Amazon Shares Climb 1.9% Amid Bullish Analyst Views
Amazon.com (NASDAQ:AMZN) shares climbed 1.9% on Tuesday, reaching a high of $256.67 before closing at $256.29. Trading volume was down 30% from the average daily volume, with approximately 32.6 million shares exchanged.
Analysts remain bullish on Amazon, with Tigress Financial, Susquehanna, and TD Cowen maintaining 'buy' ratings and price targets ranging up to $385. The company's valuation at roughly 20 times earnings is seen as attractive. Positive catalysts include Amazon's Prime Big Deal Days event, a new six-year Emmy Awards agreement for Prime Video, and a potential $8 billion financing deal for Nvidia chips to support AWS expansion.
However, concerns persist about data-center spending pushing free cash flow negative and the uncertain profitability of AWS's heavy investments in AI capacity and custom chips. Insider sales by CEOs Andrew Jassy and Douglas Herrington were noted, though they represent minor portions of their holdings.
Institutional investors have increased their stakes, with State Street Corp, Auto Owners Insurance Co, and Bank of America Corp DE among those boosting their positions. Amazon's market cap stands at $2.76 trillion, with a debt-to-equity ratio of 0.23 and a beta of 1.45.