Amazon.com (NASDAQ:AMZN) Trading Down 1% – Should You Sell?

Shares of Amazon.com, Inc. (NASDAQ:AMZN) traded down 1% during mid-day trading on Friday . The stock traded as low as $237.64 and last traded at $239.30. 45,502,913 shares were traded during trading, an increase of 8% from the average session volume of 42,029,996 shares. The stock had previously closed at $241.73.

More Amazon.com News

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

• Positive Sentiment: Amazon is reportedly in talks to invest up to $50 billion in OpenAI — a deal that would deepen Amazon’s AI relationships, drive AWS capacity demand and signal leadership in the AI era; this is being read as a long‑term growth catalyst. Amazon in Talks to Invest Up to $50 Billion in OpenAI
• Positive Sentiment: Analysts and big managers remain supportive — Telsey Advisory reiterated an “outperform” rating with a $300 price target and Tsai Capital highlighted AMZN as a high‑conviction idea, both underpinning bullish investor sentiment. Telsey Reaffirms Outperform on Amazon
• Positive Sentiment: AWS continues to land enterprise deals and collaborations (example: NTT DATA strategic agreement), which supports recurring cloud revenue growth independent of retail cycles. NTT DATA Signs Strategic Collaboration Agreement with AWS
• Neutral Sentiment: Amazon is closing its Go and Fresh physical stores and refocusing grocery around online/Whole Foods — a strategic retrenchment that cuts cash burn but reduces brick‑and‑mortar exposure. Amazon is closing its futuristic Go and Fresh stores
• Neutral Sentiment: Macro/sector context: Microsoft’s post‑earnings pullback highlights hyperscaler valuation sensitivity — investors may reprice capital‑intensive AI buildouts, a theme that affects AMZN too. Microsoft Drops After Earnings—Why the Bull Case Holds
• Negative Sentiment: Amazon announced further mass layoffs (about 16,000 corporate roles total; ~1,400 in Seattle, 700 in Bellevue) — cost savings can boost margins but large cuts raise execution, morale and public‑relations risks. Amazon Job Cuts Deliver Another Blow to Seattle Area’s Tech Workforce
• Negative Sentiment: Reputational/regulatory risk: reports that Amazon’s AI training datasets contained high volumes of illegal/abusive content could prompt compliance costs, scrutiny, or slower AI rollouts. Amazon Stock Falls as AI Training Data Reveals “High Volume” of Child Abuse Content
• Negative Sentiment: Some large investors have trimmed AMZN positions (reports of Viking/other manager selling), and Bank of America recently lowered its price target — signals that institutional positioning may be shifting and could pressure near‑term sentiment. Billionaire Ole Andreas Halvorsen Dumped His Stakes in Nvidia and Amazon Bank of America Lowers Amazon Price Target

Analyst Ratings Changes

A number of brokerages have issued reports on AMZN. Rothschild & Co Redburn lowered their price target on Amazon.com from $250.00 to $230.00 and set a “neutral” rating on the stock in a research report on Wednesday, January 21st. Raymond James Financial decreased their target price on Amazon.com from $275.00 to $260.00 and set an “outperform” rating on the stock in a research report on Thursday, January 15th. TD Cowen reissued a “buy” rating on shares of Amazon.com in a research note on Tuesday, January 13th. JPMorgan Chase & Co. restated a “buy” rating and set a $305.00 price objective on shares of Amazon.com in a research report on Friday, December 12th. Finally, Redburn Partners set a $230.00 target price on shares of Amazon.com in a research report on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, fifty-four have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $295.91.

Amazon.com Price Performance

The firm has a market capitalization of $2.56 trillion, a PE ratio of 33.80, a price-to-earnings-growth ratio of 1.51 and a beta of 1.37. The stock’s 50 day simple moving average is $233.50 and its two-hundred day simple moving average is $229.67. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.80 and a current ratio of 1.01.

Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings results on Thursday, October 30th. The e-commerce giant reported $1.95 EPS for the quarter, beating the consensus estimate of $1.57 by $0.38. Amazon.com had a return on equity of 23.62% and a net margin of 11.06%.The firm had revenue of $180.17 billion during the quarter, compared to analysts’ expectations of $177.53 billion. During the same quarter last year, the firm earned $1.43 earnings per share. The business’s revenue for the quarter was up 13.4% on a year-over-year basis. On average, sell-side analysts forecast that Amazon.com, Inc. will post 6.31 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Douglas J. Herrington sold 2,500 shares of the firm’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $233.22, for a total transaction of $583,050.00. Following the completion of the sale, the chief executive officer directly owned 505,934 shares in the company, valued at approximately $117,993,927.48. This trade represents a 0.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Keith Brian Alexander sold 900 shares of Amazon.com stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $233.00, for a total transaction of $209,700.00. Following the transaction, the director directly owned 7,170 shares in the company, valued at $1,670,610. This trade represents a 11.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 49,561 shares of company stock worth $10,989,862. 9.70% of the stock is currently owned by company insiders.

Institutional Trading of Amazon.com

Hedge funds and other institutional investors have recently made changes to their positions in the company. Fairway Wealth LLC raised its holdings in Amazon.com by 113.2% in the 3rd quarter. Fairway Wealth LLC now owns 113 shares of the e-commerce giant’s stock valued at $25,000 after buying an additional 60 shares during the period. Sellwood Investment Partners LLC acquired a new stake in shares of Amazon.com during the third quarter valued at about $27,000. Bridge Generations Wealth Management LLC raised its stake in shares of Amazon.com by 2,330.0% in the 3rd quarter. Bridge Generations Wealth Management LLC now owns 243 shares of the e-commerce giant’s stock valued at $53,000 after acquiring an additional 233 shares during the period. Cooksen Wealth LLC lifted its holdings in shares of Amazon.com by 23.5% in the 2nd quarter. Cooksen Wealth LLC now owns 247 shares of the e-commerce giant’s stock worth $54,000 after acquiring an additional 47 shares during the last quarter. Finally, PayPay Securities Corp boosted its position in shares of Amazon.com by 62.3% during the 3rd quarter. PayPay Securities Corp now owns 250 shares of the e-commerce giant’s stock worth $55,000 after purchasing an additional 96 shares during the period. Institutional investors and hedge funds own 72.20% of the company’s stock.

About Amazon.com

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.