional investors have also bought and sold shares of AMZN. Flynn Zito Capital Management LLC grew its holdings in Amazon.com by 1.5% during the 2nd quarter. Flynn Zito Capital Management LLC now owns 18,015 shares of the e-commerce giant’s stock worth $4,294,000 after acquiring an additional 263 shares during the period. Opus Financial Solutions LLC raised its position in shares of Amazon.com by 23.1% in the 2nd quarter. Opus Financial Solutions LLC now owns 7,551 shares of the e-commerce giant’s stock worth $1,800,000 after acquiring an additional 1,415 shares in the last quarter. MBM Wealth Consultants LLC lifted its stake in shares of Amazon.com by 7.3% in the 2nd quarter. MBM Wealth Consultants LLC now owns 13,291 shares of the e-commerce giant’s stock valued at $3,168,000 after purchasing an additional 908 shares during the period. Freedom Day Solutions LLC lifted its stake in shares of Amazon.com by 4.5% in the 2nd quarter. Freedom Day Solutions LLC now owns 25,338 shares of the e-commerce giant’s stock valued at $6,039,000 after purchasing an additional 1,090 shares during the period. Finally, Fischer Investment Strategies LLC bought a new stake in shares of Amazon.com during the 2nd quarter valued at about $472,000. Institutional investors own 72.20% of the company’s stock.
Wall Street Analyst Weigh In AMZN has been the subject of several recent analyst reports. Roth Capital reaffirmed a “buy” rating and set a $325.00 target price on shares of Amazon.com in a research note on Monday, August 3rd. Raymond James Financial restated an “outperform” rating and set a $390.00 price target (up from $280.00) on shares of Amazon.com in a report on Friday, July 31st. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $320.00 price objective (down from $330.00) on shares of Amazon.com in a research report on Friday, July 31st. Citizens Jmp reiterated a “market outperform” rating and issued a $315.00 price objective on shares of Amazon.com in a research note on Friday, July 31st. Finally, Sanford C. Bernstein reiterated an “outperform” rating and set a $320.00 target price (up from $315.00) 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 assigned a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $323.26.
Check Out Our Latest Stock Report on AMZN Insider Activity In other news, CEO Douglas J. Herrington sold 6,362 shares of the business’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $1,647,821.62. Following the completion of the sale, the chief executive officer directly owned 476,681 shares of the company’s stock, valued at $123,465,145.81. The trade was a 1.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Garman sold 14,541 shares of the company’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.06, for a total transaction of $3,766,991.46. Following the completion of the sale, the chief executive officer owned 17,794 shares in the company, valued at $4,609,713.64. This represents a 44.97% 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. In the last 90 days, insiders have sold 71,589 shares of company stock valued at $18,568,785. 8.90% of the stock is currently owned by insiders.
Amazon.com News Roundup Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AI and AWS remain the key growth drivers. Recent coverage highlights accelerating AWS growth, Amazon’s planned purchase of roughly 2 million Nvidia GPUs and approximately $200 billion in 2026 AI-infrastructure investment. These initiatives could support cloud revenue, advertising and future operating leverage, although they require substantial near-term capital spending. Amazon and Nvidia AI infrastructure article Positive Sentiment: Amazon is expanding its strategic infrastructure and logistics footprint. A multiyear, multibillion-dollar Corning agreement will provide optical-fiber and connectivity products for data centers, while Amazon expects its own delivery network to handle nearly 90% of U.S. packages by 2029. Both developments could improve capacity, efficiency and control over fulfillment costs. Amazon Corning fiber agreement Positive Sentiment: Zoox reached another commercialization milestone. Amazon’s autonomous-vehicle unit expanded paid robotaxi service to Las Vegas’ Harry Reid International Airport, broadening a potential future growth platform beyond e-commerce and cloud computing. Zoox Las Vegas airport expansion Neutral Sentiment: High spending is creating both opportunity and valuation risk. Analysts continue to identify AMZN as a leading AI and cloud beneficiary, but elevated data-center investment has pushed Amazon’s trailing free cash flow negative. Investors are assessing whether current spending will generate returns comparable to the company’s earlier AWS buildout. Amazon capital spending and higher rates article Negative Sentiment: DOJ scrutiny is the most immediate overhang. The Justice Department expanded its beef-price investigation to eight retailers, including Amazon, seeking pricing data as it examines possible anticompetitive conduct in the meat supply chain. The inquiry does not establish wrongdoing, but it raises regulatory and potential litigation risk. DOJ beef price probe Negative Sentiment: Labor concerns and insider selling add pressure. Workers at Amazon’s Riverside, California warehouse held a one-day strike over alleged retaliation and union-recognition issues. CEO Douglas Herrington separately sold 1,000 shares under a prearranged Rule 10b5-1 plan; the sale was small relative to his remaining holdings but may draw limited investor attention. Amazon.com Price Performance Shares of NASDAQ:AMZN opened at $258.51 on Monday. 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’s 50 day moving average is $254.14 and its 200-day moving average is $242.64. The firm has a market capitalization of $2.79 trillion, a price-to-earnings ratio of 20.80, a PEG ratio of 1.99 and a beta of 1.44.
Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The company had revenue of $200.61 billion for the quarter, compared to analysts’ expectations of $197.03 billion. During the same period last year, the business earned $1.68 EPS. Amazon.com’s quarterly revenue was up 19.6% compared to the same quarter last year. Sell-side analysts forecast that Amazon.com, Inc. will post 8.05 EPS 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.
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Bartlett & CO. Wealth Management LLC lifted its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 0.7% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 936,125 shares of the e-commerce giant’s stock after purchasing an additional 6,245 shares during the quarter. Amazon.com comprises about 2.8% of Bartlett & CO. Wealth Management LLC’s investment portfolio, making the stock its 7th largest holding. Bartlett & CO. Wealth Management LLC’s holdings in Amazon.com were worth $223,116,000 as of its most recent filing with the Securities & Exchange Commission.
Other institutional investors have also bought and sold shares of the company. Brighton Jones LLC lifted its stake in shares of 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 worth $885,478,000 after acquiring an additional 397,007 shares during the period. Revolve Wealth Partners LLC raised its holdings in Amazon.com by 4.1% during the fourth 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 raised its holdings in Amazon.com by 2.8% during the fourth 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 lifted its position in Amazon.com by 5.5% in the fourth quarter. Highview Capital Management LLC DE now owns 28,975 shares of the e-commerce giant’s stock worth $6,357,000 after purchasing an additional 1,518 shares during the period. Finally, Liberty Square Wealth Partners LLC acquired a new stake in Amazon.com in the fourth quarter worth approximately $2,153,000. Institutional investors and hedge funds own 72.20% of the company’s stock.
Key Headlines Impacting Amazon.com Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AI and AWS remain the key growth drivers. Recent coverage highlights accelerating AWS growth, Amazon’s planned purchase of roughly 2 million Nvidia GPUs and approximately $200 billion in 2026 AI-infrastructure investment. These initiatives could support cloud revenue, advertising and future operating leverage, although they require substantial near-term capital spending. Amazon and Nvidia AI infrastructure article Positive Sentiment: Amazon is expanding its strategic infrastructure and logistics footprint. A multiyear, multibillion-dollar Corning agreement will provide optical-fiber and connectivity products for data centers, while Amazon expects its own delivery network to handle nearly 90% of U.S. packages by 2029. Both developments could improve capacity, efficiency and control over fulfillment costs. Amazon Corning fiber agreement Positive Sentiment: Zoox reached another commercialization milestone. Amazon’s autonomous-vehicle unit expanded paid robotaxi service to Las Vegas’ Harry Reid International Airport, broadening a potential future growth platform beyond e-commerce and cloud computing. Zoox Las Vegas airport expansion Neutral Sentiment: High spending is creating both opportunity and valuation risk. Analysts continue to identify AMZN as a leading AI and cloud beneficiary, but elevated data-center investment has pushed Amazon’s trailing free cash flow negative. Investors are assessing whether current spending will generate returns comparable to the company’s earlier AWS buildout. Amazon capital spending and higher rates article Negative Sentiment: DOJ scrutiny is the most immediate overhang. The Justice Department expanded its beef-price investigation to eight retailers, including Amazon, seeking pricing data as it examines possible anticompetitive conduct in the meat supply chain. The inquiry does not establish wrongdoing, but it raises regulatory and potential litigation risk. DOJ beef price probe Negative Sentiment: Labor concerns and insider selling add pressure. Workers at Amazon’s Riverside, California warehouse held a one-day strike over alleged retaliation and union-recognition issues. CEO Douglas Herrington separately sold 1,000 shares under a prearranged Rule 10b5-1 plan; the sale was small relative to his remaining holdings but may draw limited investor attention. Insiders Place Their Bets In other news, CEO Matthew Garman sold 14,541 shares of the company’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.06, for a total value of $3,766,991.46. Following the transaction, the chief executive officer owned 17,794 shares in the company, valued at $4,609,713.64. This represents a 44.97% 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 Andrew R. Jassy sold 20,000 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the completion of the sale, the chief executive officer directly owned 2,235,766 shares of the company’s stock, valued at $579,085,751.66. This trade represents a 0.89% 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 have sold a total of 71,589 shares of company stock valued at $18,568,785 over the last quarter. 8.90% of the stock is owned by insiders. Wall Street Analyst Weigh In Several equities analysts have recently issued reports on AMZN shares. Monness Crespi & Hardt lifted their price target on Amazon.com from $315.00 to $330.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Phillip Securities cut Amazon.com from a “strong-buy” rating to a “moderate buy” rating in a research note on Monday, August 3rd. Weiss Ratings reiterated a “buy (b)” rating on shares of Amazon.com in a research report on Monday, August 3rd. Oppenheimer restated an “outperform” rating on shares of Amazon.com in a research report on Friday, July 31st. Finally, KeyCorp lifted 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. One analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $323.26.
Read Our Latest Stock Analysis on Amazon.com
Amazon.com Price Performance AMZN stock opened at $258.51 on Monday. 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, Inc. has a one year low of $196.00 and a one year high of $287.20. The firm has a market capitalization of $2.79 trillion, a PE ratio of 20.80, a P/E/G ratio of 1.99 and a beta of 1.44. The firm has a 50-day moving average of $254.14 and a two-hundred day moving average of $242.64.
Amazon.com (NASDAQ:AMZN – Get Free Report) last released its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, topping the consensus estimate of $1.82 by $3.93. The business had revenue of $200.61 billion for the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The firm’s quarterly revenue was up 19.6% compared to the same quarter last year. During the same period last year, the firm posted $1.68 earnings per share. On average, analysts forecast that Amazon.com, Inc. will post 8.05 earnings per share for the current year.
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.
Read More Five stocks we like better than Amazon.com AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains Want to see what other hedge funds are holding AMZN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Amazon.com, Inc. (NASDAQ:AMZN – Free Report).
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Amazon (AMZN) is facing a major operational incident after a Prime Air cargo aircraft crashed after landing at Miami International Airport on Sunday, killing at
Amazon.com Inc. (AMZN, Financials) has been constructing a delivery network for years that allows it more control over how shipments arrive at customers. Now po
An Amazon cargo plane crashed near a parking lot full of Tesla Cybercabs. CHANDAN KHANNA / AFP via Getty Images Sunday's Amazon plane crash almost destroyed a bunch of Elon Musk's latest invention.
At least five people died, and five more were injured, after the Amazon Prime Air Boeing 767 overshot the runway at Miami International Airport.
Images showed the airplane came to a halt next to a parking lot that appeared to contain a few dozen Tesla Cybercabs.
The gold-colored robotaxis have no steering wheel or pedals, and feature distinctive gold wheel hubs. Tesla officially launched the cabs in Austin last week to great fanfare.
The launch has prompted an inquiry from the National Highway Traffic Safety Administration to check that Tesla has followed all the rules.
Air India crash kills at least 200 people, marking the first fatal Boeing 787 plane accident
On Sunday, when the Boeing 767 passed the end of the runway in Miami, it appeared to strike multiple vehicles but stopped short of the parking lot full of Cybercabs.
Tesla has not officially confirmed that it is testing or planning to roll out Cybercabs in Miami, but its robotaxis, which use modified Tesla Model Ys, have been available in the city since July. Teslarati, a Tesla blog, shared a photo of about 40 Cybercabs at Miami Airport three days before the crash.
Tesla did not immediately respond to a request for comment from Business Insider, though Musk wrote "Weird" on X in response to a post from financial blog Zero Hedge about the presence of Cybercabs.
According to Miami-Dade Fire Rescue radio transmissions recorded on Broadcastify, the plane crossed 67th Avenue, a nearby road, before it struck a truck.
"We have a patient trapped," a first responder said, according to the recordings.
The airplane was operated by 21 Air, a charter firm, and had flown to Miami from Puerto Rico.
Weather data shows there were thunderstorms and gusting winds at the time of the crash.
It was not immediately clear on Sunday how many people were on the plane, and whether those killed were people on the ground.
This was the second 767 cargo plane to crash from Amazon's Prime Air network. In 2019, an Atlas Air freighter flying on behalf of Amazon crashed into Trinity Bay near Houston, killing the three people on board.
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Pete Syme You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Pete Syme is an aviation reporter for Business Insider, based in London.He writes about all things related to the industry, from aviation safety and CEO interviews to route reveals and airplane tours. Pete also uses data for industry analyses and to visualize breaking news events.Before joining Business Insider in 2022, he graduated with an MA in Newspaper Journalism from City, University of London, and a BA in English from the University of Exeter.
Amazon (AMZN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this online retailer have returned -5.8% over the past month versus the Zacks S&P 500 composite's -0.1% change. The Zacks Internet - Commerce industry, to which Amazon belongs, has lost 6.6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Amazon is expected to post earnings of $2.03 per share for the current quarter, representing a year-over-year change of +4.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $13.06 for the current fiscal year indicates a year-over-year change of +82.2%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $10.58 indicates a change of -19% from what Amazon is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Amazon is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Amazon, the consensus sales estimate for the current quarter of $201.93 billion indicates a year-over-year change of +12.1%. For the current and next fiscal years, $829.39 billion and $949.19 billion estimates indicate +15.7% and +14.4% changes, respectively.
Last Reported Results and Surprise HistoryAmazon reported revenues of $200.61 billion in the last reported quarter, representing a year-over-year change of +19.6%. EPS of $1.88 for the same period compares with $1.68 a year ago.
Compared to the Zacks Consensus Estimate of $197.11 billion, the reported revenues represent a surprise of +1.77%. The EPS surprise was +2.73%.
Over the last four quarters, Amazon surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Amazon is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Amazon. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
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An Amazon Prime plane overshot the runway at Miami International Airport and crashed on Sunday. Marco Bello/REUTERS An Amazon Prime Air cargo plane overshot the runway at Miami International Airport on Sunday before striking multiple vehicles and erupting into a blaze, officials said.
Videos from the scene showed a fire and thick black smoke rising from the plane. Miami-Dade Fire Rescue said that firefighters were "working on extinguishing the fire and assessing patients."
An Amazon spokesperson said that "an Amazon Air plane operated by 21 Air experienced an incident while attempting to land at Miami International Airport today."
"This is a fast-moving situation and we're still gathering details," the spokesperson, Kelly Nantel, said in an X post. "We're working closely with local authorities and officials to understand exactly what happened."
The plane took off from Puerto Rico at noon and reached Miami around 2 p.m., according to data from Flight Aware, a plane tracking service.
Transportation Secretary Sean Duffy said on X that a full ground stop was in place "while first responders assess the scene." The plane was left disabled at the northwest end of the airport.
According to Miami-Dade Fire Rescue radio transmissions recorded on Broadcastify, the plane struck a truck.
"We have a patient trapped," a first responder said, according to the recordings.
This is a developing story and will be updated.
