Amazon.com (NASDAQ:AMZN) Trading Down 1.3% – Time to Sell?

Shares of Amazon.com, Inc. (NASDAQ:AMZN) fell 1.3% during trading on Thursday . The stock traded as low as $205.35 and last traded at $207.92. 47,269,699 shares were traded during mid-day trading, a decline of 12% from the average session volume of 53,878,695 shares. The stock had previously closed at $210.64.

Trending Headlines about Amazon.com

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

• Positive Sentiment: Amazon committed to invest up to $50 billion in OpenAI and deepen a strategic partnership that expands cloud & chip relationships — a major long‑term accelerator for AWS revenue and product differentiation. Amazon to invest $50 billion in OpenAI
• Positive Sentiment: The OpenAI tie includes tighter commercial integration (AWS as a key cloud partner and OpenAI buying Amazon-made AI chips), which supports higher‑margin cloud exposure and possible cross‑sell into Amazon consumer products and services. How Amazon’s massive stake in OpenAI could boost its AI and cloud businesses
• Positive Sentiment: Amazon is expanding data‑center capacity (announced $12B Louisiana investment) to support cloud growth and AI workloads — a direct investment in AWS scale that should underpin long‑term revenue. Amazon.com Data Center Push Continues with $12B Investment in Louisiana
• Positive Sentiment: Notable investors and funds (e.g., Stanley Druckenmiller, some ARK activity) have added to Amazon exposure this quarter, signaling continued institutional conviction in AMZN as an AI/cloud play. Druckenmiller buys Amazon
• Neutral Sentiment: Short‑interest reports in the feed are effectively zero (days‑to‑cover ~0) and appear non‑informative — no clear short squeeze signal from these data entries.
• Negative Sentiment: Market concerns about massive near‑term spending and capex — reports on a potential $200B capex surge and shrinking free cash flow expectations have pressured the stock and prompted investor caution. Will heavy capex spending weigh on Amazon’s AI ambitions?
• Negative Sentiment: Legal risk: a U.K. appeals court cleared the way for large collective suits from sellers/consumers alleging anticompetitive conduct (potentially ~£4bn), creating a headline legal overhang. Amazon refused permission to appeal go-ahead for UK lawsuits
• Negative Sentiment: Analyst / market signals: Evercore trimmed its price target (from $335 to $285), and there are reports of insider stock sales — both can weigh on sentiment even if strategic fundamentals remain intact. Evercore adjusts price target on Amazon Insider Selling: CEO sells $3.6M

Wall Street Analyst Weigh In

A number of brokerages have issued reports on AMZN. BMO Capital Markets reiterated an “outperform” rating and issued a $310.00 price target (up from $304.00) on shares of Amazon.com in a report on Tuesday, February 3rd. Wolfe Research reiterated an “outperform” rating and issued a $275.00 target price on shares of Amazon.com in a research report on Monday, January 5th. Citizens Jmp raised their price target on Amazon.com from $300.00 to $315.00 and gave the company an “outperform” rating in a report on Monday, February 2nd. Cantor Fitzgerald set a $250.00 price objective on Amazon.com and gave the stock an “overweight” rating in a research note on Friday, February 6th. Finally, Rothschild & Co Redburn set a $230.00 target price on Amazon.com in a research report on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, fifty-three have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $287.29.

Amazon.com Price Performance

The stock’s 50-day simple moving average is $226.66 and its two-hundred day simple moving average is $227.72. The firm has a market cap of $2.25 trillion, a P/E ratio of 29.29, a PEG ratio of 1.56 and a beta of 1.37. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.05 and a quick ratio of 0.88.

Amazon.com (NASDAQ:AMZN) last issued its quarterly earnings results on Thursday, February 5th. The e-commerce giant reported $1.95 EPS for the quarter, missing the consensus estimate of $1.97 by ($0.02). The firm had revenue of $213.39 billion for the quarter, compared to the consensus estimate of $211.02 billion. Amazon.com had a net margin of 10.83% and a return on equity of 21.87%. The business’s revenue for the quarter was up 13.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.86 earnings per share. Equities research analysts forecast that Amazon.com, Inc. will post 6.31 earnings per share for the current fiscal year.

Insider Transactions at Amazon.com

In related news, CEO Matthew S. Garman sold 17,751 shares of the business’s stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $205.22, for a total transaction of $3,642,860.22. Following the completion of the transaction, the chief executive officer owned 9,405 shares in the company, valued at $1,930,094.10. The trade was a 65.37% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Andrew R. Jassy sold 19,872 shares of the company’s stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $205.18, for a total value of $4,077,336.96. Following the completion of the transaction, the chief executive officer directly owned 2,238,118 shares in the company, valued at $459,217,051.24. This trade represents a 0.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 73,186 shares of company stock valued at $15,067,539. Company insiders own 9.70% of the company’s stock.

Hedge Funds Weigh In On Amazon.com

Hedge funds have recently added to or reduced their stakes in the stock. Wilson Asset Management International PTY Ltd. bought a new position in shares of Amazon.com in the second quarter worth approximately $11,102,000. American Capital Advisory LLC boosted its position in Amazon.com by 63.9% during the 3rd quarter. American Capital Advisory LLC now owns 8,081 shares of the e-commerce giant’s stock valued at $1,774,000 after buying an additional 3,152 shares during the period. ARK Investment Management LLC boosted its position in Amazon.com by 8.3% during the 2nd quarter. ARK Investment Management LLC now owns 1,140,494 shares of the e-commerce giant’s stock valued at $250,213,000 after buying an additional 86,978 shares during the period. Buckhead Capital Management LLC grew its holdings in Amazon.com by 16.1% in the 2nd quarter. Buckhead Capital Management LLC now owns 28,407 shares of the e-commerce giant’s stock worth $6,232,000 after acquiring an additional 3,948 shares during the last quarter. Finally, Alpha Wealth Funds LLC increased its position in shares of Amazon.com by 172.8% in the second quarter. Alpha Wealth Funds LLC now owns 3,012 shares of the e-commerce giant’s stock valued at $667,000 after acquiring an additional 1,908 shares during the period. 72.20% of the stock is currently owned by institutional investors.

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.