Amazon.com (NASDAQ:AMZN) Shares Down 1.8% – Here’s Why

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price traded down 1.8% on Tuesday . The company traded as low as $260.70 and last traded at $256.5110. 53,317,766 shares changed hands during trading, an increase of 44% from the average session volume of 36,973,208 shares. The stock had previously closed at $261.26.

Amazon.com News Roundup

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

• Positive Sentiment: Amazon’s earlier-than-usual four-day Prime Day should boost member engagement and near-term e-commerce sales, while new Alexa AI features may improve shopping conversion and reinforce Amazon’s AI-driven growth story. Reuters: Amazon moves Prime Day back to June, keeps it a four-day event
• Positive Sentiment: Several recent commentaries remain constructive on Amazon’s fundamentals, citing AI opportunities, AWS momentum, and new supply-chain services as potential profit drivers. Motley Fool: Great News for Amazon Stock Investors!
• Positive Sentiment: Bank of America said Amazon’s LEO satellite project is approaching revenue generation, adding another long-term growth avenue beyond retail and AWS. Proactive Investors: Amazon’s satellite internet project seen as significant revenue opportunity by Bank of America
• Neutral Sentiment: Analysts and media pieces continue to debate whether Amazon’s strong multi-year rally leaves the stock fully valued, which may limit upside in the short term even if the business remains healthy. Yahoo Finance: Is It Too Late To Consider Amazoncom (AMZN) After Its Strong Multi Year Rally?
• Negative Sentiment: Amazon is facing fresh regulatory and legal pressure, including EU cloud procurement scrutiny and a privacy class-action lawsuit tied to Ring facial-recognition features, both of which could create headline risk for AMZN. Yahoo Finance: Amazon Faces Data Scrutiny While Shares Trade Below Analyst Valuation Targets
• Negative Sentiment: News that Stanley Druckenmiller sharply reduced Amazon exposure may pressure sentiment a bit, even though it reflects one investor’s portfolio move rather than a change in Amazon’s operating outlook. Motley Fool: Billionaire Stanley Druckenmiller Dumped 94% of His Fund’s Amazon Stake

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. Tigress Financial upped their target price on Amazon.com from $305.00 to $315.00 and gave the stock a “buy” rating in a research report on Wednesday, March 25th. HSBC increased their price target on Amazon.com from $280.00 to $310.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Benchmark increased their price target on Amazon.com from $275.00 to $370.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. The Goldman Sachs Group reissued a “buy” rating and issued a $325.00 price target (up from $275.00) on shares of Amazon.com in a research report on Thursday, April 30th. Finally, Wolfe Research reissued an “outperform” rating and issued a $320.00 price target (up from $245.00) on shares of Amazon.com in a research report on Thursday, April 30th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, Amazon.com has an average rating of “Moderate Buy” and an average price target of $312.52.

Amazon.com Trading Down 1.8%

The stock has a market capitalization of $2.76 trillion, a PE ratio of 30.68, a price-to-earnings-growth ratio of 2.03 and a beta of 1.45. The firm has a 50-day moving average price of $246.43 and a 200-day moving average price of $232.58. 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 posted its quarterly earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share for the quarter, topping the consensus estimate of $1.63 by $1.15. The company had revenue of $181.52 billion during the quarter, compared to the consensus estimate 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 quarter in the prior year, the company earned $1.59 EPS. As a group, equities analysts forecast that Amazon.com, Inc. will post 7.71 EPS for the current fiscal year.

Insider Buying and Selling

In other Amazon.com news, SVP David Zapolsky sold 9,270 shares of the firm’s stock in a transaction dated Friday, May 22nd. The stock was 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 $11,060,750.70. This trade represents a 18.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew R. Jassy sold 31,352 shares of the firm’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $275.00, for a total value of $8,621,800.00. Following the completion of the transaction, the chief executive officer owned 2,175,766 shares of the company’s stock, valued at approximately $598,335,650. This represents a 1.42% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 194,774 shares of company stock worth $51,348,244 in the last 90 days. 8.90% of the stock is owned by company insiders.

Institutional Trading of Amazon.com

A number of large investors have recently modified their holdings of AMZN. American Capital Advisory LLC raised its holdings in shares of Amazon.com by 63.9% during the third quarter. American Capital Advisory LLC now owns 8,081 shares of the e-commerce giant’s stock valued at $1,774,000 after purchasing an additional 3,152 shares during the last quarter. Compagnie Lombard Odier SCmA purchased a new stake in Amazon.com in the third quarter worth approximately $451,642,000. Narwhal Capital Management grew its position 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 period. Weaver Capital Management LLC raised its stake in Amazon.com by 13.6% during the 4th quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant’s stock valued at $9,063,000 after buying an additional 4,713 shares during the last quarter. Finally, Ethos Financial Group LLC raised its stake in Amazon.com by 9.6% during the 4th quarter. Ethos Financial Group LLC now owns 36,485 shares of the e-commerce giant’s stock valued at $8,421,000 after buying an additional 3,196 shares during the last quarter. Institutional investors 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.