Amazon.com (NASDAQ:AMZN) Shares Down 1.2% – Should You Sell?

Amazon.com, Inc. (NASDAQ:AMZN) shares dropped 1.2% during trading on Friday . The stock traded as low as $233.59 and last traded at $238.55. Approximately 50,986,182 shares were traded during mid-day trading, an increase of 6% from the average daily volume of 48,038,730 shares. The stock had previously closed at $241.51.

Trending Headlines about Amazon.com

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

• Positive Sentiment: Amazon continues to strengthen its AI and cloud position, with reports saying its custom chips are seeing strong demand in AWS and that its growing AI capabilities could help drive long-term upside. Article Title
• Positive Sentiment: Amazon expanded its logistics moat by launching less-than-truckload freight service for all U.S. businesses, which could improve its supply-chain offering and deepen its role in e-commerce infrastructure. Article Title
• Positive Sentiment: Amazon also signed a major patent license agreement with InterDigital covering Prime Video and devices, removing legal uncertainty and reinforcing its streaming and devices ecosystem. Article Title
• Neutral Sentiment: Analysts and commentators remain constructive on Amazon’s long-term fundamentals, pointing to e-commerce efficiency, AWS AI dominance, and potential value in its Anthropic investment, but these are more long-term catalysts than immediate trading drivers. Article Title
• Negative Sentiment: Investors are worried about Amazon’s heavy AI capital spending and new borrowing, which may pressure margins and free cash flow before the payback shows up. Article Title
• Negative Sentiment: Broader market pieces note that Amazon has lagged the S&P 500 recently and that its valuation has been hit by concerns over capex and softer near-term sentiment. Article Title

Analyst Ratings Changes

AMZN has been the subject of several recent research reports. New Street Research boosted their price target on Amazon.com from $280.00 to $350.00 and gave the stock a “buy” rating in a research report on Monday, May 4th. Wells Fargo & Company set a $312.00 target price on Amazon.com and gave the company an “overweight” rating in a research report on Wednesday, May 20th. Raymond James Financial reaffirmed an “outperform” rating and set a $280.00 target price on shares of Amazon.com in a research report on Friday, May 1st. Citigroup reaffirmed a “market outperform” rating on shares of Amazon.com in a research report on Monday, June 1st. Finally, DA Davidson upped their target price on Amazon.com from $175.00 to $250.00 and gave the company a “neutral” rating in a research report on Thursday, April 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Amazon.com presently has a consensus rating of “Moderate Buy” and an average price target of $312.78.

Amazon.com Trading Down 1.2%

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.18. The company has a 50 day simple moving average of $252.93 and a two-hundred day simple moving average of $233.59. The firm has a market cap of $2.57 trillion, a PE ratio of 28.53, a P/E/G ratio of 1.78 and a beta of 1.44.

Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share for the quarter, beating the consensus estimate of $1.63 by $1.15. The business had revenue of $181.52 billion for the quarter, compared to the consensus estimate of $177.28 billion. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The company’s quarterly revenue was up 16.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.59 EPS. Analysts expect that Amazon.com, Inc. will post 7.71 EPS for the current fiscal year.

Insider Buying and Selling at Amazon.com

In other Amazon.com news, CEO Andrew R. Jassy sold 20,000 shares of the business’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $263.42, for a total transaction of $5,268,400.00. Following the sale, the chief executive officer owned 2,205,766 shares in the company, valued at approximately $581,042,879.72. The trade was a 0.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the business’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $268.53, for a total value of $2,489,273.10. Following the sale, the senior vice president owned 41,190 shares in the company, valued at approximately $11,060,750.70. The trade was a 18.37% 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. In the last quarter, insiders have sold 195,774 shares of company stock worth $51,614,434. 8.90% of the stock is owned by corporate insiders.

Institutional Trading of Amazon.com

A number of hedge funds have recently modified their holdings of the stock. S&A Financial Services Inc. purchased a new stake in shares of Amazon.com in the first quarter worth about $1,043,000. LFG Wealth Partners LLC boosted its stake in shares of Amazon.com by 16.5% in the first quarter. LFG Wealth Partners LLC now owns 32,803 shares of the e-commerce giant’s stock worth $6,832,000 after buying an additional 4,638 shares during the last quarter. Curry Webb Wealth Management LLC purchased a new stake in shares of Amazon.com in the first quarter worth about $442,000. Farmers National Bank boosted its stake in shares of Amazon.com by 3.3% in the first quarter. Farmers National Bank now owns 20,098 shares of the e-commerce giant’s stock worth $4,186,000 after buying an additional 637 shares during the last quarter. Finally, Evansbrook LLC boosted its stake in shares of Amazon.com by 2.6% in the first quarter. Evansbrook LLC now owns 7,453 shares of the e-commerce giant’s stock worth $1,552,000 after buying an additional 188 shares during the last quarter. Hedge funds and other institutional investors 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.