Amazon.com (NASDAQ:AMZN) Shares Down 3.5% – Here’s Why

Amazon.com, Inc. (NASDAQ:AMZN) was down 3.5% during mid-day trading on Wednesday . The stock traded as low as $236.00 and last traded at $237.47. Approximately 44,027,507 shares changed hands during mid-day trading, a decline of 8% from the average daily volume of 47,841,223 shares. The stock had previously closed at $246.00.

More Amazon.com News

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

• Positive Sentiment: Amazon continues to expand its AWS and AI footprint, including new AI agents unveiled at its AWS summit, deeper integrations with cybersecurity firms, and a new partnership with Odyssey, an AI startup focused on simulating the physical world. Article: Amazon unveils new AI agents, trying to thread the needle between autonomy and human control Article: Amazon Teams With Newly-Minted Physical AI Unicorn Odyssey
• Positive Sentiment: Commentary around Amazon’s cloud and retail businesses remains constructive, with analysts still largely bullish and several notes pointing to strong revenue growth, continued AWS momentum, and potential upside from Prime Day and AI-related spending. Article: Amazon has lagged OpenAI and Anthropic, but AI chief sees path to catch up in ‘coming year’
• Positive Sentiment: Amazon also drew support from continued expansion of its infrastructure, including a multibillion-dollar data center campus in Missouri that underscores management’s long-term AI buildout. Article: Amazon Expands Its AI Infrastructure Map
• Neutral Sentiment: Amazon remains active in long-term moonshot areas like quantum computing and Project Kuiper/Leo-related space initiatives, but these headlines are unlikely to affect near-term earnings immediately. Article: Amazon AI exec predicts first ‘commercially useful’ quantum computers in 5-7 years
• Negative Sentiment: Regulatory pressure is a key overhang after reports that the FTC is preparing a complaint over Amazon’s advertising practices, which could expose the company to significant penalties or settlement risk. Article: Amazon faces billions in penalties from potential FTC ad suit, Bloomberg News reports
• Negative Sentiment: Investor concern is also building around the scale of Amazon’s AI spending, with some commentary warning that hyperscaler capex is weighing on sentiment as the market questions the return on those investments. Article: Amazon Stock (AMZN) Slides despite Growing AWS Integration by Cybersecurity Firms
• Negative Sentiment: Amazon is also facing reputational pressure after a survey suggested LGBTQ+ shoppers are shifting spending away from brands seen as retreating from DEI commitments.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on AMZN shares. Citizens Jmp reiterated a “market outperform” rating and issued a $315.00 price target on shares of Amazon.com in a report on Friday, April 10th. Wolfe Research reissued an “outperform” rating and issued a $320.00 price objective (up from $245.00) on shares of Amazon.com in a research report on Thursday, April 30th. Tigress Financial upped their price objective on shares of Amazon.com from $305.00 to $315.00 and gave the company a “buy” rating in a research report on Wednesday, March 25th. UBS Group set a $315.00 price objective on shares of Amazon.com in a research report on Monday, June 1st. Finally, Evercore upped their price objective on shares of Amazon.com from $285.00 to $315.00 and gave the company an “outperform” rating in a research report on Thursday, April 30th. Fifty-seven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $312.78.

Amazon.com Stock Down 3.5%

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’s 50-day moving average price is $254.94 and its 200 day moving average price is $233.91. The firm has a market cap of $2.55 trillion, a P/E ratio of 28.41, a PEG ratio of 1.84 and a beta of 1.44.

Amazon.com (NASDAQ:AMZN) last issued its quarterly earnings results 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 analysts’ expectations of $177.28 billion. During the same quarter last year, the company posted $1.59 earnings per share. The company’s quarterly revenue was up 16.6% compared to the same quarter last year. On average, equities research analysts expect that Amazon.com, Inc. will post 7.71 earnings per share for the current fiscal year.

Insider Activity at Amazon.com

In other news, CEO Andrew R. Jassy sold 31,352 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $275.00, for a total transaction of $8,621,800.00. Following the transaction, the chief executive officer owned 2,175,766 shares of the company’s stock, valued at approximately $598,335,650. This trade represents a 1.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 27,500 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $275.00, for a total transaction of $7,562,500.00. Following the transaction, the chief executive officer directly owned 471,361 shares in the company, valued at $129,624,275. The trade was a 5.51% decrease in their position. 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 three months, insiders sold 195,774 shares of company stock worth $51,614,434. 8.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Amazon.com

A number of large investors have recently bought and sold shares of the business. Steelhead Wealth Management LLC bought a new position in Amazon.com in the first quarter worth about $531,000. S&A Financial Services Inc. bought a new position in Amazon.com in the first quarter worth about $1,043,000. LFG Wealth Partners LLC lifted its holdings in Amazon.com by 16.5% in the first quarter. LFG Wealth Partners LLC now owns 32,803 shares of the e-commerce giant’s stock worth $6,832,000 after acquiring an additional 4,638 shares during the last quarter. Curry Webb Wealth Management LLC bought a new position in Amazon.com in the first quarter worth about $442,000. Finally, Farmers National Bank lifted its holdings in Amazon.com by 3.3% in the first quarter. Farmers National Bank now owns 20,098 shares of the e-commerce giant’s stock worth $4,186,000 after acquiring an additional 637 shares during the last quarter. 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.