Amazon.com (NASDAQ:AMZN) Shares Down 1.1% – Here’s What Happened

Amazon.com, Inc. (NASDAQ:AMZN) shares dropped 1.1% during trading on Wednesday . The stock traded as low as $242.45 and last traded at $244.85. Approximately 33,005,118 shares traded hands during mid-day trading, a decline of 33% from the average daily volume of 49,429,484 shares. The stock had previously closed at $247.55.

More Amazon.com News

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

• Positive Sentiment: Bank of America expects Amazon Web Services growth to accelerate and now sees Q2 revenue and operating profit above Wall Street estimates, which could support the stock into earnings. Amazon heads into earnings with Wall Street betting big on AWS
• Positive Sentiment: Analysts remain constructive on Amazon’s cloud and retail businesses, saying AWS and e-commerce both look strong heading into the quarter. “Retail and Cloud Both Look Strong,” says Top Analysts as Amazon (AMZN) Approaches Q2 Earnings
• Positive Sentiment: AWS got another boost from a strategic collaboration with Observe.AI, highlighting continued enterprise demand for AI services on Amazon’s cloud. Observe.AI Announces Strategic Collaboration Agreement with AWS to Accelerate Adoption of AI Agents for Customer Experience
• Neutral Sentiment: Amazon is cutting jobs in its AGI unit as it shifts resources toward customer-facing AI, a cost-control move that also signals tighter focus on higher-impact initiatives. Amazon cuts some jobs in its artificial general intelligence unit
• Neutral Sentiment: Amazon agreed to a workers’ rights deal with Italian unions, reducing labor uncertainty in Italy but likely having limited near-term impact on earnings. Amazon agrees workers’ rights deal with Italian unions

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Oppenheimer upped their price target on Amazon.com from $275.00 to $320.00 and gave the company an “outperform” rating in a research report on Thursday, April 30th. Wolfe Research reaffirmed an “outperform” rating and issued a $320.00 price objective (up from $245.00) on shares of Amazon.com in a report on Thursday, April 30th. UBS Group set a $315.00 target price on shares of Amazon.com in a research note on Monday, June 1st. Weiss Ratings raised shares of Amazon.com from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, May 6th. Finally, Sanford C. Bernstein restated an “outperform” rating and issued a $315.00 price target (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, Amazon.com presently has an average rating of “Moderate Buy” and a consensus target price of $312.91.

Amazon.com Stock Performance

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 stock has a 50 day moving average of $250.08 and a 200 day moving average of $236.20. The stock has a market capitalization of $2.63 trillion, a P/E ratio of 29.29, a P/E/G ratio of 1.86 and a beta of 1.46.

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

Insider Activity

In other Amazon.com news, SVP David Zapolsky sold 9,270 shares of the company’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 owned 41,190 shares in the company, valued at approximately $11,060,750.70. This represents a 18.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jonathan Rubinstein sold 3,849 shares of the firm’s stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $260.00, for a total transaction of $1,000,740.00. Following the completion of the sale, the director owned 78,654 shares in the company, valued at $20,450,040. The trade was a 4.67% 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. Insiders sold a total of 144,274 shares of company stock worth $38,716,204 over the last three months. Insiders own 8.90% of the company’s stock.

Institutional Trading of Amazon.com

Several hedge funds have recently added to or reduced their stakes in the business. Narwhal Capital Management lifted its holdings in Amazon.com by 2.3% in the 4th quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant’s stock worth $49,997,000 after purchasing an additional 4,854 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in Amazon.com by 21.0% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 24,653,228 shares of the e-commerce giant’s stock valued at $5,690,463,000 after purchasing an additional 4,275,942 shares during the last quarter. Weaver Capital Management LLC raised its position in shares of Amazon.com by 13.6% in the fourth quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant’s stock valued at $9,063,000 after purchasing an additional 4,713 shares during the period. Ethos Financial Group LLC lifted its stake in shares of Amazon.com by 9.6% in the fourth quarter. Ethos Financial Group LLC now owns 36,485 shares of the e-commerce giant’s stock worth $8,421,000 after buying an additional 3,196 shares during the last quarter. Finally, Culbertson A N & Co. Inc. lifted its stake in shares of Amazon.com by 8.6% in the fourth quarter. Culbertson A N & Co. Inc. now owns 30,444 shares of the e-commerce giant’s stock worth $7,027,000 after buying an additional 2,412 shares during the last quarter. Institutional investors own 72.20% of the company’s stock.

Amazon.com Company Profile

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.