Amazon.com Inc (NASDAQ:AMZN) shares are trading slightly lower on Thursday. The company announced an expansion of its telehealth service ahead of earnings later this month.
- AMZN shares are showing limited movement. Track the action here.
What To Know: Amazon announced an expansion of its Amazon One Medical Pay-per-visit telehealth service, enabling parents and guardians to access care for common childhood conditions through a pay-per-visit model.
The service connects families with board-certified family care providers, and will now cover an expanded number of conditions including pink eye, head lice and common skin issues such as eczema, contact dermatitis, ringworm and bug bites. The service also covers prescription renewals for EpiPen and asthma medications.
No insurance, Prime membership or One Medical membership is required to use the service. Each visit includes a personalized treatment plan and access to follow-up support for 14 days, allowing patients to ask questions about treatment and prescribed medications.
Beyond healthcare, Amazon shares appeared to get a lift in early trading from the company’s significant stake in Anthropic, the artificial intelligence startup. Anthropic reported that its annual revenue run rate is nearing $7 billion this month, up from over $5 billion in August. The company projects reaching a $9 billion annualized revenue run rate by year-end 2025 and is targeting $20 billion to $26 billion in annualized revenue next year, according to Reuters.
Anthropic also launched an updated version of its Haiku AI model aimed at attracting businesses seeking advanced AI capabilities at lower costs.
Amazon is set to report third-quarter earnings at the end of October. The company’s healthcare and AI investments could be featured in investor discussions as the tech sector continues focusing on artificial intelligence adoption and monetization across various business segments. Analysts expect Amazon to report earnings of $1.56 per share and revenue of $177.62 billion, according to estimates from Benzinga Pro.
AMZN Analyst Ratings: Analysts continue to express positive sentiment towards Amazon, with several firms maintaining their bullish outlook or upgrading their previous ratings in recent months. Goldman Sachs retained its Buy rating and raised its price target from $240 to $275 on Oct. 3. Similarly, Wells Fargo recently upgraded its recommendation from Equal-Weight to Overweight, setting a new target of $280, up from a prior target of $245.
In late September, Mizuho initiated coverage on Amazon, assigning an Outperform rating and a $300 target. This was closely followed by Telsey Advisory Group and Wedbush, both of which reiterated Outperform ratings, setting targets at $265 and $250, respectively. These moves reflect growing enthusiasm around Amazon's performance and future potential.
AMZN Price Action: Amazon shares traded as high as $218.59 on Thursday before pulling back. The stock was trading down 0.05% at $215.47 at the time of publication on Thursday, according to Benzinga Pro. Amazon stock is sitting 11.5% below its 52-week high and about 5% below its 50-day moving average.
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