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

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

Trending Headlines about Amazon.com

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 Analyst Weigh In

A number of equities research analysts recently weighed in on AMZN shares. Mizuho set a $330.00 target price on shares of Amazon.com and gave the company an “outperform” rating in a research note on Friday, July 31st. Rosenblatt Securities assumed coverage on shares of Amazon.com in a report on Thursday, August 20th. They issued a “buy” rating and a $335.00 price target on the stock. Raymond James Financial restated an “outperform” rating and set a $390.00 price objective (up from $280.00) on shares of Amazon.com in a research report on Friday, July 31st. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $320.00 price objective (down from $330.00) on shares of Amazon.com in a report on Friday, July 31st. Finally, Wells Fargo & Company reiterated an “overweight” rating and issued a $338.00 target price (up from $328.00) on shares of Amazon.com in a research report on Thursday, September 3rd. One 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, the stock currently has an average rating of “Moderate Buy” and an average price target of $323.26.

Amazon.com Stock Performance

The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03. The company has a market cap of $2.68 trillion, a PE ratio of 19.99, a PEG ratio of 1.98 and a beta of 1.44. The business’s 50-day moving average is $255.75 and its 200 day moving average is $244.72.

Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.82 by $3.93. The business had revenue of $200.61 billion during 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 company’s revenue was up 19.6% on a year-over-year basis. During the same period in the prior year, the business posted $1.68 earnings per share. On average, equities research analysts predict that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.

Insiders Place Their Bets

In other Amazon.com news, CEO Matthew S. Garman sold 14,541 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $259.06, for a total value of $3,766,991.46. Following the completion of the sale, the chief executive officer owned 17,794 shares in the company, valued at approximately $4,609,713.64. The trade was a 44.97% 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, CFO Brian Olsavsky sold 6,172 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $260.31, for a total value of $1,606,633.32. Following the sale, the chief financial officer directly owned 109,207 shares of the company’s stock, valued at approximately $28,427,674.17. This trade represents a 5.35% 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 sold 71,589 shares of company stock worth $18,568,785. 8.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Amazon.com

Institutional investors have recently added to or reduced their stakes in the company. TOP Private Wealth LLC. bought a new position in shares of Amazon.com during the second quarter worth about $29,000. Bard Associates Inc. bought a new stake in Amazon.com in the 2nd quarter valued at about $32,000. Longfellow Investment Management Co. LLC bought a new stake in Amazon.com in the 2nd quarter valued at about $33,000. MilWealth Group LLC boosted its stake in Amazon.com by 79.0% during the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after purchasing an additional 79 shares during the period. Finally, Lifetime Wealth Management P.C. acquired a new position in Amazon.com during the 4th quarter valued at about $45,000. Hedge funds and other 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.