Amazon.com (NASDAQ:AMZN) Stock Price Down 2.3% – Here’s Why

Amazon.com, Inc. (NASDAQ:AMZN) shares dropped 2.3% during trading on Thursday. The company traded as low as $253.78 and last traded at $254.06. 35,614,860 shares traded hands during trading, a decline of 24% from the average session volume of 46,645,438 shares. The stock had previously closed at $259.92.

More Amazon.com News

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

• Positive Sentiment: Amazon launched three higher-priced Alexa-branded tablets running Android with Google Play access, marking a move into the premium-device market. The strategy could improve hardware revenue and expand Alexa+ adoption, although investors will want evidence of consumer demand. Amazon launches first Android tablets
• Positive Sentiment: Analysts remain broadly bullish, citing accelerating AWS growth, expanding AI services and potential advertising monetization. One report noted that 58 analysts cover Amazon without a sell rating, reinforcing the positive long-term view. Amazon valuation presents attractive entry point
• Positive Sentiment: Amazon introduced two China-to-U.S. air-freight services that should improve inventory replenishment and peak-season logistics. Its advertising business also continues to gain traction through interactive campaigns. Amazon launches China-to-U.S. air freight options
• Neutral Sentiment: Amazon is replacing its budget Fire tablets with premium Alexa devices. The move could lift average selling prices, but it also introduces execution risk if shoppers resist higher prices. Amazon overhauls its device lineup
• Negative Sentiment: Amazon confirmed fewer than 1,000 job cuts, primarily in its Stores division, as it redirects resources toward AI infrastructure. The reductions may improve efficiency but signal cost pressure in the core retail operation. Amazon makes fresh job cuts
• Negative Sentiment: Investors remain concerned that surging AI capital expenditures are depressing free cash flow. Amazon’s spending on data centers, power and chips is strategically important for AWS, but returns may take time and could be vulnerable to a demand slowdown. AI infrastructure and Amazon cash flow
• Negative Sentiment: Amazon’s decision to block outside AI shopping agents, including Meta’s Muse, prompted criticism that the policy could encourage rivals to build alternative commerce platforms. Higher Treasury yields and oil prices also pressured large-cap technology stocks broadly. Amazon AI-agent policy

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. Citigroup reiterated a “market outperform” rating on shares of Amazon.com in a report on Friday, August 14th. The Goldman Sachs Group reissued a “buy” rating and set a $375.00 price target (up from $335.00) on shares of Amazon.com in a research note on Friday, July 31st. Tigress Financial reaffirmed a “buy” rating and issued a $385.00 price objective (up from $315.00) on shares of Amazon.com in a research report on Tuesday. TD Cowen reiterated a “buy” rating and issued a $350.00 target price on shares of Amazon.com in a research note on Monday. Finally, BMO Capital Markets restated an “outperform” rating and issued a $360.00 price target (up from $355.00) on shares of Amazon.com in a report on Tuesday, July 28th. Fifty-six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $322.86.

Amazon.com Stock Performance

The stock has a market cap of $2.74 trillion, a PE ratio of 20.44, a P/E/G ratio of 1.98 and a beta of 1.45. 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 stock has a 50-day simple moving average of $258.64 and a 200-day simple moving average of $249.45.

Amazon.com (NASDAQ:AMZN) last released its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating the consensus estimate of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The business had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. During the same period in the previous year, the company posted $1.68 EPS. The company’s revenue was up 19.6% compared to the same quarter last year. Equities analysts predict that Amazon.com, Inc. will post 8.03 earnings per share for the current fiscal year.

Insider Activity

In other Amazon.com news, CEO Matthew Garman sold 14,541 shares of the firm’s stock in a transaction dated 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 transaction, the chief executive officer directly owned 17,794 shares of the company’s stock, valued at $4,609,713.64. This trade represents a 44.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 6,362 shares of the company’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 $1,647,821.62. Following the completion of the sale, the chief executive officer directly owned 476,681 shares of the company’s stock, valued at $123,465,145.81. The trade was a 1.32% decrease in their position. 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 a total of 71,589 shares of company stock valued at $18,580,515 over the last quarter. 8.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Amazon.com

Several hedge funds have recently modified their holdings of AMZN. State Street Corp increased its position in shares of Amazon.com by 5.5% during the second quarter. State Street Corp now owns 411,848,346 shares of the e-commerce giant’s stock worth $95,504,904,000 after acquiring an additional 21,398,025 shares during the last quarter. Bank of America Corp DE purchased a new position in Amazon.com in the second quarter valued at about $22,218,775,000. Bank of New York Mellon Corp purchased a new position in Amazon.com in the second quarter valued at about $16,341,405,000. Amundi grew its stake in Amazon.com by 3.9% during the 2nd quarter. Amundi now owns 63,822,242 shares of the e-commerce giant’s stock valued at $15,211,393,000 after purchasing an additional 2,421,739 shares in the last quarter. Finally, Invesco Ltd. grew its stake in Amazon.com by 3.3% during the 4th quarter. Invesco Ltd. now owns 59,604,857 shares of the e-commerce giant’s stock valued at $13,757,993,000 after purchasing an additional 1,879,630 shares in the last quarter. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Amazon.com Company Profile

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.