Amazon.com Reports Strong Earnings, Surpassing Analyst Estimates

Amazon.com, Inc. (NASDAQ:AMZN) shared its latest quarterly earnings on Thursday, revealing impressive figures that exceeded analysts' expectations. The e-commerce powerhouse posted an earnings per share (EPS) of $1.43 for the quarter, outperforming the consensus estimate of $1.14 by $0.29. According to reports, the company's revenue reached $158.88 billion, which also surpassed the anticipated $157.28 billion.

In terms of profitability, Amazon.com exhibited a return on equity of 21.39% and a net margin of 7.35%. Compared to the previous year, the company's revenue showed an increase of 11.0%. During the same quarter last year, Amazon reported an EPS of $0.85, highlighting significant growth.

Stock Performance After Earnings Announcement

Following the announcement of its earnings, Amazon's stock saw a notable increase of 6.1%. On Friday, the stock traded up by $11.34, reaching a price of $197.74. The trading volume was substantially higher, with 69,962,555 shares changing hands compared to an average volume of 41,190,016. Currently, Amazon's market capitalization stands at $2.08 trillion.

Analysts' Price Target Adjustments

Several financial analysts have updated their assessments of AMZN shares. TD Securities raised its price target for Amazon.com from $225.00 to $245.00, while Evercore ISI increased its target from $240.00 to $260.00, maintaining an "outperform" rating. Similarly, Needham & Company LLC reaffirmed a "buy" rating with a price target of $210.00. Benchmark also adjusted their target from $200.00 to $215.00, assigning a "buy" rating.

Furthermore, Cantor Fitzgerald reiterated an "overweight" rating with a price target set at $230.00. Analysts' ratings reflect a general consensus of optimism, with two holding a "hold" rating, forty-two issuing a "buy" rating, and one assigning a "strong buy" rating.

Insider Trading Activity

In related news, insider trading activity has been noted at Amazon.com. CEO Andrew R. Jassy recently sold 20,784 shares of stock in a transaction dated August 21st, with an average selling price of $180.77, totaling $3,757,123.68. After the sale, Jassy still holds 2,056,534 shares, valued at approximately $371.76 million.

Additionally, CFO Brian T. Olsavsky sold 14,600 shares the same day at an average price of $180.00, resulting in a total transaction value of $2.63 million. Following this transaction, he retains 49,000 shares valued at around $8.82 million. Overall, insiders at Amazon sold 50,855 shares worth $9.22 million in the last quarter, and they collectively own about 10.80% of the company's stock.

About Amazon.com, Inc.

Amazon.com, Inc. operates as a global leader in e-commerce and is involved in the retail sale of consumer products, advertising, and subscriptions through both online and physical platforms. The company is divided into three main segments: North America, International, and Amazon Web Services (AWS). Besides its retail offerings, Amazon manufactures electronic devices such as the Kindle, Fire tablets, and Echo, alongside producing media content.

Amazon, Earnings, Stocks