Amazon.com (NASDAQ:AMZN) Shares Gap Down on Disappointing Earnings

Amazon.com, Inc. (NASDAQ:AMZN)’s share price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $222.69, but opened at $202.70. Amazon.com shares last traded at $202.24, with a volume of 30,061,311 shares trading hands.

The e-commerce giant reported $1.95 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.97 by ($0.02). The firm had revenue of $213.39 billion during the quarter, compared to analyst estimates of $211.02 billion. Amazon.com had a net margin of 11.06% and a return on equity of 23.62%. The company’s revenue for the quarter was up 13.6% on a year-over-year basis. During the same quarter last year, the business posted $1.86 earnings per share.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: AWS momentum and margin strength — AWS revenue topped expectations and operating margins widened, supporting Amazon’s long‑term cloud profitability thesis. AWS beats
• Positive Sentiment: Top‑line beat and core business resilience — Q4 net sales rose ~14% to $213.4B, showing strong retail and advertising performance that underpins cash generation for investments. Press release
• Neutral Sentiment: Analyst responses mixed but many remain constructive — Several firms trimmed price targets or adjusted modeling for heavier AI capex, while a number of analysts reiterated Buy/Outperform ratings citing AWS and long‑term AI upside. Analyst notes
• Negative Sentiment: Huge $200B 2026 capex guide shocked the market — Management said capex will jump materially (largely for AI data centers, chips, robotics and satellites), rekindling investor fear about near‑term cash flow, margins and the scale of the AI buildout. That guidance triggered heavy selling. Zacks: capex shock
• Negative Sentiment: Small EPS miss amplified by market risk‑off — Reported EPS missed by a hair (reported $1.95 vs. ~$1.97 consensus), and in the current environment even marginal misses + aggressive spending plans produce outsized stock moves. Blockonomi: earnings reaction
• Negative Sentiment: Broad tech/AI sell‑off amplified the move — Amazon’s capex news arrived amid heightened market sensitivity to AI spending across Big Tech, producing outsized volatility and premarket/after‑hours declines. Reuters: market reaction

Analyst Ratings Changes

AMZN has been the subject of a number of analyst reports. Stifel Nicolaus set a $300.00 price objective on shares of Amazon.com and gave the company a “buy” rating in a report on Tuesday, January 27th. Wells Fargo & Company reaffirmed an “overweight” rating and set a $301.00 target price (up from $295.00) on shares of Amazon.com in a research report on Monday, January 12th. Evercore ISI restated an “outperform” rating and set a $285.00 price target (down previously from $335.00) on shares of Amazon.com in a research note on Monday. Scotiabank reissued an “outperform” rating on shares of Amazon.com in a report on Friday. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of Amazon.com in a research note on Monday. One analyst has rated the stock with a Strong Buy rating, fifty-three have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $288.63.

Insider Buying and Selling

In other Amazon.com news, CEO Andrew R. Jassy sold 19,872 shares of the stock in a transaction on Friday, November 21st. The stock was sold at an average price of $216.94, for a total value of $4,311,031.68. Following the completion of the transaction, the chief executive officer owned 2,208,310 shares in the company, valued at approximately $479,070,771.40. This represents a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Keith Brian Alexander sold 900 shares of the 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 completion of the transaction, the director owned 7,170 shares of the company’s stock, valued at approximately $1,670,610. The trade was a 11.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 47,061 shares of company stock valued at $10,351,262 over the last 90 days. 9.70% of the stock is currently owned by company insiders.

Institutional Trading of Amazon.com

Several hedge funds have recently bought and sold shares of AMZN. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new stake in Amazon.com in the fourth quarter worth $77,777,000. PNC Financial Services Group Inc. grew its holdings in shares of Amazon.com by 0.5% in the fourth quarter. PNC Financial Services Group Inc. now owns 6,713,440 shares of the e-commerce giant’s stock worth $1,549,596,000 after purchasing an additional 35,003 shares during the last quarter. Saranac Partners Ltd increased its stake in Amazon.com by 64.1% in the 4th quarter. Saranac Partners Ltd now owns 40,807 shares of the e-commerce giant’s stock worth $9,425,000 after buying an additional 15,947 shares during the period. GSA Capital Partners LLP lifted its holdings in Amazon.com by 3.3% during the 4th quarter. GSA Capital Partners LLP now owns 11,372 shares of the e-commerce giant’s stock valued at $2,625,000 after buying an additional 365 shares in the last quarter. Finally, Tredje AP fonden boosted its position in Amazon.com by 8.6% in the 4th quarter. Tredje AP fonden now owns 2,832,690 shares of the e-commerce giant’s stock valued at $653,842,000 after buying an additional 223,524 shares during the period. Institutional investors own 72.20% of the company’s stock.

Amazon.com Stock Performance

The company has a current ratio of 1.01, a quick ratio of 0.80 and a debt-to-equity ratio of 0.14. The company has a market cap of $2.16 trillion, a PE ratio of 28.52, a P/E/G ratio of 1.45 and a beta of 1.37. The firm’s 50-day simple moving average is $233.97 and its two-hundred day simple moving average is $229.91.

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.