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Truman Dickerson You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Truman Dickerson is the Weekend News Fellow at Business Insider, based in New York City. He covers trending tech and business news. He previously reported for The Boston Globe's Express Desk. He graduated from Boston University, where he served as editor in chief of The Daily Free Press, BU's student-run newspaper.Contact him at [email protected]
Lauren Edmonds You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Lauren Edmonds is an award-winning reporter on the Business News team. When news isn't breaking, she covers personal finance, kitchen-table economics, and paths to financial freedom, including investing, real estate, side hustles, and small business. She also writes about guaranteed and universal basic income programs in the United States.Lauren has also covered lifestyle and entertainment, digital culture, and more. She has a master's degree from the Columbia University Graduate School of Journalism and resides in New York City.Do you have an interesting story to tell? You can reach Lauren at [email protected] or on Signal at ledmonds0.07.Popular StoriesNetflix wants to be Disney when it grows up Why Hollywood is paying this 17-year-old up to $20,000 to boost film trailers with TikTok editsHere's all the free money Trump's talked about giving Americans during his second term — and where it all standsA 17-year-old earned $72,000 after investing his e-commerce profits into stocks. Here's why he bet on the tech industry.Lawmakers float a nationwide basic income experiment that would cover the cost of a 2-bedroom apartmentNearly 30,000 Americans have received about $335 million in basic income. Here are 5 takeaways. Americans ditch suffocating healthcare costs and divisive politics to retire in Italy: 'It's the way they approach life'From 'road-schooling' to gas that costs $500, this family of 4 shares what it's like living in a solar-powered Greyhound bus
Boring investing strategies aren't always bad. While some people look for hidden opportunities that no one is considering, the best investments may be hidden in plain sight.
That's why my boring prediction is that AI stocks will continue to rally. These stocks aren't exactly the greatest-kept secrets. Nvidia (NVDA +0.84%) has grown into the world's most valuable publicly traded company in recent years. More investors are also looking toward smaller AI stocks instead of just relying on chipmakers, which is the same approach I have used for my portfolio.
It may be boring to hear yet another person advocate for AI stocks, but the technology's evolution and upcoming catalysts suggest that this approach is still solid.
Image source: Getty Images.
Nvidia and Broadcom offered multiyear forecasts AI investors should carefully monitor Nvidia and Broadcom (AVGO +0.21%) when assessing how far the AI rally can go. This has been true for years. While I have been bullish about AI stocks for years, their recent results have increased my resolve.
Broadcom reported 86% year-over-year revenue growth in its fiscal 2026 third quarter. Revenue for its AI semiconductor segment was up by 221% and made up more than half of total sales.
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However, the bigger news came in the chipmaker's earnings call. Broadcom told investors that it expects its AI chip revenue to double to $115 billion in its fiscal 2027, and then to double yet again to $230 billion in its fiscal 2028.
It's rare for a company to give revenue guidance two years in advance, and this outlook points to continued parabolic growth. It's not just Broadcom. Nvidia said it anticipates 70% year-over-year revenue growth in its fiscal 2028, and cited supply chain issues as a factor limiting growth to that level. If the shortages of components are less of an issue than expected, Nvidia anticipates a level of demand that would result in a higher growth rate.
Hyperscalers are reaping massive rewards for their AI investments The money that is going toward AI data centers is producing tangible growth for the largest developers of that infrastructure. Hyperscalers like Amazon (AMZN -0.15%), Microsoft (MSFT -2.04%), and Alphabet (GOOG -1.05%) (GOOGL -1.11%) have produced tremendous results from their respective cloud platforms.
Amazon Web Services' growth has reignited, and it just had its best quarter in more than four years. Microsoft is sitting on a $678 billion backlog for its Azure cloud platform, and Google Cloud delivered 82% year-over-year revenue growth in the second quarter.
When announcing Alphabet's first quarter results, CEO Sundar Pichai told investors that the company's "AI investments and full stack approach are lighting up every part of the business."
That quote truly captures the returns AI investments have produced for the leading tech companies. It suggests that hyperscalers will continue to ramp up their capital investments, and Nvidia's and Broadcom's multiyear guidance supports that thesis.
It's not just chipmakers and hyperscalers I believe that to find the most exciting AI investment opportunities requires investors to look beyond chipmakers and hyperscalers. Their earnings reports offer a good idea of where the AI industry is heading. If chips continue to fly off the shelves and cloud backlogs continue to grow, AI spending and demand will continue to climb.
However, that's not where I'm looking for investment opportunities. I prefer to find smaller companies that are responsible for different parts of AI infrastructure. For instance, each GPU requires memory chips. All of those chips also have to go inside data centers that have the necessary power, liquid cooling, and other components.
The deeper you go down this rabbit hole, the higher the returns you can potentially find. Neoclouds like Nebius (NBIS +7.48%) and Iren (IREN +7.28%) have my attention since they provide necessary compute capacity and power to hyperscalers.
Investors will continue to hear that artificial intelligence presents some of the best opportunities right now. It may sound boring since it has been the main headline on Wall Street for multiple years, but sometimes, the best opportunities are the most obvious ones.
Amazon (AMZN -0.15%) is the world leader in cloud infrastructure services that are facilitating the artificial intelligence revolution. It's also the world leader in e-commerce. And it's the largest company in the world by measure of revenue, having generated more than $716 billion in sales last year.
Despite its many strengths, Amazon stock has been something of a laggard over the last five years. It's up roughly 47% over the last half-decade. The only "Magnificent Seven" stock with a lower return is Tesla, coming in with a gain of 46% across the stretch.
Meanwhile, the S&P 500 is actually up 69% over the same time period, and the Nasdaq Composite is up 71%. But while Amazon stock has underperformed the broader market in recent years, I think the company has a good chance of joining Nvidia, Apple, and Alphabet on the list of companies with a market cap of at least $4 trillion before 2029. Here's why.
Image source: Getty Images.
Amazon is positioned to serve up wins Amazon has a market capitalization of roughly $2.75 trillion and currently ranks as the world's fifth-largest company. In order to hit a market cap of $4 trillion based on its current share count, the stock would need to increase roughly 45.5%. Over the next two years, that would mean delivering average annual growth of 20.6%.
Despite its forefront position in the artificial intelligence space, Amazon still appears to be underappreciated as an AI stock -- and it's not as if the company hasn't been posting strong results. The tech giant's Amazon Web Services (AWS) cloud infrastructure segment grew sales 37% year over year to reach $42.2 billion in the second quarter, with AI-related demand helping the unit record its strongest growth rate since 2021. For reference, the average analyst estimate had called for annual growth of roughly 31% and sales of $40.54 billion in the quarter.
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Meanwhile, revenue for the company's e-commerce-heavy North America segment saw revenue increase 16% year over year, and total company revenue was up 20% to $200.6 billion in the quarter. Amazon's sales growth is accelerating again, and there are good reasons to think that the business is still in the relatively early stages of benefiting from AI-related tailwinds.
The company's heavy focus on e-commerce means that its overall margins tend to be significantly lower than most of the Magnificent Seven, but its massive online retail sales base is a strength that still has substantial room for optimization. With ongoing advancements for automation and robotics, Amazon should be able to harness efficiency improvements that unlock stronger margins for its e-commerce business. Along with continued growth for its digital ads unit, Amazon's business engines have never looked stronger, and give the company the foundation to hit a $4 trillion market cap by 2029.
Of course, this projection assumes that the overall market remains relatively healthy. If macroeconomic conditions worsen and valuations across the broader market come down significantly, it's reasonable to expect that Amazon's valuation will face pressure even if business results continue to look strong.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The hottest IPO of the year hasn't even been formally announced yet (sorry, Space Exploration Technologies).
It's the impending IPO of artificial intelligence (AI) company Anthropic, which makes the Claude large language model (LLM), along with its coding counterpart, Claude Code, and numerous other AI agents and models.
Anthropic submitted a confidential draft S-1 prospectus registration with the Securities and Exchange Commission (SEC) in June, but rumors are swirling that the IPO could come as early as next month.
That means individual investors can't buy shares of Anthropic just yet. However, there's another way for investors to own a piece of Anthropic before its IPO. They just need to buy stock in a public company that owns a stake in Anthropic.
Here are two magnificent stocks that already own a large chunk of Anthropic, which should benefit their shareholders.
Image source: Getty Images.
Amazon's big bet Many tech companies, including Microsoft and Nvidia, have taken stakes in Anthropic. Perhaps the biggest potential winner from its Anthropic investment is tech giant Amazon (AMZN -0.15%).
Amazon is much more than an e-commerce company. In fact, its fastest-growing business segment is its Amazon Web Services (AWS) cloud computing arm, which saw 37% revenue growth in the most recent quarter, thanks to customers spending money on AI applications.
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The tech giant made an early $8 billion investment in Anthropic, which was valued at over $74 billion as of the first quarter. Then, in April, it poured another $5 billion into Anthropic along with the promise of another $20 billion to come, provided Anthropic reaches "certain commercial milestones."
Given Anthropic's April valuation of $380 billion, Amazon's total stake in Anthropic was likely worth about one-quarter of the value of the company at the time. However, that value skyrocketed to $965 billion in a Series H round of funding shortly thereafter. Anthropic's value will probably increase further after it goes public, with a likely post-IPO market cap of over $1 trillion.
The dollar value of its investment isn't the only thing Amazon is getting from Anthropic. The AI company announced it would spend more than $100 billion on AWS over the next decade. That includes a commitment to run its LLMs on Amazon's custom Trainium AI chips.
Image source: The Motley Fool.
Alphabet's major stake Another major Anthropic investor is Google parent Alphabet (GOOG -1.05%)(GOOGL -1.11%), which committed "up to $40 billion" in Anthropic investments in April. Similar to Amazon, that $40 billion consisted of a $10 billion upfront investment, followed by an additional $30 billion that's contingent on Anthropic reaching certain performance milestones.
Like Amazon, Alphabet also made more than $3 billion in early investments in Anthropic, and it's now looking to reap the rewards of that early investment.
Google's revenue has also been juiced in recent quarters by AI services on its Google Cloud Platform (GCP). Google Cloud revenue increased 82% to $24.8 billion in its most recent quarter, which management attributed largely to "an increase in GCP across enterprise AI Solutions and enterprise AI Infrastructure."
So it shouldn't surprise anyone that Alphabet apparently received $200 billion in commitments from Anthropic in support of GCP.
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Stakeholders are already benefiting While the general public can't do anything but wait breathlessly for Anthropic shares to start trading post-IPO, Alphabet and Amazon shareholders are already benefiting from Anthropic's success.
Alphabet's second-quarter net income of $112.1 billion was the largest quarterly profit in company history, up 298% year over year. But that was mostly due to $98 billion in "other income," which the company explained was "primarily the result of net unrealized gains on our equity securities." In other words, it was thanks to the company's investments, including its stake in Anthropic.
Amazon was even more specific about the source of its $53.4 billion in Q2 "non-operating pre-tax other income," stating it was "primarily from our investments in Anthropic."
So if investors don't want to wait for Anthropic's IPO, buying shares of Alphabet or Amazon will get them exposure to Anthropic stakes that are already paying off for their owners.
Empire Life Investments Inc. trimmed its stake in Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 7.0% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 319,666 shares of the e-commerce giant’s stock after selling 24,050 shares during the period. Amazon.com comprises about 4.3% of Empire Life Investments Inc.’s investment portfolio, making the stock its 4th largest position. Empire Life Investments Inc.’s holdings in Amazon.com were worth $76,189,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds and other institutional investors also recently made changes to their positions in the company. Trust Asset Management LLC raised its stake in shares of Amazon.com by 3.3% during the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock worth $26,000 after buying an additional 3,414 shares during the last quarter. MilWealth Group LLC increased its position in shares of Amazon.com by 79.0% in the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after buying an additional 79 shares in the last quarter. Lifetime Wealth Management P.C. bought a new stake in shares of Amazon.com in the 4th quarter valued at $45,000. Elkhorn Partners Limited Partnership lifted its holdings in Amazon.com by 900.0% during the fourth quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock worth $46,000 after acquiring an additional 180 shares in the last quarter. Finally, Fairway Wealth LLC raised its holdings in 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 buying an additional 108 shares during the period. 72.20% of the stock is owned by institutional investors.
Insider Buying and Selling In other news, CEO Andrew R. Jassy sold 20,000 shares of the business’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $5,180,200.00. Following the transaction, the chief executive officer owned 2,235,766 shares of the company’s stock, valued at approximately $579,085,751.66. The trade was a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 6,362 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $1,647,821.62. Following the completion of the sale, the chief executive officer owned 476,681 shares in the company, valued at $123,465,145.81. This represents a 1.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 71,589 shares of company stock worth $18,568,785 in the last quarter. Company insiders own 8.90% of the company’s stock.
Key Headlines Impacting Amazon.com Here are the key news stories impacting Amazon.com this week: Positive Sentiment: AI and AWS remain the key growth drivers. Recent coverage highlights accelerating AWS growth, Amazon’s planned purchase of roughly 2 million Nvidia GPUs and approximately $200 billion in 2026 AI-infrastructure investment. These initiatives could support cloud revenue, advertising and future operating leverage, although they require substantial near-term capital spending. Amazon and Nvidia AI infrastructure article Positive Sentiment: Amazon is expanding its strategic infrastructure and logistics footprint. A multiyear, multibillion-dollar Corning agreement will provide optical-fiber and connectivity products for data centers, while Amazon expects its own delivery network to handle nearly 90% of U.S. packages by 2029. Both developments could improve capacity, efficiency and control over fulfillment costs. Amazon Corning fiber agreement Positive Sentiment: Zoox reached another commercialization milestone. Amazon’s autonomous-vehicle unit expanded paid robotaxi service to Las Vegas’ Harry Reid International Airport, broadening a potential future growth platform beyond e-commerce and cloud computing. Zoox Las Vegas airport expansion Neutral Sentiment: High spending is creating both opportunity and valuation risk. Analysts continue to identify AMZN as a leading AI and cloud beneficiary, but elevated data-center investment has pushed Amazon’s trailing free cash flow negative. Investors are assessing whether current spending will generate returns comparable to the company’s earlier AWS buildout. Amazon capital spending and higher rates article Negative Sentiment: DOJ scrutiny is the most immediate overhang. The Justice Department expanded its beef-price investigation to eight retailers, including Amazon, seeking pricing data as it examines possible anticompetitive conduct in the meat supply chain. The inquiry does not establish wrongdoing, but it raises regulatory and potential litigation risk. DOJ beef price probe Negative Sentiment: Labor concerns and insider selling add pressure. Workers at Amazon’s Riverside, California warehouse held a one-day strike over alleged retaliation and union-recognition issues. CEO Douglas Herrington separately sold 1,000 shares under a prearranged Rule 10b5-1 plan; the sale was small relative to his remaining holdings but may draw limited investor attention. Analysts Set New Price Targets AMZN has been the subject of a number of recent research reports. HSBC reissued a “buy” rating and issued a $310.00 target price on shares of Amazon.com in a research report on Friday, July 31st. KeyCorp increased their price objective on Amazon.com from $335.00 to $350.00 and gave the company an “overweight” rating in a report on Friday, July 31st. Zacks Research upgraded Amazon.com from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 4th. Robert W. Baird set a $310.00 price target on Amazon.com and gave the stock an “outperform” rating in a research note on Friday, July 31st. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Amazon.com in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $323.26.
Get Our Latest Analysis on Amazon.com
Amazon.com Stock Down 0.2% Shares of Amazon.com stock opened at $258.51 on Friday. The company has a 50-day simple moving average of $254.14 and a two-hundred day simple moving average of $242.33. Amazon.com, Inc. has a 52-week low of $196.00 and a 52-week high of $287.20. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03. The stock has a market capitalization of $2.79 trillion, a PE ratio of 20.80, a price-to-earnings-growth ratio of 2.00 and a beta of 1.44.
Amazon.com (NASDAQ:AMZN – Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating the consensus estimate of $1.82 by $3.93. Amazon.com had a 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 last year, the firm earned $1.68 earnings per share. The firm’s quarterly revenue was up 19.6% compared to the same quarter last year. On average, analysts anticipate that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.
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 -0.15%) is an exceptional business. It has a strong presence in multiple massive, high-growth industries. Its $2.7 trillion market capitalization makes it one of the most valuable companies on Earth.
However, the shares have disappointed investors. They are up 47% in the trailing five-year period (as of Sept. 2), significantly underperforming the S&P 500 index. They also trade 10% below their all-time record, which was established about a month ago in early August.
This setup looks like a good opportunity for investors to buy a stake in the "Magnificent Seven" stock. Here's what I predict a $10,000 allocation made at a 10% discount today will be worth in 10 years.
Image source: The Motley Fool.
