Amazon.com (NASDAQ:AMZN) Shares Down 1.4% – Here’s Why

Amazon.com, Inc. (NASDAQ:AMZN)’s share price was down 1.4% during mid-day trading on Monday. The company traded as low as $244.73 and last traded at $246.15. 31,848,218 shares changed hands during mid-day trading, a decline of 32% from the average session volume of 47,061,945 shares. The stock had previously closed at $249.67.

More Amazon.com News

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

• Positive Sentiment: Adobe forecasts a record $275 billion U.S. holiday shopping season, supporting expectations for strong Amazon retail volume. Analysts cited in the report maintain a bullish view on AMZN ahead of peak shopping. Amazon Stock Poised for Record Holiday Season Surge
• Positive Sentiment: Recent commentary highlights accelerating AWS growth, substantial contracted backlog and Amazon’s large artificial-intelligence infrastructure investment. The thesis is that rising AI demand could eventually produce recurring, high-margin cloud revenue, although the spending is weighing on near-term investor confidence. Amazon AWS Growth and Valuation
• Positive Sentiment: New fuel discounts for Prime members could improve the value of Amazon’s subscription ecosystem and support retention, while the company’s India expansion and robotics investments offer longer-term growth avenues. Amazon Prime Fuel Discount
• Neutral Sentiment: Anthropic’s lower-cost Claude models are testing AWS Bedrock’s pricing elasticity. Lower prices may reduce revenue per model call, but could also stimulate enough additional usage to expand overall cloud consumption. Cheaper Claude Tests Bedrock Elasticity
• Negative Sentiment: A U.K. consumer lawsuit against Apple and Amazon was revived in part, alleging restrictions on competition in the sale of Apple products through Amazon’s U.K. marketplace. The case creates potential legal costs and regulatory scrutiny. Apple and Amazon Face Revived UK Consumer Lawsuit
• Negative Sentiment: Senate Democrats are seeking information from Amazon and other technology companies about AI and data-center tax subsidies. Although subsidies could reduce infrastructure costs, the inquiry raises the risk of political or regulatory limits. Senate Questions AI Tax Subsidies

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on AMZN shares. Piper Sandler restated an “overweight” rating and issued a $320.00 price objective (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Roth Capital reiterated a “buy” rating and set a $325.00 target price on shares of Amazon.com in a research note on Monday, August 3rd. Jefferies Financial Group reissued a “buy” rating on shares of Amazon.com in a report on Thursday, June 18th. Monness Crespi & Hardt raised their price target on Amazon.com from $315.00 to $330.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Finally, Wolfe Research restated an “outperform” rating and issued a $315.00 price target on shares of Amazon.com in a research note on Friday, July 31st. Fifty-six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, Amazon.com currently has an average rating of “Moderate Buy” and a consensus target price of $321.19.

Amazon.com Stock Performance

The firm’s fifty day moving average price is $256.39 and its 200-day moving average price is $247.20. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The firm has a market cap of $2.66 trillion, a price-to-earnings ratio of 19.80, a PEG ratio of 1.93 and a beta of 1.44.

Amazon.com (NASDAQ:AMZN) last posted its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The firm had revenue of $200.61 billion for the quarter, compared to the consensus estimate of $197.03 billion. During the same period last year, the firm posted $1.68 EPS. The company’s revenue was up 19.6% on a year-over-year basis. Analysts expect that Amazon.com, Inc. will post 8.01 earnings per share for the current year.

Insider Activity at Amazon.com

In other Amazon.com news, SVP David Zapolsky sold 9,258 shares of the firm’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the transaction, the senior vice president owned 41,190 shares of the company’s stock, valued at approximately $10,699,926.30. This trade represents a 18.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Jassy sold 20,000 shares of the business’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $5,180,200.00. Following the completion of the sale, the chief executive officer directly owned 2,235,766 shares of the company’s stock, valued at $579,085,751.66. The trade was a 0.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 71,589 shares of company stock valued at $18,568,785. Corporate insiders own 8.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Auto Owners Insurance Co boosted its stake in Amazon.com by 27,376.7% during 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 purchasing an additional 98,090,585 shares during the period. Bank of America Corp DE acquired a new position in Amazon.com in the second quarter valued at $22,218,775,000. Bank of New York Mellon Corp purchased a new stake in shares of Amazon.com in the second quarter valued at about $16,341,405,000. Legal & General Group Plc purchased a new stake in shares of Amazon.com in the second quarter valued at about $12,831,376,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Amazon.com during the second quarter worth about $6,631,466,000. Institutional investors and hedge funds own 72.20% of the company’s stock.

About Amazon.com

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.