Amazon.com (NASDAQ:AMZN) Shares Down 1.2% – Should You Sell?

Amazon.com, Inc. (NASDAQ:AMZN) shares fell 1.2% during mid-day trading on Friday . The company traded as low as $233.59 and last traded at $238.55. 50,986,182 shares traded hands during mid-day trading, an increase of 6% from the average session volume of 48,038,730 shares. The stock had previously closed at $241.51.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Amazon continues to strengthen its AI and cloud position, with reports saying its custom chips are seeing strong demand in AWS and that its growing AI capabilities could help drive long-term upside. Article Title
• Positive Sentiment: Amazon expanded its logistics moat by launching less-than-truckload freight service for all U.S. businesses, which could improve its supply-chain offering and deepen its role in e-commerce infrastructure. Article Title
• Positive Sentiment: Amazon also signed a major patent license agreement with InterDigital covering Prime Video and devices, removing legal uncertainty and reinforcing its streaming and devices ecosystem. Article Title
• Neutral Sentiment: Analysts and commentators remain constructive on Amazon’s long-term fundamentals, pointing to e-commerce efficiency, AWS AI dominance, and potential value in its Anthropic investment, but these are more long-term catalysts than immediate trading drivers. Article Title
• Negative Sentiment: Investors are worried about Amazon’s heavy AI capital spending and new borrowing, which may pressure margins and free cash flow before the payback shows up. Article Title
• Negative Sentiment: Broader market pieces note that Amazon has lagged the S&P 500 recently and that its valuation has been hit by concerns over capex and softer near-term sentiment. Article Title

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on AMZN. Mizuho increased their price objective on Amazon.com from $315.00 to $325.00 and gave the stock an “outperform” rating in a report on Tuesday, April 28th. Oppenheimer increased their target price on Amazon.com from $275.00 to $320.00 and gave the stock an “outperform” rating in a research note on Thursday, April 30th. Susquehanna reissued a “positive” rating and issued a $325.00 target price (up from $300.00) on shares of Amazon.com in a research note on Thursday, April 30th. Stifel Nicolaus set a $319.00 target price on Amazon.com and gave the stock a “buy” rating in a research note on Thursday, April 30th. Finally, TD Cowen reissued a “buy” rating and issued a $350.00 target price on shares of Amazon.com in a research note on Tuesday, May 12th. Fifty-seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, Amazon.com has a consensus rating of “Moderate Buy” and a consensus target price of $312.78.

Amazon.com Price Performance

The firm has a market capitalization of $2.57 trillion, a PE ratio of 28.53, a PEG ratio of 1.78 and a beta of 1.44. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01. The firm has a 50-day simple moving average of $252.93 and a 200-day simple moving average of $233.59.

Amazon.com (NASDAQ:AMZN) last posted 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 return on equity of 19.92% and a net margin of 12.22%.The firm had revenue of $181.52 billion for the quarter, compared to the consensus estimate of $177.28 billion. During the same quarter last year, the company earned $1.59 earnings per share. The business’s revenue for the quarter was up 16.6% compared to the same quarter last year. As a group, equities analysts forecast that Amazon.com, Inc. will post 7.71 earnings per share for the current year.

Insider Activity at Amazon.com

In other Amazon.com news, CEO Andrew R. Jassy sold 20,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $263.42, for a total transaction of $5,268,400.00. Following the completion of the transaction, the chief executive officer owned 2,205,766 shares in the company, valued at $581,042,879.72. This trade represents a 0.90% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 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 shares were sold at an average price of $262.38, for a total value of $620,003.94. Following the transaction, the vice president owned 119,780 shares of the company’s stock, valued at $31,427,876.40. This represents a 1.93% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 195,774 shares of company stock worth $51,614,434 in the last three months. Corporate insiders own 8.90% of the company’s stock.

Hedge Funds Weigh In On Amazon.com

A number of large investors have recently bought and sold shares of AMZN. Norges Bank bought a new position in shares of Amazon.com in the 4th quarter worth $32,868,735,000. Auto Owners Insurance Co raised its position in shares of Amazon.com by 27,376.7% in the 4th quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant’s stock worth $2,272,397,000 after acquiring an additional 98,090,585 shares in the last quarter. J. Stern & Co. LLP raised its position in shares of Amazon.com by 20,598.0% in the 4th quarter. J. Stern & Co. LLP now owns 87,982,814 shares of the e-commerce giant’s stock worth $20,308,193,000 after acquiring an additional 87,557,736 shares in the last quarter. Nuveen LLC bought a new position in shares of Amazon.com in the 1st quarter worth $11,674,091,000. Finally, Cardano Risk Management B.V. raised its position in shares of Amazon.com by 879.4% in the 4th quarter. Cardano Risk Management B.V. now owns 27,862,400 shares of the e-commerce giant’s stock worth $6,431,199,000 after acquiring an additional 25,017,588 shares in the last quarter. Hedge funds and other institutional investors own 72.20% of the company’s stock.

About Amazon.com

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.