Massive scale is an inhibiting factor to consider In the past decade, Amazon's stock price has climbed 561%. During this time, net sales soared 560%. The top line went from $30.4 billion in second-quarter 2016 to a whopping $200.6 billion in the most recent quarter (ended June 30). This business has been one of the most impressive success stories in history.
Given that it's a colossal enterprise these days, however, I think it would be silly for investors to expect a similar type of return between now and September 2036. Sell-side analysts hold a consensus view that revenue will reach $828.3 billion in 2026. Amazon passed Walmart last year to hold the title of having the highest sales figure.
I still believe the stock has what it takes to beat the market in the next 10 years. I predict that Amazon shares will rise 300% during that time, turning $10,000 into $40,000.
Amazon's revenue gains surely aren't going to exceed 20% annually in the future. After all, it won't be long until yearly sales start to top a staggering $1 trillion.
However, its focus on operating leverage and taking advantage of its scale will be key. As a result, the most critical driving force for the stock will be earnings growth.
From 2025 to 2028, Amazon's revenue will increase by 53%, according to consensus expectations. Its diluted earnings per share, on the other hand, are forecast to climb at a much faster rate of 86%. It's reasonable to think that this trend of the bottom line outpacing sales will hold up in the future.
Investors should also consider the stock's valuation. It trades at an enterprise value-to-earnings before interest and taxes (EBIT) ratio of 29.2 right now. This is inexpensive from a historical perspective. It's anyone's guess what multiple shares will trade at in 10 years. However, the current entry point is intriguing and adds potential upside.
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Amazon is a business that belongs in your portfolio Just because Amazon's return potential in the coming decade most likely won't mimic what was achieved in the last 10 years, it doesn't mean investors should completely disregard the business. This is still an exciting growth story. In fact, Amazon continues to be a very compelling opportunity for those seeking exposure to some powerful technological trends.
The company dominates online shopping, thanks to its expansive ecosystem and well-oiled logistics system. Consumers benefit from a top-notch user experience, low prices, and fast/free shipping. In the U.S., 40% of all e-commerce spending goes through the Amazon marketplace.
Digital advertising has quickly become a major contributor to financial performance. Through the first six months of 2026, the company collected $37 billion in ad sales. This figure rose by 25% compared to the same period last year.
Amazon is able to lean on the popularity of its e-commerce site. Understanding shopper intent, it displays targeted ads that can be monetized.
The most important segment in the coming decade might be Amazon Web Services, which accounted for 21% of the business's entire revenue base in Q2, while representing 60% of total operating income. Growth accelerated in recent quarters on the back of heightened demand for cloud services and artificial intelligence capabilities.
Investors will want to take advantage of Amazon's 10% dip and acquire shares today. This is a business that belongs in a long-term portfolio.
Amazon.com, Inc. offers a compelling GARP opportunity with a PEG ratio below 1x and double-digit annual return potential. I expect its robust EPS growth and revenue expansion to sustain with the ongoing catalysts. Notable drivers include AWS, AI initiatives, and retail efficiency gains.
Amazon.com AMZN , the cloud and e-commerce heavyweight, rolled Anthropic's Claude Fable 5.1 into Amazon Bedrock and Claude Platform on AWS as its shares traded at $256.67. That price sits 3.84% above the stock's $247.18 GF Value™ estimate—a modest premium, but one that leaves little room for Amazon's AI strategy to stumble.
The real hook is cost. Anthropic expects its new cache pricing to make typical token-based workloads 25% cheaper than Fable 5. Savings could reach roughly 45% for highly agentic work. That price cut lands inside a monster partnership: Anthropic has committed more than $100 billion to AWS technology over ten years, reserved up to five gigawatts of capacity and spread its workloads across more than one million Trainium2 chips. More than 100,000 customers already access Claude through Bedrock.
Now comes the $100 billion question: will cheaper AI unleash enough demand to lift AWS faster? Amazon's latest quarterly results showed $42.2 billion in AWS revenue, equal to a $168.8 billion annualized pace. Anthropic's average $10 billion yearly commitment represents about 5.9% of that run rate. Lower prices can pull more customers and agents onto AWS, but they also shrink the computing needed for each task. Amazon wins if the workload boom overwhelms the efficiency gains.
Johnson Investment Counsel Inc. cut its holdings in shares of Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 3.6% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 921,278 shares of the e-commerce giant’s stock after selling 33,983 shares during the period. Amazon.com comprises about 1.6% of Johnson Investment Counsel Inc.’s investment portfolio, making the stock its 12th biggest holding. Johnson Investment Counsel Inc.’s holdings in Amazon.com were worth $219,577,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also modified their holdings of the business. Gryphon Financial Partners LLC raised its holdings in shares of Amazon.com by 7.5% in 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 in the last quarter. First Citizens Bank & Trust Co. boosted its holdings in Amazon.com by 1.7% during the first quarter. First Citizens Bank & Trust Co. now owns 303,862 shares of the e-commerce giant’s stock worth $63,285,000 after buying an additional 5,104 shares in the last quarter. Narwhal Capital Management boosted its holdings in Amazon.com by 2.3% during the fourth quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant’s stock worth $49,997,000 after buying an additional 4,854 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in Amazon.com by 21.0% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 24,653,228 shares of the e-commerce giant’s stock worth $5,690,463,000 after buying an additional 4,275,942 shares during the last quarter. Finally, Blue Chip Partners LLC increased its holdings in shares of Amazon.com by 1.8% in the first quarter. Blue Chip Partners LLC now owns 147,461 shares of the e-commerce giant’s stock valued at $30,712,000 after buying an additional 2,583 shares in the last quarter. 72.20% of the stock is owned by hedge funds and other institutional investors.
Amazon.com Price Performance Shares of AMZN opened at $258.90 on Friday. The company has a market capitalization of $2.79 trillion, a price-to-earnings ratio of 20.83, a P/E/G ratio of 1.97 and a beta of 1.44. Amazon.com, Inc. has a fifty-two week low of $196.00 and a fifty-two week high of $287.20. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. The business’s 50-day moving average is $253.63 and its 200-day moving average is $242.22.
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 (EPS) for the quarter, topping analysts’ consensus estimates of $1.82 by $3.93. The business 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%. The firm’s revenue was up 19.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.68 earnings per share. Equities research analysts expect that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year. Insider Buying and Selling In other news, SVP David Zapolsky sold 9,258 shares of the company’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $259.77, for a total value of $2,404,950.66. Following the transaction, the senior vice president directly owned 41,190 shares of the company’s stock, valued at approximately $10,699,926.30. This represents a 18.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 1,000 shares of the company’s stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $254.77, for a total transaction of $254,770.00. Following the completion of the transaction, the chief executive officer directly owned 475,681 shares in the company, valued at $121,189,248.37. This trade represents a 0.21% 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 71,589 shares of company stock worth $18,568,785. Insiders own 8.90% of the company’s stock.
Trending Headlines about Amazon.com Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AWS and AI investment remain the primary bullish catalysts. Recent coverage highlights AWS’s fastest growth in 18 quarters and Amazon’s roughly $200 billion 2026 AI-infrastructure investment. Analysts view AWS’s higher growth and profitability as key drivers of future earnings, despite the substantial capital spending required. The Bull Case for This Stock Is Getting Harder to Ignore Positive Sentiment: Amazon is expanding its AI infrastructure ecosystem. The company signed a multiyear, multibillion-dollar agreement with Corning for optical fiber, cable and connectivity products, supporting data-center expansion and potentially improving network capacity for AI workloads. Amazon Signed a Multibillion-Dollar Deal With a 175-Year-Old Glassmaker Positive Sentiment: Zoox reached another commercialization milestone. Amazon’s autonomous-vehicle unit expanded paid robotaxi service to Harry Reid International Airport in Las Vegas, strengthening its operating footprint as competition with Waymo, Tesla and Uber intensifies. Amazon’s Zoox Expands Its Robotaxi Service to Las Vegas Airport Positive Sentiment: New commerce and logistics initiatives could support long-term growth. YouTube creator-shopping tools give sellers another customer-acquisition channel, while Amazon expects its delivery network to handle nearly 90% of its U.S. packages by 2029, potentially improving control over fulfillment costs. How Could Amazon.com Gain From New Creator Shopping Tools? Neutral Sentiment: Amazon added AI-powered scam protection to Alexa for Shopping. U.S. customers can ask Alexa whether an email, text, call or other message is genuinely from Amazon. The feature may strengthen customer trust, but its direct financial impact is unclear. Amazon Adds Alexa Scam Protection as Consumer Fraud Losses Rise Negative Sentiment: Regulatory pressure is a significant overhang. The Department of Justice requested beef-pricing data from Amazon and other retailers as part of an investigation into rising prices. Separately, Amazon continues to face scrutiny from the Federal Trade Commission over its advertising practices. DOJ Requests Beef Price Data From Major Retailers Negative Sentiment: Labor and cost concerns persist. Teamsters launched a one-day strike at Amazon’s large Riverside warehouse, while the company is reportedly cutting additional Bay Area jobs. CEO Douglas Herrington also sold 1,000 shares under a prearranged Rule 10b5-1 plan; the transaction was small relative to his remaining holdings but may attract limited investor attention. Analysts Set New Price Targets A number of brokerages have recently commented on AMZN. UBS Group set a $318.00 price objective on Amazon.com and gave the company a “buy” rating in a research report on Friday, July 31st. Mizuho set a $330.00 target price on Amazon.com and gave the stock an “outperform” rating in a research report on Friday, July 31st. Benchmark upped their target price on Amazon.com from $370.00 to $400.00 and gave the company a “buy” rating in a report on Friday, July 31st. Piper Sandler reiterated an “overweight” rating and issued a $320.00 price target (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Amazon.com in a research note on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $323.26.
Check Out Our Latest Analysis on AMZN
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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Microsoft's Azure disclosure reveals AWS's scale advantage--and how much profitability Amazon must protect. Summary
AWS leads Azure by 43%, but leadership brings a larger spending burden.
Amazon.com AMZN, the e-commerce and cloud-computing giant priced at $259.14, received a fresh scoreboard for the cloud war after Microsoft disclosed $29.4 billion in quarterly Azure revenue. AWS generated $42.2 billion. Amazon's lead: a crushing $12.8 billion.
Amazon's second-quarter results packed more firepower. AWS revenue jumped 37%, while operating income reached $16.6 billion. Amazon produced $200.6 billion in total revenue and plans to unleash approximately $220 billion in capital spending during 2026. This is not cautious expansion. It is a full-scale infrastructure offensive.
AWS delivered about 43.5% more quarterly revenue than Azure and converted 39.3% of sales into operating profit. Amazon's $259.14 share price sits 4.84% above its $247.18 GF Value estimate, showing that some cloud dominance is already priced in. The next test is brutal but simple: keep AWS growing without letting the construction bill eat the payoff.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Hyperscalers are companies that own massive data centers. While they are often associated with cloud computing providers, that isn't always the case, as some megacap tech companies still prefer to build out their own infrastructure to save costs.
Ultimately, these are the companies that are driving the AI infrastructure boom. They are spending massive amounts on capital expenditures (capex), and while pick-and-shovel plays like semiconductor companies are reaping the rewards, it is the deep-pocketed hyperscalers that are in control. After all, if they don't see strong returns on their AI infrastructure investments, they can cut off the spending spigot.
I currently own shares in three top hyperscalers -- Amazon (AMZN +1.61%), Alphabet (GOOGL +1.63%) (GOOG +1.63%), and Meta Platforms (META +4.30%) -- and think they are three of the best growth stocks to own over the long haul. All three have great core businesses with wide moats that generate massive operating cash flow that can help pay for their AI infrastructure spending, on which they are getting great returns. Here's why I own these three stocks.
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If you're like me, you're likely a frequent customer of Amazon. The company has built the nation's dominant e-commerce platform, and its warehouse and logistics network creates a wide moat that is unlikely to be challenged in the U.S. Meanwhile, its internal investments in robots and AI have created enormous operating leverage in the business.
What people may not realize, though, is that the business that contributes the most to Amazon's bottom line is actually its cloud computing unit, Amazon Web Services. The company created the entire infrastructure-as-a-service concept, and it remains the world's largest cloud provider today. The company also has some strong built-in advantages due to its custom chips, which help reduce inference costs, and its partnerships with leading frontier labs Anthropic and OpenAI.
Amazon is starting to fire on all cylinders again and has a big opportunity in front of it with a goal to eventually reach $1 trillion in cloud revenue.
Alphabet
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Alphabet is best known for its Google search business, which continues to be a money-making machine. Meanwhile, the incorporation of its Gemini large language model into its platform and AI tools such as AI Overviews, AI Mode, Circle to Search, and Lens have been helping drive query and revenue growth. The company has one of the largest digital ad platforms on the planet, which is helping it drive consumer AI revenue better than other frontier labs such as OpenAI.
At the same time, its Google Cloud business has been growing at a rapid pace, with segment revenue surging 82% last quarter to $24.8 billion and operating income more than tripling to $8.8 billion. The company's Tensor Processing Units (TPUs), which are widely considered to be the best custom AI accelerators in the market today, give it a big cost advantage in training its own models, running inference, and offering a cheaper alternative to its cloud computing customers. It has even begun selling some TPUs directly to customers for deployments outside of Google Cloud.
Alphabet is the most complete AI company, and that positions it to be a long-term winner in the space.
Image source: Getty Images.
Meta Platforms
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Meta Platforms is an unusual hyperscaler in that it currently does not operate a cloud computing business -- it built out its massive data center infrastructure solely to support its own compute needs. However, with demand for compute power so high, it is considering getting into the cloud business.
Few companies have been as good at using AI to drive growth in their core businesses as Meta, but it has a flywheel business built for AI. The company uses AI to improve its content recommendation engine to keep users on its platforms longer. This allows it to serve people more ads. At the same time, it is also giving advertisers better tools to connect with and convert users, which is helping it increase the prices it charges for ads. The better its models become, the more revenue it generates. In fact, it is believed that Meta could surpass Google this year to become the largest digital advertising platform in the world.
The stock has fallen to cheap levels over the past year or so due to market worries about the company's high AI infrastructure spending, and I think now is a great time to scoop it up. In fact, while I like all three of these stocks, Meta Platforms may have the most medium-term upside.
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Amazon.com Inc. NASDAQ: AMZN has built its empire on a relentless obsession with doing things faster and cheaper, so news that it's quietly working to automate one of the last stubbornly manual corners of its operation should surprise nobody. What might raise an eyebrow is just how ambitious the plan appears.
The project, known internally as Tetromino, is a reported effort to bring AI and robotics to the final stretch of Amazon's delivery network: the fiddly business of sorting packages and readying them for the vans that carry them to your door. It's exactly the kind of labor-heavy work that has so far resisted mechanization, and cracking it could make the whole system dramatically more efficient.
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The news lands at a slightly awkward moment for the shares, which have slipped roughly 10% from the record high they touched last month and look vulnerable to falling further. That backdrop makes the question all the more pointed: could a deeper push into automation be exactly the kind of long-term catalyst the stock needs, or is it a distraction from more immediate concerns?
Project Tetromino Targets Amazon’s Last-Mile Cost ProblemAccording to the reports, based on an internal planning document, Tetromino aims to automate the tricky task of organizing packages and preparing them for delivery vehicles. This step still relies heavily on human hands. The document reportedly calls for a pilot facility in 2028, with the system processing packages at around two and a half times the rate of Amazon's existing delivery stations.
It's worth stressing that this remains early-stage, and Amazon has been quick to manage expectations. The company disputed the financial projections and timeline in the reported internal document, describing Tetromino as a concept whose plans could change substantially. In other words, this is a glimpse of a direction of travel rather than a finished blueprint.
Even so, it fits a clear pattern. Amazon has said it expects to more than double the number of robotic arms across its network this year alone, and Tetromino would extend that drive into territory it has not yet conquered. The ambition is unmistakable, even if the details remain fuzzy.
Automation Could Unlock Amazon’s Next Margin LeverAmazon.com Stock Forecast Today12-Month Stock Price Forecast:
$323.09
25.36% Upside
Moderate Buy
Based on 59 Analyst Ratings
Current Price$257.72High Forecast$400.00Average Forecast$323.09Low Forecast$218.00Amazon.com Stock Forecast Details
To grasp why any of this matters for the stock, you have to understand the sheer scale of Amazon's e-commerce and logistics operation. Moving billions of packages around the world is enormously expensive, and much of that expense is labor. Anything that shaves cost from each package handled has an outsized impact when multiplied across such colossal volumes.
