Amazon.com (NASDAQ:AMZN) Shares Down 2% – Time to Sell?

Amazon.com, Inc. (NASDAQ:AMZN) shares were down 2% on Tuesday . The company traded as low as $247.22 and last traded at $248.42. Approximately 35,526,116 shares traded hands during trading, a decline of 25% from the average session volume of 47,553,070 shares. The stock had previously closed at $253.54.

Key Amazon.com News

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

• Positive Sentiment: Amazon’s potential agreement to purchase as much as $60 billion of Qualcomm AI chips reinforces its long-term AWS and artificial-intelligence infrastructure ambitions. The deal has also prompted analysts to raise Qualcomm estimates, suggesting substantial expected demand from Amazon. Amazon Qualcomm AI chip deal
• Positive Sentiment: Amazon’s investment in Anthropic could gain value if the AI developer proceeds with a reported initial public offering at a valuation as high as $2 trillion. Anthropic also reportedly expects a second consecutive quarter of adjusted operating profit, although accounting and investment costs remain important caveats. Amazon Anthropic investment
• Positive Sentiment: Prime Big Deal Days will run October 6–7, giving investors an early indicator of holiday demand. Amazon also reported that its Amazon Now rapid-delivery business in India surpassed $1 billion in annualized sales, supporting international growth. Prime Big Deal Days announcement
• Neutral Sentiment: Amazon is expanding U.S. AI infrastructure manufacturing with Wiwynn in Texas and has ordered additional rockets for Project Kuiper. These moves support strategic growth but require substantial capital and face execution and competitive risks. Amazon Wiwynn partnership
• Negative Sentiment: AWS said it cannot restore access to a Bahrain facility and one of three UAE availability zones damaged during the Iran conflict. The prolonged outage raises concerns about data recovery, service resilience, customer retention and potential costs. AWS Bahrain and UAE outage
• Negative Sentiment: Investor commentary indicates Microsoft Azure is gaining AI-cloud momentum while AWS and Google Cloud lag, intensifying questions about Amazon’s competitive position in the fastest-growing part of cloud computing. Amazon cloud growth competition
• Negative Sentiment: Amazon has paused operations with 21 Air after a fatal Miami cargo-plane crash, creating potential logistics disruption and reputational or regulatory risk. Rising yields, oil prices and expectations for a Fed rate hike are also weighing on growth-oriented technology and consumer-discretionary stocks.

Wall Street Analysts Forecast Growth

AMZN has been the subject of a number of recent analyst reports. Telsey Advisory Group set a $335.00 price objective on Amazon.com and gave the stock an “outperform” rating in a report on Friday, July 31st. Mizuho set a $330.00 target price on Amazon.com and gave the company an “outperform” rating in a research note on Friday, July 31st. Rosenblatt Securities initiated coverage on Amazon.com in a research note on Thursday, August 20th. They set a “buy” rating and a $335.00 target price on the stock. HSBC reiterated a “buy” rating and set a $310.00 price target on shares of Amazon.com in a research report on Friday, July 31st. Finally, Robert W. Baird set a $310.00 price target on Amazon.com and gave the stock an “outperform” rating in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $323.26.

Amazon.com Stock Performance

The stock has a market cap of $2.68 trillion, a P/E ratio of 19.99, a PEG ratio of 1.98 and a beta of 1.44. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. The company has a fifty day moving average of $255.75 and a 200 day moving average of $244.72.

Amazon.com (NASDAQ:AMZN) last issued its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The firm had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. During the same period last year, the company posted $1.68 EPS. The firm’s quarterly revenue was up 19.6% on a year-over-year basis. On average, equities analysts predict that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, VP Shelley Reynolds sold 2,343 shares of Amazon.com stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $606,860.43. Following the transaction, the vice president directly owned 119,780 shares of the company’s stock, valued at $31,024,217.80. The trade was a 1.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the business’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 completion of the sale, the senior vice president owned 41,190 shares in the company, valued at approximately $10,699,926.30. This trade represents a 18.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 71,589 shares of company stock valued at $18,568,785. 8.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Amazon.com

Several large investors have recently made changes to their positions in the business. Trust Asset Management LLC boosted its holdings in shares of Amazon.com by 3.3% in the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock worth $26,000 after buying an additional 3,414 shares during the period. TOP Private Wealth LLC. purchased a new position in shares of Amazon.com in the second quarter worth approximately $29,000. Bard Associates Inc. acquired a new stake in shares of Amazon.com during the second quarter valued at approximately $32,000. Longfellow Investment Management Co. LLC acquired a new stake in shares of Amazon.com during the second quarter valued at approximately $33,000. Finally, MilWealth Group LLC lifted its position in shares of Amazon.com by 79.0% in the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after acquiring an additional 79 shares in the last quarter. Institutional investors own 72.20% of the company’s stock.

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company that operates online marketplaces and provides a broad range of consumer products and services. Its retail business sells merchandise directly to customers and enables third-party sellers to offer products through Amazon’s websites and applications. The company also operates physical stores and provides services such as digital content, subscriptions, and consumer devices, including Kindle and Echo products.

Amazon Web Services (AWS) provides cloud computing, storage, database, analytics, artificial intelligence, machine learning, and other technology services to businesses, governments, and organizations.