Zacks Research Downgrades Amazon.com (NASDAQ:AMZN) to Hold

Amazon.com (NASDAQ:AMZN) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Monday, Zacks reports.

Several other analysts also recently issued reports on AMZN. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $375.00 price target (up from $335.00) on shares of Amazon.com in a report on Friday, July 31st. Citizens Jmp restated a “market outperform” rating and set a $315.00 price objective on shares of Amazon.com in a research report on Friday, July 31st. Royal Bank Of Canada upped their target price on Amazon.com from $320.00 to $330.00 and gave the company an “outperform” rating in a research note on Friday, July 31st. Wolfe Research reiterated an “outperform” rating and set a $315.00 target price on shares of Amazon.com in a report on Friday, July 31st. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $325.00 price target (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Fifty-six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, Amazon.com presently has a consensus rating of “Moderate Buy” and an average target price of $323.26.

Amazon.com Trading Down 2.0%

Shares of AMZN stock opened at $248.42 on Monday. The stock has a market cap of $2.68 trillion, a P/E ratio of 19.99, a P/E/G ratio of 1.95 and a beta of 1.44. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. Amazon.com has a fifty-two week low of $196.00 and a fifty-two week high of $287.20. The business has a fifty day simple moving average of $255.80 and a 200-day simple moving average of $244.98.

Amazon.com (NASDAQ:AMZN) last released its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, topping the consensus estimate of $1.82 by $3.93. The business had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The business’s revenue for the quarter was up 19.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.68 EPS. On average, analysts forecast that Amazon.com will post 8.05 earnings per share for the current fiscal year.

Insider Transactions at Amazon.com

In related news, VP Shelley Reynolds sold 2,343 shares of the 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 in the company, valued at approximately $31,024,217.80. This represents a 1.92% decrease in their ownership of the stock. The transaction was disclosed in a filing 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 R. Jassy sold 20,000 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was 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 in the company, valued at approximately $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. Insiders sold 71,589 shares of company stock worth $18,568,785 in the last three months. 8.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Trust Asset Management LLC increased its holdings in shares of Amazon.com by 3.3% during the 2nd 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 last quarter. TOP Private Wealth LLC. purchased a new stake in Amazon.com during the second quarter valued at about $29,000. Bard Associates Inc. acquired a new stake in Amazon.com during the second quarter worth about $32,000. Longfellow Investment Management Co. LLC acquired a new stake in Amazon.com during the second quarter worth about $33,000. Finally, MilWealth Group LLC raised its holdings 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 worth $41,000 after purchasing an additional 79 shares during the period. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Amazon.com

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

• Positive Sentiment: Large AI infrastructure commitments support AWS growth. Amazon reportedly could purchase up to $60 billion of Qualcomm AI chips, while its partnership with Wiwynn will expand U.S. server manufacturing capacity and create nearly 1,000 jobs. These developments reinforce Amazon’s long-term investment in cloud and artificial-intelligence infrastructure. Amazon Could Buy Up to $60 Billion From Qualcomm
• Positive Sentiment: Anthropic stake and operating outlook remain potential value drivers. Reports that Anthropic expects a second consecutive quarter of adjusted operating profit—and could pursue a valuation of as much as $2 trillion—highlight the potential value of Amazon’s roughly $13 billion investment in the AI developer. Anthropic Expects a Second Straight Quarter of Adjusted Operating Profit
• Positive Sentiment: Retail and advertising initiatives offer additional support. Amazon India’s rapid-delivery service reportedly surpassed $1 billion in annualized sales, and the company scheduled Prime Big Deal Days for October 6–7. Amazon also expanded its advertising reach through a pilot with ChatGPT. Amazon India’s Amazon Now Tops $1 Billion
• Neutral Sentiment: Analysts remain broadly optimistic. Coverage indicates Amazon has no sell ratings and continued confidence in earnings, cash flow and AWS growth, although bullish ratings have not prevented near-term volatility. Is It Worth Investing in Amazon Based on Wall Street’s Bullish Views?
• Negative Sentiment: AWS cannot restore access to damaged facilities in Bahrain and the UAE. The prolonged loss of access to customer data and cloud availability zones raises concerns about service resilience, customer retention, potential costs and reputational damage. This was the most direct company-specific pressure on AMZN. AWS Unable to Restore Access After War Damage
• Negative Sentiment: Macro and competitive pressures weighed on technology stocks. Investors prepared for a Federal Reserve rate decision amid higher yields and oil prices, while commentary suggested AWS cloud growth is lagging Microsoft Azure and Google Cloud in AI. Amazon also paused operations with 21 Air after a fatal cargo-plane crash, adding logistics and reputational risk. Amazon Stock Slides: What’s Happening?

Amazon.com Company Profile

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.