That's the heart of the bull case. If Amazon can automate a step that today demands substantial manual work, it stands to lower its cost per package and squeeze more profit from its vast retail machine as volumes grow. With an installed base already numbering more than a million robots, the company has both the scale and the expertise to make automation a powerful competitive weapon.
There is a second, subtler prize, too. A more automated network doesn't just cut costs; it can be rented out to others. Amazon has been opening up its logistics muscle to outside merchants, and the more efficient that network becomes, the more profitably it can monetize all that capacity, turning a cost center into a potential earner.
Execution Risk Still Clouds the Robotics Bull CaseFor all that promise, the bears have some fair objections, and they start with the simple fact that this is far from a done deal. Automating the messy, unpredictable final steps of delivery is a much harder problem than bolting robots into a warehouse, and there's no guarantee Amazon cracks it, or that the savings justify the cost when it does.
That points to the broader worry about spending. Amazon is pouring staggering sums into AI, robotics, and infrastructure, and some investors fret this relentless capital intensity could weigh on cash generation if the returns disappoint. An expensive kit that fails to deliver durable savings would be a poor trade, no matter how impressive the technology.
Then there is the awkward matter of jobs. Amazon insists its automation is designed to support workers rather than replace them. Still, reports based on internal documents suggest greater use of robots could slow its warehouse hiring over the coming decade. That is a delicate balance to strike, and one that could invite scrutiny as the technology spreads.
AMZN Pullback Puts the Long-Term Catalyst in FocusSo what should investors make of it all? On its own, a single early-stage project, however clever, won't transform a company the size of Amazon overnight, and the disputed timeline means any real benefit is years away at best.
Viewed through a wider lens, though, Tetromino is a useful signal of where Amazon is heading. It underscores a long-term strategy of grinding down costs and boosting efficiency across an already formidable logistics network, precisely the sort of relentless self-improvement that has made the company so dominant.
For investors, then, the project is best seen not as a reason to buy the shares today, but as a reminder of the powerful long-term forces still working in Amazon's favor. With the stock under some near-term pressure, those looking to build or add to a long-term position might have just gotten a fresh reason to be a little more bullish.
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AWS just posted its fastest growth in 18 quarters, yet the most compelling reason to keep buying Amazon stock has nothing to do with last quarter's numbers at all.
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I keep hitting the buy button on Amazon (NASDAQ:AMZN | AMZN Price Prediction), and after the stock added 10.47% year to date to reach $254.98, I am still adding. The reason is simple. AWS is speeding up on a very large base, and every other part of this business is compounding alongside it. When the biggest cloud franchise on earth is accelerating instead of maturing, I want to own more of it, not less.
Why AWS Alone Justifies Every Share I Buy Andy Jassy said it plainly on the July call: “AWS is booming right now.” AWS grew 37% year over year to $42.232 billion in Q2, its fastest growth in 18 quarters, and it did so at a 39.4% operating margin. That single segment is now running at a $169 billion annualized revenue run rate with a backlog of $496 billion growing triple digits year over year. As a long-term owner, I read that backlog as revenue that is already spoken for.
The AI numbers under the hood are the second reason I keep buying. Amazon’s AI and chips businesses each eclipsed $25 billion in annualized run rates with triple-digit growth. Anthropic committed to up to 5 GW of Trainium capacity, and OpenAI committed roughly 2 GW starting 2027. Graviton is now used by 98% of Amazon’s top 1,000 EC2 customers. This is what pricing power in silicon looks like.
The third pillar is that the rest of the company is compounding too. Advertising delivered $19.809 billion, up 26%. Consolidated revenue reached $200.606 billion, and operating income climbed 43.24% to $27.461 billion. Analysts have taken notice: the fiscal 2026 EPS consensus has moved to $12.49 from $8.72 just 30 days ago, with 45 upward revisions against one downward.
Why I Skip Microsoft, Alphabet, and Walmart Here The names a reader reaches for first are Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), and Walmart (NYSE:WMT). I own some of those too, but my incremental dollar goes to Amazon because no one else stacks a $496 billion cloud backlog on top of a $19.8 billion advertising business growing 26% and a retail engine that grew worldwide paid units 17%. Azure is a fine business, and Google Cloud is real, but I can only see one company delivering “about 80% more than our largest increase ever” in a single quarter of cloud revenue adds. Walmart runs a great store, while Amazon runs Bedrock and Trainium.
A Risk I Am Not Waving Away Free cash flow turned negative at -$7.6 billion TTM. Q2 capital expenditures hit $54.208 billion, and management has guided to roughly $200 billion of capex for 2026. If AI demand cools, that spending will look premature (the power, cooling, and networking suppliers riding the same wave are the subject of our free AI infrastructure report). Here is why I am still buying anyway: Amazon spends data-center capital two years before monetization begins, servers break even in a little less than three years, and useful lives stretch at least five to six years on chips inside buildings that last 30-plus years. Most AI capacity is contracted for at least five-year terms. That is a rented factory with contracted demand.
What Keeps My Buy Button Active The lion’s share of 2027 capacity is largely reserved, some 2028 capacity is already spoken for, and Amazon is on track to double power capacity by the end of 2027 versus 2025. Jassy told owners he now believes AWS can become “a trillion dollar annual revenue business for us in time.” I plan to own the shares when it gets there.
Contact [email protected] for any questions or corrections.
Emise dluhopisů souvisejících s AI a technologiemi jsou pro úvěrové investory stále obtížnější ignorovat, a to vzhledem k objemu nové nabídky v poslední době a epizodám zvýšené volatility. To, co bylo zpočátku z velké části jen o americkém segmentu investičního stupně, se nyní rozšiřuje napříč regiony i napříč spektrem úvěrů různé kvality. Společnost Fidelity International se zabývá rozhodováním, které vzniká u strategií zaměřené na výnos bez omezení nějakým benchmarkem, a vysvětluje, proč v současnosti udržuje v tomto sektoru pouze omezenou expozici.
Argumenty ve prospěch dluhopisů souvisejících s AI
„Již dlouho jsme zastánci konceptu „bezpečného výnosu“ (safe yield) u investic s pevným výnosem. Zatímco otazníky ohledně rozvah vyspělých ekonomik a fiskální disciplíny přetrvávají, není pochyb o tom, že některé z největších a nejkvalitnějších úvěrových titulů na světě trpí tím, že musí své dluhopisy oceňovat s přirážkou vůči „bezrizikové“ sazbě, přestože mají výrazně lepší rozvahu než státy, vůči jejichž výnosům se oceňují. V tomto kontextu je získání přibližně 50–100 bazických bodů nad americké státní dluhopisy nebo německé státní dluhopisy například u nezadlužených emitentů s ratingem AA nebo A teoreticky atraktivní příležitostí pro investory zaměřené na celkový výnos.
Velký význam také přikládáme ukazateli „dluh v poměru k EV“ jako užitečnému indikátoru celkového úvěrového rizika. Tento ukazatel může často poskytnout mnohem více informací než tradičnější ukazatele, jako je dluh k EBITDA nebo volný Cash Flow ke dluhu. Dluh v poměru k EV jednoznačně ukazuje, jakou hodnotu trh přisuzuje cenným papírům, které jsou (alespoň teoreticky!) podřízené pohledávkám věřitelů vůči aktivům a peněžním tokům společnosti. Bez ohledu na to, kolik prostředků hyperskalární společnosti v příštích několika letech vloží do AI, jejich hodnota vlastního kapitálu ve výši pravděpodobně 13 bilionů dolarů znamená, že věřitelé se nemusí obávat znehodnocení svých pohledávek.
Dnešní valuace jsou atraktivní. Není pochyb o tom, že technologický sektor se z různých hledisek jeví jako „levný“, ať už jde o relativní ocenění sektoru, spread na jednotku zadlužení nebo spready upravené podle ratingu,“ hodnotí situaci James Durance.
Co nás drží zpátky?
Rychlost a rozsah rozvoje AI jsou tak obrovské, že převyšují jakékoli historické srovnání, které by za něco stálo. Kapitálové výdaje na datová centra, které v roce 2027 dosáhnou více než 3 % amerického HDP a během pouhých dvou let přidají 1,7procentního bodu k HDP, představují nejrychlejší investiční boom v historii (jak uvádí Apollo). To znamená, že financování tohoto rozvoje je také v rozsahu, který dosud nebyl otestován. Jelikož jde o tak významný příspěvek k růstu HDP, případné zpomalení nebo obrat tohoto trendu by mohl být významným negativním faktorem pro ekonomiku jako celek.
Výnos z AI – jak pro společnosti realizující kapitálové výdaje, tak pro zákazníky investující do této technologie – zůstává obtížně vyčíslitelný. Cirkulární financování pomáhá rozvoji pokračovat, avšak ziskové marže v ekonomice mimo technologický sektor, stejně jako marže samotných tvůrců této infrastruktury, zatím nezažily takový skok, jaký bychom potřebovali vidět, aby ospravedlnil obrovské množství investovaného kapitálu.
Historie není nakloněna nadvýkonnosti sektorů s rychlým růstem zadlužení. Sektory s nejrychlejším růstem dluhu obvykle v klíčových časových obdobích zaostávaly za trhem, často s dramaticky negativními důsledky – zejména technologie/ telekomunikace, média a technologie v roce 2001, finanční sektor a nemovitosti v roce 2007 a břidlice a energetika v roce 2014.
Zdá se, že úvěrový trh zatím zvolil kategorizovat většinu rizika v tomto prostoru spíše jako riziko související s nabídkou než jako riziko vyplývající z úvěrových fundamentů. Vyšší než očekávaná nabídka byla nepochybně hlavním faktorem nedávného zhoršení výkonnosti dluhopisů. Oznámení Googlu, že letos již nebude emitovat další dluh v dolarech, a jakékoli další známky toho, že by tempo emisí mohlo zpomalovat, by proto měly být významným pozitivním faktorem pro trh, který se letos potýká s nadměrným objemem technologických emisí.
Co to znamená pro nastavení pozic?
Jako investoři, kteří nejsou vázáni benchmarkem, můžeme na situaci nahlížet trochu jinak než manažeři, kteří se vůči benchmarku poměřují. Benchmarkoví investoři se musí zaměřovat na velikost jednotlivých sektorů ve svých indexech (viz obrázek 1 níže) a na související tracking error, aby měli co nejlepší šanci generovat alfa. Neomezený investor se naopak může věnovat tomu, zda si sektor jako celek a každý jednotlivý titul skutečně zaslouží jeho pozornost.
Zadruhé, na jiných částech globálního úvěrového trhu můžeme najít srovnatelné nebo dokonce vyšší výnosy než v technologickém sektoru, aniž by s sebou nesly stejné rizikové faktory. To může znamenat podstoupení rizik v jiných oblastech, jako je nižší úvěrová kvalita (BB), riziko podřízenosti (evropské finanční společnosti a podnikové hybridní dluhopisy), strukturální riziko (CLO) nebo cyklické riziko (například nemovitosti nebo automobilový sektor).
Zatřetí, tradičně jsme se zaměřovali na větší emitenty s dlouhou historií na kapitálových trzích a na známé společnosti, protože se domníváme, že to obecně vede k nižšímu riziku finančních potíží a selhání v průběhu času. Přestože je rozvoj AI skutečný a jeho potenciální ekonomické dopady jsou skutečně zásadní, domníváme se, že tato revoluce bude mít své vítěze i poražené. Za jinak stejných podmínek by to mohlo znamenat vyšší míru defaultů – zejména u některých novějších, menších a spekulativnějších struktur, které přicházejí na trh,“ vysvětluje James Durance.
Technologie a hyperskalární společnosti by mohly dosáhnout až 11 % amerického indexu podnikových dluhopisů investičního stupně
Zdroj: Fidelity International, Deutsche Bank, Bloomberg, ICE Indices. Mezi hyperscalery jsou zahrnuty společnosti MSFT, AMZN, META, GOOGL, ORCL, NVDA, SPCX.
Zoox isn’t wasting any time now that it’s allowed to operate and charge for rides in its custom-built robotaxi.
The company has extended its commercial robotaxi service in Las Vegas to include rides to and from Harry Reid International Airport. Customers will be able to hail rides to the airport beginning Thursday, according to Zoox. The expansion, which unlocks a critical ride-hailing destination, builds on a series of recent wins for the Amazon-owned autonomous vehicle technology company.
Silicon Valley-based Zoox spent more than a decade developing its self-driving system and custom robotaxi that lacks traditional controls like a steering wheel and pedals. While it has made progress, even providing rides to customers in Las Vegas for a year, it wasn’t able to operate as a true commercial robotaxi service.
That changed in August after federal safety regulators gave Zoox a temporary exemption from certain motor vehicle safety standards. The commercial exemption, which lasts two years and allows Zoox to deploy up to 2,500 vehicles, spans eight federal motor vehicle standards, including windshield defrosting and light vehicle braking systems.
The exemption has kicked Zoox’s business expansion into drive. The company started charging for rides on August 10, said it would begin testing its self-driving vehicles in San Diego and Houston, and released its safety framework — all actions that point to a company ramping up operations.
Image Credits:Zoox / The company’s expansion to the Las Vegas airport appears to give it a bit of an edge over traditional ride-hailing companies Uber and Lyft, at least when it comes to grabbing a ride from the airport into the city. According to Zoox, its robotaxi will pick up and drop off riders at both airport terminals near baggage claim. While Uber and Lyft can drop passengers off at the curb at the terminal, the pick up location is about a five- to ten-minute walk from baggage claim on the upper floor of a nearby parking garage.
Zoox is the only robotaxi company operating a service to the Las Vegas airport, but more competition is coming.
The city has served as a testing ground for several autonomous vehicle companies over the years, and is now expected to be teeming with commercial robotaxi operators in the next year. Tesla, Uber and Waymo all received permits last month from the Nevada Transportation Authority to operate commercial robotaxi services in Clark County, home to Las Vegas. Uber plans to operate robotaxis through partnerships with Hyundai subsidiary Motional, and Zoox.
Together, these permits would allow the deployment of up to 8,000 robotaxis across the county over the next 12 months.
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Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.
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Capstone Wealth Management LLC boosted its holdings in Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 116.1% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 5,741 shares of the e-commerce giant’s stock after acquiring an additional 3,084 shares during the period. Amazon.com accounts for about 0.6% of Capstone Wealth Management LLC’s investment portfolio, making the stock its 11th largest position. Capstone Wealth Management LLC’s holdings in Amazon.com were worth $1,368,000 as of its most recent SEC filing.
A number of other institutional investors also recently made changes to their positions in AMZN. Trust Asset Management LLC grew its stake in Amazon.com by 3.3% in the 2nd quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock worth $26,000 after acquiring an additional 3,414 shares during the period. MilWealth Group LLC increased its holdings in Amazon.com by 79.0% in the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after purchasing an additional 79 shares in the last quarter. Lifetime Wealth Management P.C. purchased a new position in Amazon.com in the 4th quarter worth approximately $45,000. Elkhorn Partners Limited Partnership grew its holdings in 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 purchasing an additional 180 shares in the last quarter. Finally, Fairway Wealth LLC increased its position 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 worth $51,000 after acquiring an additional 108 shares during the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.
