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

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price fell 2% during mid-day trading on Thursday . The company traded as low as $248.00 and last traded at $249.89. 44,742,488 shares traded hands during mid-day trading, a decline of 10% from the average daily volume of 49,882,773 shares. The stock had previously closed at $254.96.

More Amazon.com News

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

• Positive Sentiment: Wedbush initiated coverage with an Outperform rating and a $293 price target, citing Amazon’s attractive position in the AI infrastructure buildout and suggesting meaningful upside from current levels. Amazon.com is now covered by Wedbush. They set an “outperform” rating and a $293.00 price target on the stock.
• Positive Sentiment: KeyBanc also turned more constructive, arguing Amazon’s heavy capital spending on AI data centers is a feature, not a bug, because AWS demand is re-accelerating and long-term compute demand remains strong. Amazon’s AI Arms Race: KeyBanc Says Massive Capex Is a Feature, Not a Bug
• Positive Sentiment: Multiple reports highlighted Amazon as a top AI/hyperscaler pick, with analysts saying the company may have a cost advantage in the AI data-center race and could benefit from expanding cloud and chip opportunities. In the AI Data Center Buildout, Amazon.com Inc (AMZN) Has a Cost Advantage
• Positive Sentiment: Retail and Prime Day coverage suggested U.S. consumer spending remains resilient, with Amazon’s summer promotion helping support online sales momentum heading into back-to-school season. Retail sales get a boost from car buyers and Amazon Prime Day. The economy hasn’t lost its mojo.
• Neutral Sentiment: Some articles noted concerns about Amazon’s aggressive AI capex, including the possibility of weaker free cash flow, but these worries were largely countered by upbeat analyst commentary.
• Neutral Sentiment: Amazon also drew attention for a senior AWS executive departure and for a new satellite-internet move in South Africa, but these look more incremental than stock-moving compared with the AI and valuation headlines.

Wall Street Analysts Forecast Growth

AMZN has been the topic of several recent analyst reports. DA Davidson increased their price objective on shares of Amazon.com from $175.00 to $250.00 and gave the stock a “neutral” rating in a report on Thursday, April 30th. Roth Capital boosted their target price on shares of Amazon.com from $285.00 to $300.00 and gave the company a “buy” rating in a report on Thursday, April 30th. BMO Capital Markets upped their price target on shares of Amazon.com from $310.00 to $315.00 and gave the stock an “outperform” rating in a research report on Thursday, April 23rd. Evercore increased their price target on shares of Amazon.com from $285.00 to $315.00 and gave the stock an “outperform” rating in a research note on Thursday, April 30th. Finally, Deutsche Bank Aktiengesellschaft lifted their price target on shares of Amazon.com from $290.00 to $315.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Fifty-seven equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Amazon.com presently has an average rating of “Moderate Buy” and a consensus target price of $312.76.

Amazon.com Stock Performance

The stock’s 50-day moving average is $251.76 and its 200-day moving average is $235.73. The stock has a market cap of $2.69 trillion, a price-to-earnings ratio of 29.89, a P/E/G ratio of 1.85 and a beta of 1.46. The company has a current ratio of 1.18, a quick ratio of 1.01 and a debt-to-equity ratio of 0.27.

Amazon.com (NASDAQ:AMZN) last announced its quarterly earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share for the quarter, beating analysts’ consensus estimates of $1.63 by $1.15. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The firm had revenue of $181.52 billion for the quarter, compared to analysts’ expectations of $177.28 billion. During the same period in the previous year, the company posted $1.59 earnings per share. Amazon.com’s revenue was up 16.6% compared to the same quarter last year. On average, analysts expect that Amazon.com, Inc. will post 7.75 EPS for the current year.

Insider Buying and Selling at Amazon.com

In related news, CEO Douglas J. Herrington sold 27,500 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $275.00, for a total value of $7,562,500.00. Following the completion of the sale, the chief executive officer directly owned 471,361 shares in the company, valued at approximately $129,624,275. This represents a 5.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 firm’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 completion of the transaction, the senior vice president directly owned 41,190 shares in the company, valued at $11,060,750.70. This trade represents a 18.37% 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. In the last three months, insiders have sold 175,274 shares of company stock worth $46,621,204. Corporate insiders own 8.90% of the company’s stock.

Institutional Investors Weigh In On Amazon.com

Large investors have recently modified their holdings of the stock. Trust Asset Management LLC grew its holdings in Amazon.com by 3.3% during the 2nd quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock valued at $26,000 after purchasing an additional 3,414 shares in the last quarter. MilWealth Group LLC lifted its holdings in Amazon.com by 79.0% in the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock worth $41,000 after buying an additional 79 shares in the last quarter. Lifetime Wealth Management P.C. purchased a new position in Amazon.com in the 4th quarter valued at about $45,000. Elkhorn Partners Limited Partnership boosted its position in Amazon.com by 900.0% in the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock valued at $46,000 after buying an additional 180 shares during the last quarter. Finally, Fairway Wealth LLC grew its stake in shares of Amazon.com by 95.6% during the fourth quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant’s stock valued at $51,000 after acquiring an additional 108 shares in the last quarter. 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.