Amazon.com (NASDAQ:AMZN) Shares Down 1.8% – Should You Sell?

Shares of Amazon.com, Inc. (NASDAQ:AMZN) fell 1.8% during trading on Tuesday . The company traded as low as $235.45 and last traded at $238.62. 50,468,774 shares were traded during mid-day trading, an increase of 19% from the average session volume of 42,246,949 shares. The stock had previously closed at $242.96.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Wall Street bullishness: several firms have raised targets or reiterated buy/outperform calls (Citizens raised its target to $315; Wedbush and Jefferies remain constructive), supporting upside expectations into earnings. Amazon price target raises and analyst upgrades
• Positive Sentiment: UBS and other analysts see AWS acceleration and growing confidence in free-cash-flow prospects, nudging price targets higher and reinforcing the narrative that cloud/AI infrastructure will drive medium-term earnings. Amazon shares ‘a coiled spring’ going into Q4 report: UBS
• Positive Sentiment: Operating momentum: Amazon said it delivered a record number of fast (same/next‑day) Prime deliveries in 2025 and reported over 13 billion Prime items globally — evidence of improved logistics efficiency that can support revenue and customer retention. Amazon fast delivery record
• Positive Sentiment: Institutional interest: notable buys (including ARK/Cathie Wood) and repeated analyst upgrades have added conviction that AMZN could re-rate if AWS prints strong numbers. Cathie Wood buys Amazon ahead of earnings
• Neutral Sentiment: Big earnings event risk: options markets price an expected ~8% move around the report — that implies high short‑term volatility (both upside and downside) for traders and risk-averse holders. Expected post-earnings move
• Neutral Sentiment: Speculative OpenAI talks: reports Amazon is in talks to invest heavily in OpenAI — a transformational move if true, but still unconfirmed and highly market‑sensitive. OpenAI investment talks
• Neutral Sentiment: AWS roadmap clarity: AWS CEO pushed back on hype like “orbital data centers,” emphasizing practical priorities — not a material hit but a reality check on long‑term speculative initiatives. AWS orbital data center comment
• Negative Sentiment: Execution headwind in Europe: Reuters reports long delays for power-grid connections are slowing Amazon’s data‑center expansion in Europe — a concrete capex/deployment risk that could constrain AWS supply growth and delay revenue from new capacity. Power grid delays in Europe
• Negative Sentiment: Workforce reductions and optics: additional Seattle corporate job cuts (2,200) and prior layoffs keep headlines focused on restructuring risks and potential disruption, which can pressure sentiment ahead of results. Job cuts in Seattle
• Negative Sentiment: Insider selling: public filings/aggregators show notable insider sales and heavy institutional portfolio churn, which can be interpreted by some investors as directional caution. Insider selling and institutional moves

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. China Renaissance raised their target price on shares of Amazon.com from $278.00 to $300.00 and gave the stock a “buy” rating in a research report on Monday, November 3rd. TD Cowen reiterated a “buy” rating on shares of Amazon.com in a report on Tuesday, January 13th. William Blair restated an “outperform” rating on shares of Amazon.com in a research note on Monday, November 3rd. CICC Research lifted their price target on Amazon.com from $240.00 to $280.00 and gave the company an “outperform” rating in a research report on Wednesday, November 5th. Finally, Rothschild & Co Redburn decreased their price objective on Amazon.com from $250.00 to $230.00 and set a “neutral” rating for the company in a report on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, fifty-four have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Amazon.com presently has an average rating of “Moderate Buy” and a consensus target price of $296.37.

Amazon.com Stock Down 1.8%

The firm has a market capitalization of $2.55 trillion, a P/E ratio of 33.70, a P/E/G ratio of 1.49 and a beta of 1.37. The company has a fifty day simple moving average of $233.84 and a 200 day simple moving average of $229.85. The company has a quick ratio of 0.80, a current ratio of 1.01 and a debt-to-equity ratio of 0.14.

Insider Activity at Amazon.com

In other Amazon.com news, CEO Douglas J. Herrington sold 2,500 shares of the firm’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $233.22, for a total transaction of $583,050.00. Following the completion of the sale, the chief executive officer directly owned 505,934 shares in the company, valued at approximately $117,993,927.48. This trade represents a 0.49% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Andrew R. Jassy sold 19,872 shares of Amazon.com stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $216.94, for a total transaction of $4,311,031.68. Following the completion of the transaction, the chief executive officer directly owned 2,208,310 shares of the company’s stock, valued at $479,070,771.40. This trade represents a 0.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 47,061 shares of company stock worth $10,351,262 in the last ninety days. 9.70% of the stock is currently owned by company insiders.

Institutional Trading of Amazon.com

Several institutional investors have recently added to or reduced their stakes in the business. Norges Bank purchased a new position in Amazon.com in the 2nd quarter worth about $27,438,011,000. Nuveen LLC bought a new stake in shares of Amazon.com in the first quarter worth approximately $11,674,091,000. Vanguard Group Inc. raised its holdings in shares of Amazon.com by 2.1% during the second quarter. Vanguard Group Inc. now owns 849,721,601 shares of the e-commerce giant’s stock valued at $186,420,422,000 after purchasing an additional 17,447,045 shares during the last quarter. Laurel Wealth Advisors LLC lifted its position in Amazon.com by 22,085.8% during the second quarter. Laurel Wealth Advisors LLC now owns 12,177,557 shares of the e-commerce giant’s stock valued at $2,671,634,000 after purchasing an additional 12,122,668 shares during the period. Finally, Goldman Sachs Group Inc. raised its stake in Amazon.com by 21.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 57,908,424 shares of the e-commerce giant’s stock valued at $11,017,657,000 after buying an additional 10,176,835 shares during the last quarter. 72.20% of the stock is currently owned by hedge funds and other 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.