Key Amazon.com News Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Institutional investors are signaling confidence in Amazon’s AI infrastructure opportunity. Stanley Druckenmiller increased Duquesne’s AMZN position more than tenfold, while Philippe Laffont’s Coatue expanded its stake 49%, reinforcing the thesis that AWS will benefit from sustained AI-computing demand. Stanley Druckenmiller Increased Amazon More Than 10-Fold and Opened an AMD Position Positive Sentiment: AWS growth, accelerating e-commerce revenue and expanding AI infrastructure investment remain key bullish factors. Analysts continue to see substantial upside, including a reiterated $350 price target, although Amazon’s heavy capital expenditures could pressure near-term cash returns. Amazon Retains Top Pick Status Positive Sentiment: Amazon’s new YouTube Shopping partnership allows creators to tag products and earn affiliate commissions, potentially expanding social-commerce traffic and advertising opportunities. Zoox’s expansion into additional U.S. markets also adds a longer-term mobility growth option. How Could Amazon Gain From New Creator Shopping Tools? Neutral Sentiment: The Justice Department requested beef-pricing data from Amazon and other major retailers as part of an investigation into meat-industry pricing. Amazon is not accused of wrongdoing in the reports, but the inquiry adds regulatory visibility. DOJ Expands Beef Price Investigation Negative Sentiment: The FTC and 22 states allege Amazon manipulated advertising auctions and overcharged roughly 1.2 million advertisers by more than $20 billion. Potential penalties, pricing changes and pressure on the high-margin advertising business are the most immediate downside risks. FTC Sues Amazon, Alleging It Overcharged Advertisers Negative Sentiment: Amazon is facing additional workforce friction, including planned corporate job cuts and a one-day Teamsters strike at its large Riverside warehouse. These developments could increase reputational, labor and operating-cost concerns. Insider Transactions at Amazon.com In other news, CEO Matthew S. Garman sold 14,541 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $259.06, for a total value of $3,766,991.46. Following the completion of the transaction, the chief executive officer owned 17,794 shares in the company, valued at approximately $4,609,713.64. This represents a 44.97% 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 2,343 shares of Amazon.com stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $606,860.43. Following the sale, the vice president directly owned 119,780 shares in the company, valued at $31,024,217.80. The trade was a 1.92% 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 70,589 shares of company stock worth $18,314,015. 8.90% of the stock is currently owned by company insiders. Analyst Ratings Changes Several equities research analysts have recently weighed in on the stock. Citigroup reissued a “market outperform” rating on shares of Amazon.com in a research report on Friday, August 14th. Phillip Securities cut shares of Amazon.com from a “strong-buy” rating to a “moderate buy” rating in a research note on Monday, August 3rd. Citizens Jmp reiterated a “market outperform” rating and issued a $315.00 price target on shares of Amazon.com in a research report on Friday, July 31st. Pivotal Research reiterated a “buy” rating and issued a $333.00 price target (up from $320.00) on shares of Amazon.com in a research report on Friday, July 31st. Finally, UBS Group set a $318.00 price objective on Amazon.com and gave the stock a “buy” rating in a research 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 issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Amazon.com presently has a consensus rating of “Moderate Buy” and an average target price of $323.09.
View Our Latest Research Report on AMZN
Amazon.com Trading Up 0.0% Shares of NASDAQ:AMZN opened at $254.98 on Thursday. Amazon.com, Inc. has a 52-week low of $196.00 and a 52-week high of $287.20. The company has a market cap of $2.75 trillion, a P/E ratio of 20.51, a P/E/G ratio of 1.97 and a beta of 1.44. The stock’s 50-day moving average is $252.99 and its 200-day moving average is $241.79. 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 announced its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.82 by $3.93. The business 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%. Amazon.com’s revenue was up 19.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.68 earnings per share. Equities research analysts predict that Amazon.com, Inc. will post 8.05 earnings per share for the current year.
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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Capital Investment Advisory Services LLC lifted its position in Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 1.8% during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 114,946 shares of the e-commerce giant’s stock after buying an additional 1,995 shares during the period. Amazon.com makes up 1.7% of Capital Investment Advisory Services LLC’s holdings, making the stock its 13th largest position. Capital Investment Advisory Services LLC’s holdings in Amazon.com were worth $27,396,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also recently bought and sold shares of the business. Vanguard Group Inc. boosted its stake 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 acquiring an additional 8,913,959 shares in the last quarter. State Street Corp raised its position in shares of Amazon.com by 1.8% during the fourth quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant’s stock worth $89,708,913,000 after purchasing an additional 6,971,680 shares during the period. Geode Capital Management LLC lifted its holdings in shares of 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 valued at $51,753,622,000 after purchasing an additional 2,479,324 shares during the last quarter. Norges Bank purchased a new stake in shares of Amazon.com during the fourth quarter valued at $32,868,735,000. Finally, Auto Owners Insurance Co boosted its position in shares of Amazon.com by 27,376.7% in the 4th quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant’s stock valued at $2,272,397,000 after purchasing an additional 98,090,585 shares during the period. 72.20% of the stock is currently owned by institutional investors.
Insider Buying and Selling at Amazon.com In other Amazon.com news, CFO Brian T. Olsavsky sold 6,172 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $260.31, for a total transaction of $1,606,633.32. Following the transaction, the chief financial officer directly owned 109,207 shares of the company’s stock, valued at $28,427,674.17. This represents a 5.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the company’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $259.77, for a total value of $2,404,950.66. Following the sale, the senior vice president owned 41,190 shares of the company’s stock, valued at approximately $10,699,926.30. This trade represents a 18.35% decrease in their position. 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 70,589 shares of company stock worth $18,314,015 in the last ninety days. Company insiders own 8.90% of the company’s stock.
Wall Street Analysts Forecast Growth AMZN has been the topic of several recent analyst reports. TD Cowen restated a “buy” rating and set a $350.00 price objective (up from $340.00) on shares of Amazon.com in a report on Friday, July 31st. The Goldman Sachs Group restated a “buy” rating and set a $375.00 price target (up from $335.00) on shares of Amazon.com in a report on Friday, July 31st. Telsey Advisory Group set a $335.00 price objective on shares of Amazon.com and gave the stock an “outperform” rating in a research note on Friday, July 31st. Phillip Securities cut Amazon.com from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. Finally, Needham & Company LLC reiterated a “buy” rating and set a $300.00 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 given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $323.09. View Our Latest Analysis on AMZN
Amazon.com Trading Up 0.0% Shares of NASDAQ AMZN opened at $254.98 on Thursday. The business has a 50 day simple moving average of $252.99 and a 200 day simple moving average of $241.79. 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 $2.75 trillion, a price-to-earnings ratio of 20.51, a PEG ratio of 1.97 and a beta of 1.44. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03.
Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating the consensus estimate 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 revenue for the quarter was up 19.6% on a year-over-year basis. During the same quarter last year, the firm earned $1.68 earnings per share. On average, research analysts predict that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.
Key Stories Impacting Amazon.com Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Institutional investors are signaling confidence in Amazon’s AI infrastructure opportunity. Stanley Druckenmiller increased Duquesne’s AMZN position more than tenfold, while Philippe Laffont’s Coatue expanded its stake 49%, reinforcing the thesis that AWS will benefit from sustained AI-computing demand. Stanley Druckenmiller Increased Amazon More Than 10-Fold and Opened an AMD Position Positive Sentiment: AWS growth, accelerating e-commerce revenue and expanding AI infrastructure investment remain key bullish factors. Analysts continue to see substantial upside, including a reiterated $350 price target, although Amazon’s heavy capital expenditures could pressure near-term cash returns. Amazon Retains Top Pick Status Positive Sentiment: Amazon’s new YouTube Shopping partnership allows creators to tag products and earn affiliate commissions, potentially expanding social-commerce traffic and advertising opportunities. Zoox’s expansion into additional U.S. markets also adds a longer-term mobility growth option. How Could Amazon Gain From New Creator Shopping Tools? Neutral Sentiment: The Justice Department requested beef-pricing data from Amazon and other major retailers as part of an investigation into meat-industry pricing. Amazon is not accused of wrongdoing in the reports, but the inquiry adds regulatory visibility. DOJ Expands Beef Price Investigation Negative Sentiment: The FTC and 22 states allege Amazon manipulated advertising auctions and overcharged roughly 1.2 million advertisers by more than $20 billion. Potential penalties, pricing changes and pressure on the high-margin advertising business are the most immediate downside risks. FTC Sues Amazon, Alleging It Overcharged Advertisers Negative Sentiment: Amazon is facing additional workforce friction, including planned corporate job cuts and a one-day Teamsters strike at its large Riverside warehouse. These developments could increase reputational, labor and operating-cost concerns. 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.
See Also Five stocks we like better than Amazon.com Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors J.M. Smucker Stock’s Rally Has More Than Tariffs Behind It Wendy’s Rally Fades After Trian Steps Back: Was It Ever Real? GitLab’s Earnings Beat Just Gave Software Bulls a New SaaSpocalypse Test
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Granite Group Advisors LLC reduced its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 43.0% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 4,022 shares of the e-commerce giant’s stock after selling 3,033 shares during the quarter. Granite Group Advisors LLC’s holdings in Amazon.com were worth $959,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Brighton Jones LLC raised its holdings in Amazon.com by 10.9% during 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 buying an additional 397,007 shares during the period. Revolve Wealth Partners LLC boosted its stake in Amazon.com by 4.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 25,045 shares of the e-commerce giant’s stock worth $5,495,000 after buying an additional 986 shares during the period. Bank Pictet & Cie Europe AG boosted its stake in Amazon.com by 2.8% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,016,869 shares of the e-commerce giant’s stock worth $442,481,000 after buying an additional 54,987 shares during the period. Highview Capital Management LLC DE increased its position in Amazon.com by 5.5% during the fourth quarter. Highview Capital Management LLC DE now owns 28,975 shares of the e-commerce giant’s stock valued at $6,357,000 after acquiring an additional 1,518 shares during the last quarter. Finally, Liberty Square Wealth Partners LLC bought a new position in Amazon.com during the fourth quarter valued at $2,153,000. 72.20% of the stock is currently owned by hedge funds and other institutional investors.
Key Amazon.com News Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Institutional investors are signaling confidence in Amazon’s AI infrastructure opportunity. Stanley Druckenmiller increased Duquesne’s AMZN position more than tenfold, while Philippe Laffont’s Coatue expanded its stake 49%, reinforcing the thesis that AWS will benefit from sustained AI-computing demand. Stanley Druckenmiller Increased Amazon More Than 10-Fold and Opened an AMD Position Positive Sentiment: AWS growth, accelerating e-commerce revenue and expanding AI infrastructure investment remain key bullish factors. Analysts continue to see substantial upside, including a reiterated $350 price target, although Amazon’s heavy capital expenditures could pressure near-term cash returns. Amazon Retains Top Pick Status Positive Sentiment: Amazon’s new YouTube Shopping partnership allows creators to tag products and earn affiliate commissions, potentially expanding social-commerce traffic and advertising opportunities. Zoox’s expansion into additional U.S. markets also adds a longer-term mobility growth option. How Could Amazon Gain From New Creator Shopping Tools? Neutral Sentiment: The Justice Department requested beef-pricing data from Amazon and other major retailers as part of an investigation into meat-industry pricing. Amazon is not accused of wrongdoing in the reports, but the inquiry adds regulatory visibility. DOJ Expands Beef Price Investigation Negative Sentiment: The FTC and 22 states allege Amazon manipulated advertising auctions and overcharged roughly 1.2 million advertisers by more than $20 billion. Potential penalties, pricing changes and pressure on the high-margin advertising business are the most immediate downside risks. FTC Sues Amazon, Alleging It Overcharged Advertisers Negative Sentiment: Amazon is facing additional workforce friction, including planned corporate job cuts and a one-day Teamsters strike at its large Riverside warehouse. These developments could increase reputational, labor and operating-cost concerns. Wall Street Analyst Weigh In A number of equities analysts recently commented on AMZN shares. Mizuho set a $330.00 price target on shares of Amazon.com and gave the stock an “outperform” rating in a research note on Friday, July 31st. Telsey Advisory Group set a $335.00 price objective on shares of Amazon.com and gave the stock an “outperform” rating in a research report on Friday, July 31st. Zacks Research raised shares of Amazon.com from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 4th. Wolfe Research reissued an “outperform” rating and issued a $315.00 price objective on shares of Amazon.com in a research note on Friday, July 31st. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and set a $328.00 target price (up from $322.00) 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 issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $323.09. Read Our Latest Report on AMZN
Insiders Place Their Bets In other news, CFO Brian T. Olsavsky sold 6,172 shares of the business’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $260.31, for a total value of $1,606,633.32. Following the completion of the sale, the chief financial officer owned 109,207 shares in the company, valued at approximately $28,427,674.17. The trade was a 5.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the company’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $259.77, for a total value of $2,404,950.66. Following the sale, the senior vice president owned 41,190 shares of the company’s stock, valued at approximately $10,699,926.30. This represents a 18.35% decrease in their 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. In the last ninety days, insiders sold 70,589 shares of company stock worth $18,314,015. 8.90% of the stock is owned by company insiders.
Amazon.com Stock Performance Amazon.com stock opened at $254.98 on Thursday. 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 company has a market capitalization of $2.75 trillion, a PE ratio of 20.51, a P/E/G ratio of 1.97 and a beta of 1.44. The company has a 50 day moving average price of $252.99 and a 200-day moving average price of $241.79. Amazon.com, Inc. has a fifty-two week low of $196.00 and a fifty-two week high of $287.20.
Amazon.com (NASDAQ:AMZN – Get Free Report) last announced 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. The company had revenue of $200.61 billion for the quarter, compared to analysts’ expectations of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.Amazon.com’s revenue was up 19.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.68 earnings per share. As a group, equities analysts forecast that Amazon.com, Inc. will post 8.05 earnings per share for the current year.
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.
Read More Five stocks we like better than Amazon.com Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors J.M. Smucker Stock’s Rally Has More Than Tariffs Behind It Wendy’s Rally Fades After Trian Steps Back: Was It Ever Real? GitLab’s Earnings Beat Just Gave Software Bulls a New SaaSpocalypse Test 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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J. M. Brown & Associates Inc. purchased a new stake in shares of Amazon.com, Inc. (NASDAQ:AMZN) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 4,733 shares of the e-commerce giant’s stock, valued at approximately $1,128,000. Amazon.com makes up 0.6% of J. M. Brown & Associates Inc.’s investment portfolio, making the stock its 29th biggest holding.
Several other institutional investors and hedge funds have also made changes to their positions in AMZN. MilWealth Group LLC grew 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 valued at $41,000 after purchasing an additional 79 shares during the last quarter. Lifetime Wealth Management P.C. purchased a new position in shares of Amazon.com in the fourth quarter worth about $45,000. Elkhorn Partners Limited Partnership lifted its stake in 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 boosted its holdings in Amazon.com by 95.6% in 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. grew its position in 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 currently owned by institutional investors and hedge funds.
Insider Activity In other Amazon.com news, CEO Andrew R. Jassy sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $5,180,200.00. Following the sale, the chief executive officer owned 2,235,766 shares of the company’s stock, valued at $579,085,751.66. The trade was a 0.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $259.77, for a total value of $2,404,950.66. Following the transaction, the senior vice president directly owned 41,190 shares in the company, valued at approximately $10,699,926.30. The trade was a 18.35% 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 70,589 shares of company stock valued at $18,314,015 in the last quarter. Insiders own 8.90% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research analysts have issued reports on the company. Barclays reissued an “overweight” rating and issued a $365.00 price target (up from $330.00) on shares of Amazon.com in a report on Friday, July 31st. Phillip Securities lowered shares of Amazon.com from a “strong-buy” rating to a “moderate buy” rating in a report on Monday, August 3rd. Wedbush boosted their target price on shares of Amazon.com from $293.00 to $310.00 and gave the company an “outperform” rating in a research note on Friday, July 31st. Raymond James Financial restated an “outperform” rating and set a $390.00 price target (up from $280.00) on shares of Amazon.com in a research report on Friday, July 31st. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and issued a $328.00 price objective (up from $322.00) 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 given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $323.09. Read Our Latest Stock Report on AMZN
Amazon.com Stock Up 0.0% Shares of NASDAQ AMZN opened at $254.98 on Thursday. The firm has a market cap of $2.75 trillion, a price-to-earnings ratio of 20.51, a price-to-earnings-growth ratio of 1.97 and a beta of 1.44. The company’s 50-day simple moving average is $252.99 and its 200-day simple moving average is $241.79. 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 52-week low of $196.00 and a 52-week 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. 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 analyst estimates of $197.03 billion. During the same period last year, the company posted $1.68 EPS. Amazon.com’s quarterly revenue was up 19.6% compared to the same quarter last year. Equities analysts predict that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.
