Amazon.com (NASDAQ:AMZN) Shares Down 1.5% – What’s Next?

Shares of Amazon.com, Inc. (NASDAQ:AMZN) dropped 1.5% during trading on Thursday . The company traded as low as $255.02 and last traded at $256.26. 35,654,552 shares traded hands during trading, a decline of 27% from the average daily volume of 48,630,262 shares. The stock had previously closed at $260.28.

Key Amazon.com News

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

• Positive Sentiment: Evercore raises target on agentic AI potential. Evercore ISI lifted its AMZN price target to $355 from $315.16 and maintained an Outperform rating. The firm believes agentic AI could improve retail growth and strengthen trends across Amazon Web Services (AWS), advertising and e-commerce. Why is Amazon stock surging 4% today
• Positive Sentiment: Expanded Nvidia partnership reinforces AI demand. Amazon plans to add 2 million Nvidia GPUs to its data centers in 2027–2028, bringing its announced commitment to roughly 3 million chips. The spending signals strong expected demand for AWS AI capacity and helped distinguish Amazon positively within the AI infrastructure sector. Amazon just tripled its order of Nvidia chips over surging demand
• Positive Sentiment: AWS and AI economics remain major growth catalysts. Reports cited approximately 37% AWS revenue growth to $42.2 billion in the second quarter, while Amazon’s AI and chip businesses each reached annualized revenue run rates above $25 billion. Analysts also highlighted solid retail profitability and long-term cloud adoption. Amazon Stock: AI Investment Gains Momentum as AWS Revenue Surges
• Positive Sentiment: New distribution and energy initiatives support the platform. Amazon plans to expand Prime Air drone delivery to nearly 500 U.S. cities by year-end, while new power-purchase agreements add 600 megawatts of carbon-free electricity and support data-center expansion. Amazon is about to six times its drone delivery footprint
• Neutral Sentiment: Amazon-backed Zoox is launching robotaxi service in San Francisco, creating a potential long-term growth option but adding an unproven business with significant execution requirements. Amazon-backed Zoox launches robotaxis in San Francisco
• Negative Sentiment: AI spending is raising return-on-investment concerns. The enlarged GPU commitment adds to an already substantial capital budget, prompting investors to question whether AWS demand and AI monetization will justify the cost. Amazon’s post-earnings gains have also partially faded, and billionaire Bill Ackman reportedly shifted from Amazon to Microsoft.
• Negative Sentiment: California litigation over alleged price-fixing remains an overhang, although a judge indicated the state’s request to block Amazon’s practices would likely be denied. Judge likely to deny California’s bid to stop Amazon’s alleged price fixing

Analysts Set New Price Targets

AMZN has been the topic of a number of research reports. Mizuho set a $330.00 price target on shares of Amazon.com and gave the company an “outperform” rating in a research note on Friday, July 31st. Oppenheimer restated an “outperform” rating on shares of Amazon.com in a report on Friday, July 31st. Barclays reiterated an “overweight” rating and set a $365.00 target price (up from $330.00) on shares of Amazon.com in a research note on Friday, July 31st. Needham & Company LLC restated a “buy” rating and issued a $300.00 price target on shares of Amazon.com in a research note on Friday, July 31st. Finally, Phillip Securities cut Amazon.com from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $323.09.

Amazon.com Stock Up 4.0%

The firm has a 50 day simple moving average of $251.62 and a two-hundred day simple moving average of $240.45. The stock has a market capitalization of $2.87 trillion, a P/E ratio of 21.43, a PEG ratio of 1.71 and a beta of 1.45. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23.

Amazon.com (NASDAQ:AMZN) last issued its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.82 by $3.93. The company had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The company’s revenue for the quarter was up 19.6% compared to the same quarter last year. During the same quarter last year, the company posted $1.68 EPS. On average, equities research analysts expect that Amazon.com, Inc. will post 8.05 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Andrew R. Jassy sold 20,000 shares of Amazon.com stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 2,235,766 shares of the company’s stock, valued at approximately $579,085,751.66. The trade was a 0.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the completion of the transaction, the senior vice president directly owned 41,190 shares of the company’s stock, valued at approximately $10,699,926.30. The trade was a 18.35% 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 71,589 shares of company stock worth $18,580,205 in the last quarter. Corporate insiders own 8.90% of the company’s stock.

Institutional Trading of Amazon.com

A number of hedge funds have recently made changes to their positions in AMZN. Trust Asset Management LLC grew its stake in shares of Amazon.com by 3.3% in the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock worth $26,000 after purchasing an additional 3,414 shares during the last quarter. TOP Private Wealth LLC. acquired a new position in Amazon.com during the 2nd quarter worth about $29,000. Bard Associates Inc. bought a new stake in shares of Amazon.com in the 2nd quarter valued at about $32,000. Longfellow Investment Management Co. LLC bought a new stake in shares of Amazon.com in the 2nd quarter valued at about $33,000. Finally, MilWealth Group LLC increased its stake in shares of Amazon.com by 79.0% in the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after buying an additional 79 shares during the period. 72.20% of the stock is owned by institutional investors and hedge funds.

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.