Amazon.com (NASDAQ:AMZN) Shares Down 2% – Should You Sell?

Amazon.com, Inc. (NASDAQ:AMZN)’s share price fell 2% on Thursday . The company traded as low as $248.00 and last traded at $249.89. Approximately 44,742,488 shares were traded during mid-day trading, a decline of 10% from the average daily volume of 49,882,773 shares. The stock had previously closed at $254.96.

Key Stories Impacting Amazon.com

Here are the key news stories impacting Amazon.com this week:

• Positive Sentiment: Wedbush initiated coverage with an Outperform rating and a $293 price target, citing Amazon’s attractive position in the AI infrastructure buildout and suggesting meaningful upside from current levels. Amazon.com is now covered by Wedbush. They set an “outperform” rating and a $293.00 price target on the stock.
• Positive Sentiment: KeyBanc also turned more constructive, arguing Amazon’s heavy capital spending on AI data centers is a feature, not a bug, because AWS demand is re-accelerating and long-term compute demand remains strong. Amazon’s AI Arms Race: KeyBanc Says Massive Capex Is a Feature, Not a Bug
• Positive Sentiment: Multiple reports highlighted Amazon as a top AI/hyperscaler pick, with analysts saying the company may have a cost advantage in the AI data-center race and could benefit from expanding cloud and chip opportunities. In the AI Data Center Buildout, Amazon.com Inc (AMZN) Has a Cost Advantage
• Positive Sentiment: Retail and Prime Day coverage suggested U.S. consumer spending remains resilient, with Amazon’s summer promotion helping support online sales momentum heading into back-to-school season. Retail sales get a boost from car buyers and Amazon Prime Day. The economy hasn’t lost its mojo.
• Neutral Sentiment: Some articles noted concerns about Amazon’s aggressive AI capex, including the possibility of weaker free cash flow, but these worries were largely countered by upbeat analyst commentary.
• Neutral Sentiment: Amazon also drew attention for a senior AWS executive departure and for a new satellite-internet move in South Africa, but these look more incremental than stock-moving compared with the AI and valuation headlines.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Mizuho raised their target price on Amazon.com from $315.00 to $325.00 and gave the company an “outperform” rating in a report on Tuesday, April 28th. KeyCorp set a $335.00 price target on shares of Amazon.com and gave the stock an “overweight” rating in a research note on Thursday. TD Cowen reiterated a “buy” rating and issued a $340.00 price target (down from $350.00) on shares of Amazon.com in a report on Wednesday, July 8th. Barclays reiterated an “overweight” rating on shares of Amazon.com in a report on Tuesday, June 9th. Finally, TD Securities raised shares of Amazon.com to a “buy” rating in a report on Monday, April 13th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $312.76.

Amazon.com Trading Down 2.0%

The firm has a market cap of $2.69 trillion, a PE ratio of 29.89, a PEG ratio of 1.85 and a beta of 1.46. The business has a 50-day moving average price of $251.76 and a two-hundred day moving average price of $235.73. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01.

Amazon.com (NASDAQ:AMZN) last released its quarterly earnings data on Wednesday, April 29th. The e-commerce giant reported $2.78 EPS for the quarter, topping the consensus estimate of $1.63 by $1.15. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The business had revenue of $181.52 billion for the quarter, compared to analyst estimates of $177.28 billion. During the same period in the previous year, the firm earned $1.59 EPS. The business’s revenue for the quarter was up 16.6% compared to the same quarter last year. Analysts forecast that Amazon.com, Inc. will post 7.75 EPS for the current year.

Insider Buying and Selling

In other news, CEO Douglas J. Herrington sold 1,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $239.77, for a total value of $239,770.00. Following the sale, the chief executive officer directly owned 484,527 shares in the company, valued at $116,175,038.79. This represents a 0.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $262.38, for a total transaction of $620,003.94. Following the transaction, the vice president directly owned 119,780 shares of the company’s stock, valued at approximately $31,427,876.40. This trade represents a 1.93% 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. Over the last ninety days, insiders have sold 175,274 shares of company stock valued at $46,621,204. 8.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Amazon.com

A number of institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC grew its stake in 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 lifted its stake in shares of Amazon.com by 4.1% during the 4th 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 during the period. Bank Pictet & Cie Europe AG boosted its holdings in shares of 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 during the last quarter. Highview Capital Management LLC DE boosted its holdings in shares of 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 worth $6,357,000 after purchasing an additional 1,518 shares during the last quarter. Finally, Liberty Square Wealth Partners LLC purchased a new stake in shares of Amazon.com in the fourth quarter valued at $2,153,000. 72.20% of the stock is owned by institutional investors and hedge funds.

Amazon.com Company Profile

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.