Trending Headlines about Amazon.com Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Institutional investors are signaling confidence in Amazon’s AI infrastructure opportunity. Stanley Druckenmiller increased Duquesne’s AMZN position more than tenfold, while Philippe Laffont’s Coatue expanded its stake 49%, reinforcing the thesis that AWS will benefit from sustained AI-computing demand. Stanley Druckenmiller Increased Amazon More Than 10-Fold and Opened an AMD Position Positive Sentiment: AWS growth, accelerating e-commerce revenue and expanding AI infrastructure investment remain key bullish factors. Analysts continue to see substantial upside, including a reiterated $350 price target, although Amazon’s heavy capital expenditures could pressure near-term cash returns. Amazon Retains Top Pick Status Positive Sentiment: Amazon’s new YouTube Shopping partnership allows creators to tag products and earn affiliate commissions, potentially expanding social-commerce traffic and advertising opportunities. Zoox’s expansion into additional U.S. markets also adds a longer-term mobility growth option. How Could Amazon Gain From New Creator Shopping Tools? Neutral Sentiment: The Justice Department requested beef-pricing data from Amazon and other major retailers as part of an investigation into meat-industry pricing. Amazon is not accused of wrongdoing in the reports, but the inquiry adds regulatory visibility. DOJ Expands Beef Price Investigation Negative Sentiment: The FTC and 22 states allege Amazon manipulated advertising auctions and overcharged roughly 1.2 million advertisers by more than $20 billion. Potential penalties, pricing changes and pressure on the high-margin advertising business are the most immediate downside risks. FTC Sues Amazon, Alleging It Overcharged Advertisers Negative Sentiment: Amazon is facing additional workforce friction, including planned corporate job cuts and a one-day Teamsters strike at its large Riverside warehouse. These developments could increase reputational, labor and operating-cost concerns. 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.
Recommended Stories Five stocks we like better than Amazon.com Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors J.M. Smucker Stock’s Rally Has More Than Tariffs Behind It Wendy’s Rally Fades After Trian Steps Back: Was It Ever Real? GitLab’s Earnings Beat Just Gave Software Bulls a New SaaSpocalypse Test 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.
Family Investment Center Inc. increased its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 205.7% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,106 shares of the e-commerce giant’s stock after purchasing an additional 2,763 shares during the quarter. Family Investment Center Inc.’s holdings in Amazon.com were worth $979,000 as of its most recent filing with the Securities and Exchange Commission.
Other institutional investors and hedge funds have also recently bought and sold shares of the company. Financial Partners Group Inc grew its holdings in shares of Amazon.com by 0.4% during the second quarter. Financial Partners Group Inc now owns 69,069 shares of the e-commerce giant’s stock valued at $16,462,000 after buying an additional 289 shares in the last quarter. Cornerstone Wealth Management LLC lifted its stake in shares of Amazon.com by 0.8% in the 2nd quarter. Cornerstone Wealth Management LLC now owns 101,228 shares of the e-commerce giant’s stock valued at $24,127,000 after purchasing an additional 790 shares during the last quarter. McElhenny Sheffield Capital Management LLC boosted its stake in shares of Amazon.com by 22.7% during the 2nd quarter. McElhenny Sheffield Capital Management LLC now owns 4,517 shares of the e-commerce giant’s stock worth $1,077,000 after acquiring an additional 835 shares in the last quarter. Cooper Capital Advisors LLC boosted its position in Amazon.com by 2.0% during the second quarter. Cooper Capital Advisors LLC now owns 29,425 shares of the e-commerce giant’s stock worth $7,013,000 after purchasing an additional 584 shares during the period. Finally, Steigerwald Gordon & Koch Inc. boosted its holdings in shares of Amazon.com by 1.0% during the 2nd quarter. Steigerwald Gordon & Koch Inc. now owns 13,216 shares of the e-commerce giant’s stock worth $3,150,000 after buying an additional 128 shares during the period. 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: Institutional investors are signaling confidence in Amazon’s AI infrastructure opportunity. Stanley Druckenmiller increased Duquesne’s AMZN position more than tenfold, while Philippe Laffont’s Coatue expanded its stake 49%, reinforcing the thesis that AWS will benefit from sustained AI-computing demand. Stanley Druckenmiller Increased Amazon More Than 10-Fold and Opened an AMD Position Positive Sentiment: AWS growth, accelerating e-commerce revenue and expanding AI infrastructure investment remain key bullish factors. Analysts continue to see substantial upside, including a reiterated $350 price target, although Amazon’s heavy capital expenditures could pressure near-term cash returns. Amazon Retains Top Pick Status Positive Sentiment: Amazon’s new YouTube Shopping partnership allows creators to tag products and earn affiliate commissions, potentially expanding social-commerce traffic and advertising opportunities. Zoox’s expansion into additional U.S. markets also adds a longer-term mobility growth option. How Could Amazon Gain From New Creator Shopping Tools? Neutral Sentiment: The Justice Department requested beef-pricing data from Amazon and other major retailers as part of an investigation into meat-industry pricing. Amazon is not accused of wrongdoing in the reports, but the inquiry adds regulatory visibility. DOJ Expands Beef Price Investigation Negative Sentiment: The FTC and 22 states allege Amazon manipulated advertising auctions and overcharged roughly 1.2 million advertisers by more than $20 billion. Potential penalties, pricing changes and pressure on the high-margin advertising business are the most immediate downside risks. FTC Sues Amazon, Alleging It Overcharged Advertisers Negative Sentiment: Amazon is facing additional workforce friction, including planned corporate job cuts and a one-day Teamsters strike at its large Riverside warehouse. These developments could increase reputational, labor and operating-cost concerns. Amazon.com Price Performance Shares of Amazon.com stock opened at $254.98 on Thursday. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The stock has a market capitalization of $2.75 trillion, a price-to-earnings ratio of 20.51, a P/E/G ratio of 1.97 and a beta of 1.44. Amazon.com, Inc. has a 1-year low of $196.00 and a 1-year high of $287.20. The firm’s 50-day moving average price is $252.99 and its two-hundred day moving average price is $241.79. Amazon.com (NASDAQ:AMZN – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (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 during the quarter, compared to analysts’ expectations of $197.03 billion. During the same period in the previous year, the business posted $1.68 earnings per share. The firm’s revenue for the quarter was up 19.6% compared to the same quarter last year. On average, equities analysts predict that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.
Insider Activity In related news, CEO Andrew R. Jassy sold 20,000 shares of the company’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $5,180,200.00. Following the completion of the sale, the chief executive officer owned 2,235,766 shares in the company, valued at approximately $579,085,751.66. This represents a 0.89% 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, CFO Brian T. Olsavsky sold 6,172 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $260.31, for a total transaction of $1,606,633.32. Following the completion of the sale, the chief financial officer owned 109,207 shares in the company, valued at $28,427,674.17. This represents a 5.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 70,589 shares of company stock worth $18,314,015. Corporate insiders own 8.90% of the company’s stock.
Analyst Ratings Changes A number of research analysts have recently commented on the company. Jefferies Financial Group reiterated a “buy” rating on shares of Amazon.com in a report on Thursday, June 18th. Oppenheimer reissued an “outperform” rating on shares of Amazon.com in a report on Friday, July 31st. Telsey Advisory Group set a $335.00 price objective on shares of Amazon.com and gave the stock an “outperform” rating in a report on Friday, July 31st. Evercore set a $355.00 price objective on shares of Amazon.com and gave the company an “outperform” rating in a research report on Friday, August 28th. Finally, Sanford C. Bernstein reiterated an “outperform” rating and issued a $320.00 target price (up from $315.00) on shares of Amazon.com in a research note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have issued 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 price target of $323.09.
Read Our Latest Analysis 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.
Featured Stories Five stocks we like better than Amazon.com Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors J.M. Smucker Stock’s Rally Has More Than Tariffs Behind It Wendy’s Rally Fades After Trian Steps Back: Was It Ever Real? GitLab’s Earnings Beat Just Gave Software Bulls a New SaaSpocalypse Test Want to see what other hedge funds are holding AMZN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Amazon.com, Inc. (NASDAQ:AMZN – Free Report).
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Amazon projects it's on track to deliver nearly 90% of its own US packages By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
An Amazon delivery van. Bloomberg/Getty Images Amazon's own delivery network is handling a rapidly growing share of its US packages, with a recent internal forecast projecting that figure could approach nine out of every 10 packages by 2029.
Amazon's latest preliminary forecast puts its own delivery network at 86.3% of its US packages in 2027, 87.4% in 2028, and 88.7% in 2029, according to an internal planning document from late July that Business Insider reviewed.
The shift is happening faster than Amazon previously projected. Its prior estimates put first-party delivery at 83.8% of US packages in 2027 and 85% in 2028, according to the document.
In 2023, the company said it delivered over two-thirds of its own packages in the US, the last time it publicly disclosed that figure.
Amazon's latest plan projects that its own delivery network would handle roughly 12.2 billion US packages in 2027, growing to 15.8 billion in 2029.
The previously unreported figures quantify how profoundly Amazon's relationship with the traditional parcel industry has changed. Over the past decade, Amazon has transformed itself from one of the biggest customers of carriers like UPS and the US Postal Service into a delivery giant in its own right.
Some outside carriers have also pulled back or changed the capacity they provide. At the same time, greater control over delivery has become increasingly important to Amazon's retail business. CEO Andy Jassy has said faster delivery leads customers to consider Amazon for more of their purchases.
An Amazon spokesperson told Business Insider that the projections shouldn't be interpreted as finalized plans.
"We're always planning and forecasting across our operations, and we regularly produce numerous versions and updates of planning documents," the spokesperson said. "Any internal projections are preliminary, subject to significant revision, and should not be treated as definitive or as representing finalized plans."
Amazon absorbs the growthAmazon's forecast puts almost all of its projected package growth through its own network.
Under the plan, total US package volume grows from roughly 14.1 billion in 2027 to 17.8 billion in 2029, an increase of about 3.7 billion packages. Over the same period, volume allocated to outside carriers barely changes, hovering around 2 billion packages.
Amazon's first-party network doesn't mean Amazon's employees make all those deliveries. Much of its last-mile network relies on independent Delivery Service Partners that use Amazon-branded vans, as well as Amazon Flex contractors who deliver packages in their own vehicles.
Amazon's projections expect some of the fastest growth to come from its Sub Same-Day network, which stores products closer to customers for delivery within hours. Its share of Amazon's first-party package volume is projected to grow from 17.1% in 2027 to 21.3% in 2029.
The projections indicate that Amazon's rural network will account for just over 11% of first-party package volume. The company has committed more than $4 billion to triple the size of that network by the end of 2026.
Amazon is also trying to make its delivery infrastructure faster and more productive.
Business Insider previously reported that Amazon is testing all-day delivery with faster shipping windows and exploring Walmart-sized stores under Project Kobe that could serve as pickup points and local delivery hubs. It's also developing Project Tetromino, a highly automated delivery station that could process packages more quickly.
Amazon projects a shrinking role for traditional carriersAs Amazon's own delivery network grows, it expects traditional carriers to handle a smaller share of its packages.
USPS's share is declining in Amazon's forecast. The company's prior plan allocated roughly 13% of US packages to the Postal Service in 2027, compared with about 10% in the newer forecast. The latest plan has that share falling to 8% by 2029.
The decline comes after a tense round of negotiations with USPS over a new delivery contract. The companies reached an agreement earlier this year.
The new USPS contract, signed in April, establishes a minimum of 1.27 billion packages, 19% below the previous contract's minimum, according to the latest document on Amazon's projections. The preliminary plan allocates about 1.4 billion packages annually to USPS, though the final amount will depend partly on the capacity and coverage of Amazon's own network.
UPS, meanwhile, decided to cut the volume it handles for Amazon by more than half by the second half of 2026, citing lower profitability. Amazon's preliminary forecast has UPS handling 1.8% of its US packages in 2027 and falling to 1.4% by 2029, or roughly 250 million packages a year.
FedEx plays a smaller role, accounting for about 0.4% of Amazon's US package volume. Amazon revived its relationship with FedEx last year after the companies cut ties in 2019.
Amazon isn't cutting traditional carriers out entirely. The internal document says the USPS contract expires in 2029 and assumes it will be renewed "given the mutual dependency between Amazon and USPS."
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Eugene Kim You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail and logistics operations to AWS, Alexa, and its internal culture.Previously, he worked at CNBC, Fortune Magazine Korea, and Japan's Yomiuri Shimbun. He holds degrees from NYU and Columbia University’s Graduate School of Journalism.In 2022, Eugene reported on internal documents indicating that Amazon allegedly used deceptive tactics to enroll customers in Prime and made cancellation difficult. The Federal Trade Commission sued Amazon the following year, citing his reporting. The case ended in a record $2.5 billion settlement in 2025.His work has received multiple honors, including the SF Press Club’s Bay Area Journalism Award and SPJ NorCal’s Excellence in Journalism Award.Eugene lives in the Bay Area. Contact him via email at [email protected], or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.
Amazon Logistics E-Commerce More Amazon Prime Delivery Exclusive USPS UPS
Amazon (AMZN +0.02%) is one of the best-known companies in the world. Very few people in the U.S. have not ordered anything from Amazon, and many use it as a primary source for goods. It has an incredible delivery infrastructure. But none of these are great reasons to buy Amazon stock.
Instead, I think the best bet for Amazon's future success as an investment comes from Amazon Web Services (AWS), its cloud computing division. There are several reasons to like AWS, and I think it's by far the biggest growth driver Amazon has now.
Image source: The Motley Fool.
What is AWS? AWS is a pretty simple business: Amazon builds excess computing capacity, then rents it out to clients at a profit. That's a simple explanation for a complex business, but it has been key to Amazon's profitability in recent years.
Commerce businesses have notoriously razor-thin margins. This makes creating a highly profitable business in this segment difficult, although Amazon has done as good a job as any in this space. In the second quarter, Amazon's North American commerce division generated $116.2 billion in revenue and converted $9.1 billion of that into operating income. Good enough for a 7.8% operating margin.
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AWS blows that figure out of the water. It's a far more profitable business, and in Q2 it generated $42.2 billion in revenue but converted $16.6 billion of that into operating income for a margin of 39.3%. So despite being a smaller segment by revenue, AWS generates far more profits. In fact, AWS generated about 60% of operating income in Q2 despite making up only 21% of sales.
With the AI build-out going on at full speed, Amazon is heavily investing in AWS computing capacity, spending $220 billion on capital expenditures in 2026. This will lead to faster AWS growth, which will make AWS a greater part of Amazon's business.
AWS grew at 37% in Q2, versus North American commerce's 16% and International's 15%, so this trend is already evident. When the most profitable business segment is growing the fastest, it also helps boost margins faster. This is why Amazon's operating margins have dramatically increased over the past few years.
AMZN Operating Margin (TTM) data by YCharts
This trend will likely continue into the future, and I think that makes Amazon stock a top one to buy, as the Amazon of three years from now will look far different and more compute-centric than the Amazon of today.
Choosing between Amazon.com (AMZN +0.02%) and Uber Technologies (UBER +1.61%) requires balancing cloud computing dominance against the world's largest mobility platform. Which of these tech giants offers the better path for investors today?
Amazon leverages its massive logistics network and cloud services to dominate digital commerce globally. Uber focuses on connecting riders and diners through its asset-light platform. While both companies have evolved into diversified powerhouses, their paths to future growth and profitability profiles differ significantly for those looking at the consumer discretionary sector.
Amazon is a dominant force among tech stocks that serves a diverse group including consumers, sellers, and enterprises. The company operates through its massive global fulfillment network and its high-margin cloud division, Amazon Web Services (AWS). This business model creates an ecosystem where retail sales support advertising growth and cloud infrastructure provides substantial cash flow.
In its 2025 fiscal year (FY), revenue reached $716.9 billion, representing growth of 12.4% compared to the prior year. The company reported net income of $77.7 billion, which resulted in a net margin of 10.8%. This net margin represents the percentage of total sales remaining after all operating and non-operating expenses are paid.
As of its December 2025 balance sheet, the debt-to-equity ratio is 0.4x. This ratio measures total debt against shareholder equity, where a lower number suggests a company uses less debt to finance its assets. The current ratio, which compares short-term assets to short-term liabilities, stands at 1.1x, while free cash flow reached $7.7 billion.
The case for Uber TechnologiesUber operates a global platform that connects millions of consumers with mobility, delivery, and logistics providers. The company relies on powerful network effects where more users attract more drivers and merchants, improving the service for everyone. Uber is currently expanding its footprint in global food and grocery markets through its agreement to acquire Delivery Hero.
