Amazon.com (NASDAQ:AMZN) Stock Price Down 1.9% – Time to Sell?

Shares of Amazon.com, Inc. (NASDAQ:AMZN) were down 1.9% during mid-day trading on Tuesday . The stock traded as low as $251.93 and last traded at $254.92. Approximately 31,387,269 shares traded hands during trading, a decline of 35% from the average daily volume of 48,520,371 shares. The stock had previously closed at $259.77.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: AWS strengthens its AI position: Amazon Web Services is expanding its relationship with Nvidia, including plans to deploy two million additional GPUs, custom chips and Nvidia networking technology. AWS is also making a $5.3 billion infrastructure commitment in Saudi Arabia and adding OpenAI, Meta and Anthropic models to AWS GovCloud, potentially supporting government and enterprise AI demand. Nvidia Expands AI Partnership With Amazon Web Services
• Positive Sentiment: New commerce channels could boost advertising and sales: YouTube joined Amazon’s Shopping Affiliate Program, allowing eligible creators to tag Amazon products in videos and Shorts. The partnership could increase product discovery, social-commerce activity and advertising monetization. YouTube’s Amazon Deal Pushes Social Commerce Closer to Checkout
• Positive Sentiment: AI is being integrated across Amazon’s ecosystem: Alexa for Shopping can now notify customers about relevant product updates, while an Amazon Pharmacy integration with Solv will show prescription delivery options during appointment booking. These efforts could improve conversion and reinforce customer loyalty. Amazon Alexa Shopping Update
• Neutral Sentiment: Analysts remain optimistic: Citi reaffirmed a Buy rating and a $350 price target, while recent results showed revenue of $200.6 billion and AWS revenue growth of 36.7%. However, investors are increasingly focused on whether heavy AI capital spending will generate adequate future returns. Amazon Retains Buy Rating
• Negative Sentiment: FTC lawsuit is the key near-term overhang: The Federal Trade Commission and 22 states allege Amazon secretly manipulated advertising auctions and overcharged approximately 1.2 million advertisers by more than $20 billion. Potential penalties, refunds, changes to auction practices and pressure on advertising margins are weighing on investor sentiment. Amazon denies the allegations and says its system saved advertisers money. FTC Sues Amazon Over Advertising Practices
• Negative Sentiment: Additional selling signals are limited but unfavorable: A major institutional investor reportedly reduced its Amazon position, adding to pressure after the FTC announcement. Meanwhile, the broader AI infrastructure spending race—including Anthropic’s reported $35 billion commitment—raises concerns about escalating capital requirements across the sector. Amazon Major Investor Sells Shares

Wall Street Analyst Weigh In

AMZN has been the topic of several research reports. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $325.00 target price (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Robert W. Baird set a $310.00 price objective on Amazon.com and gave the company an “outperform” rating in a report on Friday, July 31st. Cantor Fitzgerald reiterated an “overweight” rating and set a $320.00 price objective (down from $330.00) on shares of Amazon.com in a research report on Friday, July 31st. Bank of America lifted their target price on Amazon.com from $310.00 to $320.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Finally, Benchmark lifted their price objective on shares of Amazon.com from $370.00 to $400.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $323.09.

Amazon.com Stock Down 1.9%

The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. The company has a market cap of $2.75 trillion, a P/E ratio of 20.51, a PEG ratio of 1.77 and a beta of 1.45. The stock has a 50-day moving average of $252.16 and a 200 day moving average of $241.05.

Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, topping the consensus estimate of $1.82 by $3.93. The business had revenue of $200.61 billion during the quarter, compared to analysts’ expectations of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. Amazon.com’s revenue was up 19.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.68 earnings per share. Research analysts anticipate that Amazon.com, Inc. will post 8.05 earnings per share for the current year.

Insiders Place Their Bets

In other Amazon.com news, CEO Douglas J. Herrington sold 6,362 shares of Amazon.com stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $1,647,821.62. Following the transaction, the chief executive officer owned 476,681 shares in the company, valued at $123,465,145.81. The trade was a 1.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian T. Olsavsky sold 6,172 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $260.31, for a total value of $1,606,633.32. Following the transaction, the chief financial officer directly owned 109,207 shares of the company’s stock, valued at approximately $28,427,674.17. The trade was a 5.35% 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 sold a total of 70,589 shares of company stock valued at $18,314,015 over the last three months. 8.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Amazon.com

A number of hedge funds have recently made changes to their positions in AMZN. Norges Bank bought a new stake in shares of Amazon.com during the fourth quarter worth $32,868,735,000. Auto Owners Insurance Co boosted its holdings in shares of Amazon.com by 27,376.7% during the 4th quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant’s stock valued at $2,272,397,000 after acquiring an additional 98,090,585 shares in the last quarter. Bank of America Corp DE acquired a new stake in shares of Amazon.com during the 2nd quarter valued at $22,218,775,000. J. Stern & Co. LLP grew its position in Amazon.com by 20,598.0% during the 4th quarter. J. Stern & Co. LLP now owns 87,982,814 shares of the e-commerce giant’s stock worth $20,308,193,000 after acquiring an additional 87,557,736 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Amazon.com in the 2nd quarter worth about $16,341,405,000. 72.20% of the stock is currently owned by institutional investors and hedge funds.

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.