Shares of Amazon.com Inc. gained 0.68% over the past five trading sessions after losing 0.62% the prior and have traded sideways since mid-August. Year-to-date gain stands at 3.99% and the stock is up 29.93% over the past year. In August Amazon began offering same-day grocery delivery; Jeff Bezos sold nearly three million shares worth $665.8 million in July as part of a plan to unload up to 25 million shares through May 2026. The company deployed its 1 millionth robot and rolled out a new AI foundation model for its robotic fleet. Q2 net sales rose 13% to $167.7 billion and net income increased to $18.2 billion, while free cash flow fell to $18.2 billion TTM from $53.0 billion TTM due to ongoing CapEx on AI. Multiple analysts raised price targets in June and July.
In other company news, the firm announced in July that it deployed its 1 millionth robot while also deploying its new AI foundation model to power its robotic fleet. The robotics cycle is "early," according to Bank of America's analyst, who expects Amazon to leverage robots to reduce labor dependency, increase order accuracy and improve warehouse efficiency, driving material cost savings.
When Amazon released its Q2 earnings on July 31, it reported that net sales increased 13% to $167.7 billion in the second quarter, compared with $148.0 billion in the year-prior quarter. Net income increased to $18.2 billion, or $1.68 per diluted share, compared with $13.5 billion, or $1.26 per diluted share, in Q2 2024. However, free cash flow decreased to $18.2 billion TTM, compared with $53.0 billion TTM the year prior due to Amazon's ongoing CapEx on AI.
In June and July the stock saw a series of adjusted price targets. Analysts at Stifel ($262 from $245), Barclays ($275 from $240), Bank of America ($272 from $265), Piper Sandler ($255 from $250), Capital ($270 from $233), Citi ($265 from $225), Needham ($265 from $220), Cantor Fitzgerald ($260 from $240), Truist ($250 from $226), all recently upgraded their price targets for AMZN.
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