In FY 2025, revenue reached $52.0 billion, which indicates growth of 18.3% over the previous fiscal period. Net income for the year was $10.1 billion, leading to a net margin of 19.3%. These figures reflect the company's transition from a high-growth start-up into a profitable global infrastructure provider.
According to its December 2025 balance sheet, Uber carries a debt-to-equity ratio of 0.4x. The company maintains a current ratio of 1.1x, suggesting it has enough short-term assets to cover its immediate obligations. Free cash flow for the period was $9.8 billion, representing the cash remaining after the company pays for its operations and equipment.
Risk profile comparisonAmazon faces intense global competition in retail and cloud computing from well-funded technology rivals. The company deals with complex legal challenges, including antitrust litigation regarding its delivery contractor models and ongoing patent infringement lawsuits from companies like Universal Electronics. International operations also involve significant geopolitical risks, particularly in the People's Republic of China and India, where trade restrictions can impact business sustainability.
Uber's primary risk remains the classification of drivers as independent contractors, a model facing frequent legislative challenges and litigation. The company competes against heavily capitalized rivals like Lyft (LYFT +3.46%) and DoorDash (DASH +0.26%) for market share. Additionally, the company faces potential disruption if partners exit its ecosystem, as seen with recent signals from Alphabet (GOOGL +0.63%), which is ending its autonomous vehicle collaboration through its Waymo subsidiary.
Valuation comparisonUber currently offers a lower P/S ratio and a more attractive Forward P/E based on future earnings estimates.
MetricAmazon.comUber TechnologiesForward P/E23.9x17.2xP/S ratio3.6x2.8xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?Evaluating e-commerce giant Amazon against ride-hailing and delivery platform provider Uber seems an odd comparison until you realize both are pursuing the artificial intelligence boom through AI-controlled self-driving vehicles.
In the second quarter, Amazon's autonomous vehicle (AV) business, Zoox, received federal permission to begin charging for rides, opening the path to commercializing its nascent operation. Uber, meanwhile, has been partnering with companies around the world to become the central platform for consumers to request AV rides.
This does not mean they are rivals. In fact, Amazon partnered with Uber in a multi-year deal to bring Zoox into Uber's ecosystem, starting with Las Vegas this year and Los Angeles in 2027.
Uber was the first to bring AV rides to the United Kingdom this September. It also partnered with Baidu to spin up the service in the United Arab Emirates. All of this is looking toward the future as self-driving cars eventually replace human drivers. Uber's position as a global leader in AV ride hailing combined with its very reasonable share price valuation makes it the better stock to buy right now.
That said, if you don't own shares of Amazon, it's a company worth adding to your portfolio. Its AWS business delivered a 37% year-over-year increase in sales to $42.2 billion in Q2, its fastest growth in 18 quarters, driven by its AI offerings.
Amazon (AMZN +0.02%) stock has rebounded this year, and it's up roughly the same as the S&P 500. However, it's trading at it lowest P/E ratio ever, at only 21 times trailing-12-month earnings.
Why is the market pricing it so low? Here's my honest answer.
Does AI cost too much? Amazon's stock started trailing the market after it announced that it was increasing its capital expenditures (capex) last year. Spending continues to rise, and management expects to spend $220 billion in 2026 alone.
Image source: Amazon.
The market has gotten on board with the spending after seeing some early results. In the 2026 second quarter, for example, revenue from cloud business Amazon Web Services (AWS) increased nearly 37% year over year, the highest level in 18 quarters.
CEO Andy Jassy believes that over time, AWS, which houses the AI operations, will become a trillion-dollar business. "As we get a few years out and the revenue growth outpaces the incremental capex growth, which will happen at some point," he said, "the resulting revenue, free cash flow, and return on invested capital is very compelling."
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However, the metric to notice is free cash flow, because that's what's still bothering the market. Free cash flow has dipped into negative territory over the past few years as Amazon spends like never before.
Data by YCharts.
Amazon stock may be cheap on a price-to-earnings basis, but it has become extremely expensive on a price-to-free-cash-flow basis in this situation.
Despite its excellent performance and otherwise positive views on its future opportunity, the stock may not soar too high until it gets back to reliable positive free cash flow.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
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Amazon changed the subject lines of its order emails to be more generic, creating a problem for some customers. Bloomberg/Getty Images Amazon customers are taking aim at the e-commerce giant over its email etiquette.
Earlier this summer, some Amazon customers started seeing generic descriptions instead of exact ones in receipts and other order-related emails. An engine air filter for a car, for example, might now appear in the emails as an "automotive item" and require the reader to check Amazon's website or app for more details about the order.
It's a change that has drawn ire from some Amazon shoppers. Amazon made a similar change to its emails in 2020, but eventually rolled it back.
One Reddit post, for instance, has attracted 450 comments over the last two months, including many from Amazon users who take issue with the new system.
"I just noticed this today and I HATE IT," one commenter wrote. "I order things both for work and home, on two different cards. Now I have to click through to see which is which when things ship? Lame."
Amazon cuts 14,000 corporate jobs amid AI restructuring
Other posters pointed to reasons that the change mattered to them, from managing businesses to budgeting apps that pulled the product information from Amazon's emails.
Amazon made the change for privacy reasons, the company told Business Insider. It's also designed to "direct customers to our app and website for the latest information on their orders," a spokesperson said.
The change "reduces customer information shared outside the Amazon app and website to further improve customer privacy," the spokesperson said.
Some customers have pointed to other possible reasons for the change.
Information about what customers buy online has long been a treasure trove for advertisers. It's also become useful for training AI. Last month, for instance, Google agreed to pay $10 million for anonymized employee data, such as work emails and messages, from Spirit Airlines — information that could be valuable to the search giant, experts told Business Insider.
"I'm wondering if this is because they don't want AI tools to be able to easily scrape sales data?" wrote one Reddit user on a post about Amazon's change that attracted 162 comments.
The Amazon spokesperson said the change was intended to "help protect customer information" when asked whether the company was trying to limit what third parties could scrape from its emails.
One poster on a Github forum posted a message from an Amazon customer service representative, who said that the change was meant "to minimize the risk of package theft by not disclosing the specific contents of your shipment in publicly visible communications."
The posted message, which Business Insider verified, also said that the less-informative emails "maintain confidentiality for gifts, surprises, or personal items you may not want others in your household to see."
An Amazon spokesperson declined to comment on the contents of the message.
Do you have a story idea about Amazon's email changes? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.
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Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.
Amazon is slashing around 150 positions at its Northern California offices.
A total of 70 jobs at the e-commerce giant’s Sunnyvale office and 78 positions at the company’s Bush Street office in San Francisco will be eliminated, according to an August 28 notice filed with the Employment Development Department.
All the affected employees are slated to be out by October 20.
Amazon employees being laid off in the latest round of job cuts in the Bay Area will have October 20 as their final day. Bloomberg via Getty Images Since October 2025, Amazon has cut roughly 30,000 corporate jobs through two major rounds of layoffs as part of CEO Andy Jassy‘s effort to flatten management structures and reduce bureaucracy.
In June of this year, Amazon engineers had accused the tech giant of pouring billions into AI-fueled data centers while slashing tens of thousands of white-collar jobs.
“It’s been reported that this year, Amazon is spending $200 billion on capital, with most of it going to data centers and AI,” Patrick Schloesser, a software engineer at Amazon Web Services, told councilmembers at a heated Seattle City Council hearing in June.
Some 135 corporate Amazon employees who worked at Amazon offices in New York City received pink slips in January 2026, according to a state Department of Labor filing. Another 165 Amazon workers in New York were axed.
Amazon is allegedly spending $200 billion on data centers and AI. San Francisco Chronicle via Getty Images
The job cuts primarily target corporate and management ranks by trimming management positions by 20%. Getty Images Meanwhile, California-based Uber also announced a major organizational restructuring Wednesday that included the elimination of approximately 3,300 corporate roles — representing roughly 10% of its 36,600-person global staff.
The job cuts primarily target corporate and management ranks by trimming management positions by 20%, cutting “micro-teams” with few direct reports, and ending full remote work for most employees in favor of primary operational hubs.
Drivers and couriers on the platform are classified as independent contractors rather than corporate employees and are entirely unaffected by the layoffs.
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Amazon announced Wednesday (Sept. 2) that it is giving consumers a new way to fight back against one of scammers' most effective weapons, impersonation.
Apollon Wealth Management LLC boosted its position in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 26.3% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 684,960 shares of the e-commerce giant’s stock after buying an additional 142,793 shares during the quarter. Amazon.com makes up about 2.0% of Apollon Wealth Management LLC’s holdings, making the stock its 11th biggest holding. Apollon Wealth Management LLC’s holdings in Amazon.com were worth $163,253,000 at the end of the most recent reporting period.
Other institutional investors have also added to or reduced their stakes in the company. Trust Asset Management LLC grew its stake in shares of Amazon.com by 3.3% in the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock worth $26,000 after purchasing an additional 3,414 shares during the last quarter. MilWealth Group LLC raised its position in Amazon.com by 79.0% during the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after purchasing an additional 79 shares during the last quarter. Lifetime Wealth Management P.C. purchased a new stake in Amazon.com in the 4th quarter worth approximately $45,000. Elkhorn Partners Limited Partnership lifted its holdings in 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 buying an additional 180 shares during the period. Finally, Fairway Wealth LLC grew its position 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 buying an additional 108 shares during the last quarter. Hedge funds and other institutional investors own 72.20% of the company’s stock.
Insider Activity at Amazon.com In other Amazon.com news, CEO Matthew S. Garman sold 14,541 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.06, for a total value of $3,766,991.46. Following the completion of the transaction, the chief executive officer owned 17,794 shares of the company’s stock, valued at approximately $4,609,713.64. The trade was a 44.97% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,343 shares of the company’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $606,860.43. Following the transaction, the vice president owned 119,780 shares in the company, valued at $31,024,217.80. This represents a 1.92% 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 70,589 shares of company stock valued at $18,314,015 over the last three months. 8.90% of the stock is owned by insiders.
Trending Headlines about Amazon.com Here are the key news stories impacting Amazon.com this week: Positive Sentiment: AWS and AI expansion remain key catalysts. Amazon’s planned $5.3 billion investment in a Saudi Arabia cloud region, expanded access to OpenAI, Meta, and Anthropic models through AWS GovCloud, and a deeper partnership with Nvidia—including two million additional GPUs—could strengthen AWS’s position in government and enterprise AI. AMZN’s Saudi Arabia investment Positive Sentiment: New commerce initiatives could broaden monetization. YouTube’s integration of Amazon products into its Shopping Affiliate Program may increase product discovery and sales, while Alexa’s personalized shopping alerts and Amazon Pharmacy’s Solv integration could improve customer engagement and conversion. YouTube Amazon partnership Positive Sentiment: Analysts remain constructive. Citi reiterated a Buy rating and a $350 price target despite the legal risks, while recent results showed $200.6 billion in revenue and substantially stronger-than-expected earnings, with AWS revenue reportedly growing 36.7% year over year. Analyst reiterates Amazon Buy rating Neutral Sentiment: Zoox is expanding its robotaxi efforts. Amazon’s autonomous-vehicle unit plans testing in Houston and San Diego, but the initiative is still early-stage and has limited near-term earnings impact. Zoox and Waymo robotaxi expansion Negative Sentiment: The FTC lawsuit is driving the immediate pressure. The FTC and 22 states allege Amazon manipulated advertising auctions and overcharged approximately 1.2 million advertisers by more than $20 billion. Potential penalties, refunds, operational changes, and limits on ad-pricing practices threaten a rapidly growing, high-margin business. Amazon denies the allegations. FTC lawsuit against Amazon Negative Sentiment: AI spending and shareholder concerns remain overhangs. Investors are weighing the capital required for Amazon’s AI infrastructure against future returns, while reports of an institutional investor trimming its stake add near-term selling pressure. Amazon.com Stock Performance AMZN stock opened at $254.92 on Wednesday. The stock’s 50 day simple moving average is $252.57 and its 200 day simple moving average is $241.40. 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, Inc. has a 12-month low of $196.00 and a 12-month high of $287.20. The stock has a market capitalization of $2.75 trillion, a PE ratio of 20.51, a price-to-earnings-growth ratio of 2.00 and a beta of 1.44.
Amazon.com (NASDAQ:AMZN – Get Free Report) last posted its earnings results 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 return on equity of 18.00% and a net margin of 17.44%.The business had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. During the same quarter last year, the company earned $1.68 EPS. The company’s quarterly revenue was up 19.6% compared to the same quarter last year. As a group, research analysts forecast that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.
Wall Street Analyst Weigh In AMZN has been the subject of a number of research analyst reports. Citizens Jmp reaffirmed a “market outperform” rating and issued a $315.00 price target on shares of Amazon.com in a research note on Friday, July 31st. BMO Capital Markets restated an “outperform” rating and issued a $360.00 price objective (up from $355.00) on shares of Amazon.com in a report on Tuesday, July 28th. 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. KeyCorp raised 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. Finally, DA Davidson reaffirmed a “neutral” rating and set a $250.00 target price 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 given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $323.09.
Check Out Our Latest Research 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.
Featured Stories Five stocks we like better than Amazon.com Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery 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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Asset Advisors Investment Management LLC lifted its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 2.7% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 119,413 shares of the e-commerce giant’s stock after purchasing an additional 3,175 shares during the period. Amazon.com makes up 2.6% of Asset Advisors Investment Management LLC’s investment portfolio, making the stock its 9th largest holding. Asset Advisors Investment Management LLC’s holdings in Amazon.com were worth $28,461,000 as of its most recent filing with the Securities & Exchange Commission.
Several other hedge funds have also recently bought and sold shares of AMZN. Red Crane Wealth Management LLC increased its stake in shares of Amazon.com by 2.3% during the 1st quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant’s stock worth $346,000 after purchasing an additional 38 shares in the last quarter. Robinson Smith Wealth Advisors LLC lifted its stake 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 buying an additional 40 shares in the last quarter. Sfam LLC lifted its stake in Amazon.com by 3.4% in the 1st 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 in the last quarter. Measured Risk Portfolios Inc. grew its holdings in Amazon.com by 3.4% during the 1st quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant’s stock valued at $251,000 after buying an additional 40 shares during the last quarter. Finally, CoreFirst Bank & Trust lifted its position in shares of Amazon.com by 1.1% in the first quarter. CoreFirst Bank & Trust now owns 3,620 shares of the e-commerce giant’s stock valued at $754,000 after acquiring an additional 40 shares in the last quarter. 72.20% of the stock is owned by hedge funds and other institutional investors.
Insider Transactions at Amazon.com In related news, CEO Douglas J. Herrington sold 6,362 shares of Amazon.com stock in a transaction on Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $1,647,821.62. Following the completion of the sale, the chief executive officer owned 476,681 shares in the company, valued at approximately $123,465,145.81. The trade was a 1.32% decrease in their ownership of the stock. 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, CFO Brian T. Olsavsky sold 6,172 shares of the company’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $260.31, for a total transaction of $1,606,633.32. Following the completion of the sale, the chief financial officer directly owned 109,207 shares in the company, valued at $28,427,674.17. This represents a 5.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 70,589 shares of company stock valued at $18,314,015 in the last three months. 8.90% of the stock is currently owned by company insiders.
Amazon.com Price Performance AMZN opened at $254.92 on Wednesday. The company has a 50 day moving average of $252.57 and a two-hundred day moving average of $241.40. 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 52-week low of $196.00 and a 52-week high of $287.20. The company has a market cap of $2.75 trillion, a P/E ratio of 20.51, a P/E/G ratio of 2.00 and a beta of 1.44. Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.82 by $3.93. The company had revenue of $200.61 billion during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same quarter last year, the company earned $1.68 earnings per share. On average, analysts expect that Amazon.com, Inc. will post 8.05 earnings per share for the current year.
Analysts Set New Price Targets A number of research firms recently commented on AMZN. Bank of America lifted their price objective on Amazon.com from $310.00 to $320.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Needham & Company LLC restated a “buy” rating and issued a $300.00 target price on shares of Amazon.com in a report on Friday, July 31st. HSBC restated a “buy” rating and issued a $310.00 target price on shares of Amazon.com in a report on Friday, July 31st. DA Davidson reiterated a “neutral” rating and set a $250.00 price target on shares of Amazon.com in a report on Friday, July 31st. Finally, Raymond James Financial reissued an “outperform” rating and set a $390.00 price objective (up from $280.00) 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 issued a Hold rating to the company. According to data from MarketBeat, Amazon.com has an average rating of “Moderate Buy” and a consensus price target of $323.09.
