Amazon.com (NASDAQ:AMZN) Stock Price Crosses Below Two Hundred Day Moving Average Following Weak Earnings

Shares of Amazon.com, Inc. (NASDAQ:AMZN) passed below its 200-day moving average during trading on Friday following a dissappointing earnings announcement. The stock has a 200-day moving average of $243.09 and traded as low as $229.36. Amazon.com shares last traded at $240.35, with a volume of 104,747,107 shares traded.

The e-commerce giant reported $1.89 earnings per share for the quarter, missing the consensus estimate of $1.97 by ($0.08). The business had revenue of $201.94 billion for the quarter, compared to the consensus estimate of $202.22 billion. Amazon.com had a net margin of 16.90% and a return on equity of 16.94%. Amazon.com’s revenue was up 12.1% compared to the same quarter last year. During the same period in the previous year, the business posted $1.95 EPS.

Key Amazon.com News

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

• Positive Sentiment: AWS growth accelerated significantly. Amazon Web Services revenue rose 39% to approximately $46 billion, its fastest growth in nearly five years. Management said AWS could grow more than 40% annually in 2027 and 2028, supported by AI demand, a large backlog and rising cloud workloads. Analysts including JPMorgan, Canaccord, Monness and RBC maintained bullish ratings or targets, viewing AWS as a potential long-term, trillion-dollar business. AWS growth hits 39 percent
• Positive Sentiment: Amazon continues expanding its AI and adjacent businesses. The company plans to sell its Trainium AI chips externally by late 2027, while Amazon Pharmacy users increased more than 60% year over year and Prime Video reportedly reached profitability. Management also highlighted longer-term opportunities in retail automation, satellite internet and AI infrastructure. Amazon Trainium AI chips
• Neutral Sentiment: Analyst sentiment remains broadly constructive, but targets were trimmed. Several firms reaffirmed Buy or Outperform ratings, with targets generally well above the current trading level. However, Wells Fargo, Morgan Stanley, Wedbush, Scotiabank, Cantor Fitzgerald and others lowered targets, signaling reduced near-term confidence after the earnings release. Amazon price target changes
• Negative Sentiment: Amazon missed both major Q3 estimates. Earnings per share came in at $1.89 versus roughly $1.97–$2.01 expected, while revenue was $201.94 billion compared with about $202.2 billion anticipated. Fourth-quarter revenue guidance was also viewed as soft, raising concerns about holiday-season retail demand. Amazon fourth-quarter guidance
• Negative Sentiment: AI investment is pressuring cash flow and leverage. Amazon spent about $77 billion on property and equipment in Q3 and continues targeting approximately $220 billion in 2026 capital expenditures. Trailing free cash flow fell to a $42.4 billion deficit, while long-term debt increased substantially. Investors are questioning when the spending will generate adequate returns, overshadowing AWS’s strong growth. Amazon AI spending concerns
• Negative Sentiment: Broader technology-sector weakness amplified the selling. Amazon’s report contributed to a wider Nasdaq decline as investors reconsidered whether massive AI infrastructure spending across Big Tech can produce timely profits. Concerns about AI-related debt, cash burn and valuation affected sentiment beyond Amazon itself. Nasdaq and AI spending concerns

Analyst Ratings Changes

A number of research firms have recently weighed in on AMZN. Bank of America restated a “buy” rating and set a $317.00 price target on shares of Amazon.com in a report on Friday. KeyCorp set a $345.00 price objective on shares of Amazon.com and gave the stock an “overweight” rating in a report on Friday. Piper Sandler reissued an “overweight” rating on shares of Amazon.com in a research report on Friday. Robert W. Baird set a $310.00 target price on Amazon.com and gave the company an “outperform” rating in a report on Friday, July 31st. Finally, DA Davidson set a $250.00 price target on Amazon.com and gave the stock a “neutral” rating in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $320.86.

Insider Transactions at Amazon.com

In other Amazon.com news, CEO Andrew R. Jassy sold 20,000 shares of the company’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction 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 $579,085,751.66. This represents a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian T. Olsavsky sold 6,172 shares of the firm’s stock in a transaction dated 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 completion of the sale, the chief financial officer directly owned 109,207 shares in the company, valued at approximately $28,427,674.17. This represents a 5.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 71,589 shares of company stock worth $18,580,515. Corporate insiders own 8.90% of the company’s stock.

Hedge Funds Weigh In On Amazon.com

Large investors have recently made changes to their positions in the business. 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 valued at $95,504,904,000 after purchasing an additional 21,398,025 shares during the period. Bank of America Corp DE acquired a new position in shares of Amazon.com in the second quarter valued at $22,218,775,000. Bank of New York Mellon Corp bought a new position in Amazon.com in the second quarter worth $16,341,405,000. Amundi lifted its position in Amazon.com by 3.9% in the second quarter. Amundi now owns 63,822,242 shares of the e-commerce giant’s stock worth $15,211,393,000 after purchasing an additional 2,421,739 shares during the period. Finally, Legal & General Group Plc bought a new position in Amazon.com in the second quarter worth $12,831,376,000. Institutional investors and hedge funds own 72.20% of the company’s stock.

Amazon.com Price Performance

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’s 50 day simple moving average is $254.28 and its two-hundred day simple moving average is $243.09. The stock has a market cap of $2.59 trillion, a price-to-earnings ratio of 19.43, a P/E/G ratio of 1.89 and a beta of 1.45.

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company founded by Jeff Bezos in 1994. Originally launched as an online bookstore, the company has expanded into a broad digital marketplace offering consumer products across numerous categories, including electronics, household goods, apparel, groceries and other merchandise. Amazon also sells products under its own brands and provides logistics, fulfillment and delivery services that support its retail operations and third-party sellers.

The company’s principal businesses include online and physical retail, Amazon Web Services (AWS), digital advertising, subscription services and consumer technology.