Amazon.com (NASDAQ:AMZN) Trading Down 2.5% – Should You Sell?

Amazon.com, Inc. (NASDAQ:AMZN) shares fell 2.5% during trading on Wednesday . The company traded as low as $237.45 and last traded at $238.00. 37,699,279 shares changed hands during mid-day trading, a decline of 22% from the average session volume of 48,067,535 shares. The stock had previously closed at $244.19.

More Amazon.com News

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

• Positive Sentiment: Amazon is deepening its AI and cloud push with the rollout of its faster Graviton5 CPU for AWS customers, which should strengthen its competitiveness in cloud computing and AI workloads. Amazon Rolls Out Faster Graviton5 CPU for AWS Cloud and AI Customers
• Positive Sentiment: Amazon was named one of BMO’s top AI picks, reinforcing Wall Street’s bullish view that AWS and AI investments can drive longer-term upside. BMO Names ‘2 Top AI Stocks’ to Own Right Now
• Positive Sentiment: Pinterest expanded its partnership with Amazon so eligible Amazon products recommended by creators can be linked automatically, which could support product discovery and ecommerce sales. Pinterest bets on creators with Amazon Storefront integration
• Positive Sentiment: Amazon expanded its less-than-truckload (LTL) freight service to outside businesses, signaling a broader logistics push that could create a new revenue stream and improve its supply-chain reach. Amazon Extends LTL Service to Selling Partners’ Warehouses and Distributors
• Positive Sentiment: Amazon secured a $17.5 billion loan facility, giving it added financial flexibility to keep funding AI infrastructure, data centers and other growth projects. Amazon secures $17.5 billion loan facility amid AI-driven capex ramp
• Neutral Sentiment: Amazon continues to win external partnerships, including AWS collaborations in life sciences and a healthcare tie-up with Baptist Health through Amazon One Medical, which adds to the company’s ecosystem but is not an immediate earnings catalyst. Sofinnova Partners Launches Collaboration with AWS to Scale AI Across Life Sciences Innovation
• Neutral Sentiment: Amazon also gained visibility from media coverage and analyst commentary highlighting its long-term AI and cloud potential, but these stories mainly reinforce existing expectations rather than changing the near-term outlook. Where Will Amazon Stock Be in 3 Years?
• Negative Sentiment: Investors are worried that Amazon’s aggressive spending on AI, chips and logistics is pressuring near-term margins, which is helping explain the stock’s recent weakness despite strong growth. Why’s Amazon Suddenly Lagging the S&P 500, and Is It a Warning?
• Negative Sentiment: Amazon’s expanded freight business is pressuring trucking and LTL carrier stocks, underscoring the competitive threat its logistics expansion may create in the broader transport market. Amazon trucking expansion sparks freight stock selloff

Wall Street Analyst Weigh In

A number of brokerages have recently commented on AMZN. DA Davidson lifted their price objective on shares of Amazon.com from $175.00 to $250.00 and gave the company a “neutral” rating in a research report on Thursday, April 30th. BMO Capital Markets lifted their price objective on shares of Amazon.com from $310.00 to $315.00 and gave the company an “outperform” rating in a research report on Thursday, April 23rd. Needham & Company LLC lifted their price objective on shares of Amazon.com from $265.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Morgan Stanley lifted their price objective on shares of Amazon.com from $300.00 to $330.00 and gave the company an “overweight” rating in a research report on Thursday, April 30th. Finally, Roth Mkm lifted their target price on shares of Amazon.com from $285.00 to $300.00 and gave the stock a “buy” rating in a report on Thursday, April 30th. Fifty-seven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $312.52.

Amazon.com Stock Down 2.5%

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.18. The firm has a market cap of $2.56 trillion, a P/E ratio of 28.47, a P/E/G ratio of 1.84 and a beta of 1.44. The firm’s fifty day moving average is $251.52 and its 200 day moving average is $233.29.

Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings data on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.63 by $1.15. The firm had revenue of $181.52 billion during the quarter, compared to the consensus estimate of $177.28 billion. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The business’s revenue for the quarter was up 16.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.59 EPS. As a group, equities research analysts anticipate that Amazon.com, Inc. will post 7.71 earnings per share for the current fiscal year.

Insider Transactions at Amazon.com

In other Amazon.com news, VP Shelley Reynolds sold 2,363 shares of the business’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $262.38, for a total value of $620,003.94. Following the completion of the sale, the vice president owned 119,780 shares of the company’s stock, valued at $31,427,876.40. The trade was a 1.93% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 9,270 shares of the business’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the completion of the sale, the senior vice president directly owned 41,190 shares of the company’s stock, valued at $11,060,750.70. This represents a 18.37% 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 ninety days, insiders have sold 195,774 shares of company stock worth $51,614,434. Company insiders own 8.90% of the company’s stock.

Institutional Trading of Amazon.com

A number of institutional investors have recently bought and sold shares of the business. Brighton Jones LLC raised its position in shares of 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 valued at $885,478,000 after buying an additional 397,007 shares in the last quarter. Revolve Wealth Partners LLC raised its position in shares of Amazon.com by 4.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 25,045 shares of the e-commerce giant’s stock valued at $5,495,000 after buying an additional 986 shares in the last quarter. Bank Pictet & Cie Europe AG raised its position in shares of Amazon.com by 2.8% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,016,869 shares of the e-commerce giant’s stock valued at $442,481,000 after buying an additional 54,987 shares in the last quarter. Highview Capital Management LLC DE raised its position in shares of Amazon.com by 5.5% in the 4th quarter. Highview Capital Management LLC DE now owns 28,975 shares of the e-commerce giant’s stock valued at $6,357,000 after buying an additional 1,518 shares in the last quarter. Finally, Liberty Square Wealth Partners LLC acquired a new position in shares of Amazon.com in the 4th quarter valued at approximately $2,153,000. Institutional investors own 72.20% of the company’s stock.

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.