View Our Latest Stock Report on Amazon.com
Trending Headlines about Amazon.com Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AWS and AI expansion remain key catalysts. Amazon’s planned $5.3 billion investment in a Saudi Arabia cloud region, expanded access to OpenAI, Meta, and Anthropic models through AWS GovCloud, and a deeper partnership with Nvidia—including two million additional GPUs—could strengthen AWS’s position in government and enterprise AI. AMZN’s Saudi Arabia investment Positive Sentiment: New commerce initiatives could broaden monetization. YouTube’s integration of Amazon products into its Shopping Affiliate Program may increase product discovery and sales, while Alexa’s personalized shopping alerts and Amazon Pharmacy’s Solv integration could improve customer engagement and conversion. YouTube Amazon partnership Positive Sentiment: Analysts remain constructive. Citi reiterated a Buy rating and a $350 price target despite the legal risks, while recent results showed $200.6 billion in revenue and substantially stronger-than-expected earnings, with AWS revenue reportedly growing 36.7% year over year. Analyst reiterates Amazon Buy rating Neutral Sentiment: Zoox is expanding its robotaxi efforts. Amazon’s autonomous-vehicle unit plans testing in Houston and San Diego, but the initiative is still early-stage and has limited near-term earnings impact. Zoox and Waymo robotaxi expansion Negative Sentiment: The FTC lawsuit is driving the immediate pressure. The FTC and 22 states allege Amazon manipulated advertising auctions and overcharged approximately 1.2 million advertisers by more than $20 billion. Potential penalties, refunds, operational changes, and limits on ad-pricing practices threaten a rapidly growing, high-margin business. Amazon denies the allegations. FTC lawsuit against Amazon Negative Sentiment: AI spending and shareholder concerns remain overhangs. Investors are weighing the capital required for Amazon’s AI infrastructure against future returns, while reports of an institutional investor trimming its stake add near-term selling pressure. 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 Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery 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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Foundry Financial Group Inc. lifted its holdings in shares of Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 85.3% in the second quarter, according to its most recent filing with the SEC. The firm owned 4,513 shares of the e-commerce giant’s stock after acquiring an additional 2,077 shares during the period. Amazon.com makes up about 0.5% of Foundry Financial Group Inc.’s investment portfolio, making the stock its 19th biggest position. Foundry Financial Group Inc.’s holdings in Amazon.com were worth $1,076,000 at the end of the most recent quarter.
Other institutional investors have also bought and sold shares of the company. Trust Asset Management LLC lifted its position in shares of Amazon.com by 3.3% during the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock worth $26,000 after purchasing an additional 3,414 shares in the last quarter. MilWealth Group LLC lifted its stake in Amazon.com by 79.0% in the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after buying an additional 79 shares during the period. Lifetime Wealth Management P.C. bought a new stake in Amazon.com in the fourth quarter valued at approximately $45,000. Elkhorn Partners Limited Partnership raised its stake in Amazon.com by 900.0% during the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock worth $46,000 after buying an additional 180 shares during the period. Finally, Fairway Wealth LLC lifted 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 valued at $51,000 after purchasing an additional 108 shares in the last quarter. Institutional investors and hedge funds own 72.20% of the company’s stock.
Insider Transactions at Amazon.com In related news, VP Shelley Reynolds sold 2,343 shares of the firm’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $606,860.43. Following the transaction, the vice president directly owned 119,780 shares of the company’s stock, valued at $31,024,217.80. This trade represents a 1.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the business’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the transaction, the senior vice president owned 41,190 shares in the company, valued at approximately $10,699,926.30. This trade represents a 18.35% 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 90 days, insiders have sold 70,589 shares of company stock worth $18,314,015. 8.90% of the stock is owned by insiders.
Wall Street Analyst Weigh In Several research firms have commented on AMZN. Citizens Jmp restated a “market outperform” rating and issued a $315.00 target price on shares of Amazon.com in a research note on Friday, July 31st. Bank of America raised their price objective on Amazon.com from $310.00 to $320.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Cantor Fitzgerald restated an “overweight” rating and set a $320.00 price objective (down from $330.00) on shares of Amazon.com in a research report on Friday, July 31st. Monness Crespi & Hardt lifted their price objective on shares of Amazon.com from $315.00 to $330.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Finally, Benchmark upped their target price on Amazon.com from $370.00 to $400.00 and gave the company a “buy” rating in a research report on Friday, July 31st. 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 data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $323.09. View Our Latest Research Report on Amazon.com
Key Headlines Impacting Amazon.com Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AWS and AI expansion remain key catalysts. Amazon’s planned $5.3 billion investment in a Saudi Arabia cloud region, expanded access to OpenAI, Meta, and Anthropic models through AWS GovCloud, and a deeper partnership with Nvidia—including two million additional GPUs—could strengthen AWS’s position in government and enterprise AI. AMZN’s Saudi Arabia investment Positive Sentiment: New commerce initiatives could broaden monetization. YouTube’s integration of Amazon products into its Shopping Affiliate Program may increase product discovery and sales, while Alexa’s personalized shopping alerts and Amazon Pharmacy’s Solv integration could improve customer engagement and conversion. YouTube Amazon partnership Positive Sentiment: Analysts remain constructive. Citi reiterated a Buy rating and a $350 price target despite the legal risks, while recent results showed $200.6 billion in revenue and substantially stronger-than-expected earnings, with AWS revenue reportedly growing 36.7% year over year. Analyst reiterates Amazon Buy rating Neutral Sentiment: Zoox is expanding its robotaxi efforts. Amazon’s autonomous-vehicle unit plans testing in Houston and San Diego, but the initiative is still early-stage and has limited near-term earnings impact. Zoox and Waymo robotaxi expansion Negative Sentiment: The FTC lawsuit is driving the immediate pressure. The FTC and 22 states allege Amazon manipulated advertising auctions and overcharged approximately 1.2 million advertisers by more than $20 billion. Potential penalties, refunds, operational changes, and limits on ad-pricing practices threaten a rapidly growing, high-margin business. Amazon denies the allegations. FTC lawsuit against Amazon Negative Sentiment: AI spending and shareholder concerns remain overhangs. Investors are weighing the capital required for Amazon’s AI infrastructure against future returns, while reports of an institutional investor trimming its stake add near-term selling pressure. Amazon.com Trading Down 1.9% AMZN opened at $254.92 on Wednesday. The company has a fifty day moving average price of $252.57 and a two-hundred day moving average price of $241.40. Amazon.com, Inc. has a 1-year low of $196.00 and a 1-year 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. The company has a market cap of $2.75 trillion, a P/E ratio of 20.51, a price-to-earnings-growth ratio of 2.00 and a beta of 1.44.
Amazon.com (NASDAQ:AMZN – Get Free Report) last posted 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 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 period 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. Analysts predict that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.
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.
Read More Five stocks we like better than Amazon.com Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery
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Confluence Wealth Services Inc. lifted its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 48.1% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 47,283 shares of the e-commerce giant’s stock after buying an additional 15,356 shares during the period. Confluence Wealth Services Inc.’s holdings in Amazon.com were worth $11,269,000 at the end of the most recent quarter.
Several other institutional investors have also bought and sold shares of AMZN. Red Crane Wealth Management LLC lifted its position in shares of Amazon.com by 2.3% during 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 purchasing an additional 38 shares in the last quarter. Robinson Smith Wealth Advisors LLC grew 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 worth $1,147,000 after purchasing an additional 40 shares in the last quarter. Sfam LLC increased its stake in Amazon.com by 3.4% in the 1st 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. increased its stake in 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 valued at $251,000 after buying an additional 40 shares during the last quarter. Finally, CoreFirst Bank & Trust lifted its position in shares of Amazon.com by 1.1% during the 1st quarter. CoreFirst Bank & Trust now owns 3,620 shares of the e-commerce giant’s stock worth $754,000 after buying an additional 40 shares in the last quarter. Institutional investors own 72.20% 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 expansion remain key catalysts. Amazon’s planned $5.3 billion investment in a Saudi Arabia cloud region, expanded access to OpenAI, Meta, and Anthropic models through AWS GovCloud, and a deeper partnership with Nvidia—including two million additional GPUs—could strengthen AWS’s position in government and enterprise AI. AMZN’s Saudi Arabia investment Positive Sentiment: New commerce initiatives could broaden monetization. YouTube’s integration of Amazon products into its Shopping Affiliate Program may increase product discovery and sales, while Alexa’s personalized shopping alerts and Amazon Pharmacy’s Solv integration could improve customer engagement and conversion. YouTube Amazon partnership Positive Sentiment: Analysts remain constructive. Citi reiterated a Buy rating and a $350 price target despite the legal risks, while recent results showed $200.6 billion in revenue and substantially stronger-than-expected earnings, with AWS revenue reportedly growing 36.7% year over year. Analyst reiterates Amazon Buy rating Neutral Sentiment: Zoox is expanding its robotaxi efforts. Amazon’s autonomous-vehicle unit plans testing in Houston and San Diego, but the initiative is still early-stage and has limited near-term earnings impact. Zoox and Waymo robotaxi expansion Negative Sentiment: The FTC lawsuit is driving the immediate pressure. The FTC and 22 states allege Amazon manipulated advertising auctions and overcharged approximately 1.2 million advertisers by more than $20 billion. Potential penalties, refunds, operational changes, and limits on ad-pricing practices threaten a rapidly growing, high-margin business. Amazon denies the allegations. FTC lawsuit against Amazon Negative Sentiment: AI spending and shareholder concerns remain overhangs. Investors are weighing the capital required for Amazon’s AI infrastructure against future returns, while reports of an institutional investor trimming its stake add near-term selling pressure. Amazon.com Trading Down 1.9% Shares of AMZN stock opened at $254.92 on Wednesday. The company’s fifty day simple moving average is $252.57 and its two-hundred day simple moving average is $241.40. 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 1 year low of $196.00 and a 1 year high of $287.20. The stock has a market capitalization of $2.75 trillion, a price-to-earnings ratio of 20.51, a PEG ratio of 2.00 and a beta of 1.44. Amazon.com (NASDAQ:AMZN – Get Free Report) last posted its earnings results 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. The firm had revenue of $200.61 billion for the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The business’s quarterly revenue was up 19.6% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.68 earnings per share. As a group, analysts anticipate that Amazon.com, Inc. will post 8.05 earnings per share for the current year.
Insider Buying and Selling at Amazon.com In other Amazon.com news, CEO Andrew R. Jassy sold 20,000 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $5,180,200.00. Following the completion of the transaction, the chief executive officer owned 2,235,766 shares in the company, valued at $579,085,751.66. This trade represents a 0.89% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian T. Olsavsky sold 6,172 shares of Amazon.com stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $260.31, for a total value of $1,606,633.32. Following the transaction, the chief financial officer directly owned 109,207 shares of the company’s stock, valued at $28,427,674.17. The trade was a 5.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 70,589 shares of company stock worth $18,314,015 in the last three months. 8.90% of the stock is currently owned by corporate insiders.
Wall Street Analyst Weigh In Several research firms have recently issued reports on AMZN. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $375.00 target price (up from $335.00) on shares of Amazon.com in a report on Friday, July 31st. Morgan Stanley reissued an “overweight” rating and issued a $335.00 price objective (up from $330.00) on shares of Amazon.com in a research report on Friday, July 31st. Robert W. Baird set a $310.00 price objective on Amazon.com and gave the company an “outperform” rating in a research note on Friday, July 31st. Monness Crespi & Hardt raised their target price on Amazon.com from $315.00 to $330.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $325.00 target price (up from $315.00) on shares of Amazon.com in a research note 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 issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $323.09.
View Our Latest Research Report on Amazon.com
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.
Featured Stories Five stocks we like better than Amazon.com Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery 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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The ECB warns hyperscaler borrowing could crowd out issuers as Amazon's free cash flow remains negative. Summary
AWS growth is strong; its funding pressure is becoming systemic.
Amazon AMZN, the e-commerce and cloud giant, traded at $255.33 Wednesday as its massive AI spending spree began shaking up Europe's corporate-debt market. Reuters reported that Amazon and other U.S. technology titans are closing in on 10% of gross new euro-denominated corporate issuance. That flood of borrowing could drive up financing costs and leave weaker companies fighting for whatever capital remains.
Amazon has the growth—and the ambition—to keep spending. Its second-quarter results showed revenue soaring 20% to $200.6 billion, while AWS sales rocketed 37% to $42.2 billion and operating income hit $16.6 billion. The company has now pushed planned 2026 capital expenditures to roughly $220 billion, pouring money into AI infrastructure before the next wave of cloud demand fully arrives.
The number is staggering: that $220 billion budget equals about 130% of AWS's $168.8 billion annualized quarterly revenue, although the spending also supports Amazon's wider business. Reuters reported that trailing free cash flow swung to negative $7.6 billion as construction bills arrived before the new infrastructure could start producing cloud revenue. At $255.33, the stock sits 3.3% above its $247.18 GF Value™, showing investors are already paying a modest premium for Amazon's enormous AI bet.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
AWS just posted its fastest growth in 18 quarters, Amazon is pouring $200 billion into AI infrastructure, and analysts keep lifting their targets. So what would it actually take to push AMZN from here to $350?
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Amazon (NASDAQ: AMZN | AMZN Price Prediction) is having the kind of year that reminds investors why they own it. Shares are up 15.43% year to date and 17.55% in the past month alone, riding a July earnings report that CEO Andy Jassy summed up bluntly: “AWS is booming.”
Cloud growth just hit its fastest pace in 18 quarters, advertising is compounding at a mid-20s clip, and management is pouring roughly $200 billion into AI infrastructure this year. Let’s walk through what it would take for AMZN to hit $350 per share in 2027.
Wall Street Is Already Warming to Amazon’s 2027 Setup The consensus 1-year price target sits at $327, with 43 Buys, 16 Strong Buys, and just 3 Holds among covering analysts. That target implies meaningful upside from today’s $266.43 close, and it’s been drifting higher as AWS reaccelerates.
AWS growth has climbed from 20% in Q3 2025 to 24%, then 28%, and 37% in Q2 2026. Amazon has also topped EPS estimates in each of the last four quarters, including a 60.69% beat in Q1 2026. When a mega-cap is accelerating and beating, forward estimates tend to keep migrating up.
Path to $350 Per Share AMZN trades at a forward P/E of roughly 22, essentially in line with the S&P 500. Forward EPS is pegged at $14.42. At $350, shares would trade around 24x forward earnings, a modest premium that looks reasonable when quarterly earnings grew 242% and operating income expanded 43% year over year last quarter.
What could push AMZN to $350?
AWS backlog. The book stands at $496 billion, growing triple digits year over year, with 2027 capacity largely reserved already. AI and custom silicon. Amazon’s AI and Chips businesses each cleared $25 billion annualized run rates, with OpenAI and Anthropic committing to multi-year, multi-gigawatt Trainium capacity. Advertising. Ads revenue reached $19.81 billion, up 26%, with sold-out NFL, NBA, and NASCAR inventory. Margin leverage. AWS operating margin hit 39.4%, and Jassy told investors AWS could become “a trillion-dollar annual revenue business” in time. Rate relief. The 10-year Treasury at 4.67% sits near cycle highs. Any easing would lift growth-stock multiples. History Says This Kind of Move Isn’t a Stretch Hitting $350 requires roughly a 31% gain from here. AMZN has done that and more many times. Over the past decade, shares are up 594%.
Prediction markets are already leaning into the setup, with Polymarket assigning 87% probability to 2026 capex exceeding $200 billion, a proxy for AI capacity coming online in 2027 (we mapped seven suppliers riding that same buildout, from power to networking, in a free report on AI infrastructure names that aren’t chipmakers).
Bottom Line on $350 Reaching $350 by late 2027 requires Amazon to keep converting AI capex into cloud revenue, hold advertising’s mid-20s growth, and let AWS margins do the heavy lifting.
Risks are real. Free cash flow is negative $7.6 billion TTM, and near-term sentiment reads neutral at 47. But with a $327 Street target, accelerating AWS, and a backlog approaching half a trillion dollars, the bull case for AMZN is genuinely getting harder to ignore.
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