Amazon.com (NASDAQ:AMZN) Stock Falls 2.3% – Here’s Why

Shares of Amazon.com, Inc. (NASDAQ:AMZN) fell 2.3% during mid-day trading on Thursday. The company traded as low as $253.78 and last traded at $254.06. Approximately 35,614,860 shares changed hands during mid-day trading, a decline of 24% from the average session volume of 46,645,438 shares. The stock had previously closed at $259.92.

Trending Headlines about Amazon.com

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

• Positive Sentiment: AI and AWS optimism: AWS CEO Matt Garman said AI spending is not yet in a bubble, citing diversified customers and attractive returns. Analysts also point to AWS’s accelerating growth, custom-chip demand from major AI companies, and Amazon’s planned infrastructure investments as potential long-term catalysts. AWS CEO discusses AI spending
• Positive Sentiment: Analysts see upside: Needham described Amazon as undervalued, citing AI adoption, expanding margins, and cloud leadership. Technical analysts said a double-bottom breakout could open a path toward $320, with resistance near $267.56 and $287.20. Amazon valuation and AI outlook
• Positive Sentiment: Cost-cutting supports margins: Amazon is eliminating fewer than 1,000 positions, primarily in Stores, customer service, marketplace support, and engineering. The cuts may improve efficiency as the company shifts resources toward AI, although they also signal ongoing restructuring. Amazon job cuts
• Neutral Sentiment: Data-center transparency: Amazon said it will stop using nondisclosure agreements in negotiations with local governments over data centers, potentially easing opposition to AI infrastructure while exposing the company to greater public scrutiny. Amazon drops data-center NDAs
• Negative Sentiment: Regulatory and reputational risk: An investigation alleges Amazon pressured sellers to raise prices at competing retailers, potentially increasing antitrust scrutiny. Investigation into Amazon pricing practices
• Negative Sentiment: Heavy AI spending remains a concern: Amazon’s large capital commitments, including planned GPU deployments, could pressure free cash flow if AI demand or returns disappoint. Blocking third-party AI shopping agents may also create an opening for competitors.

Analyst Upgrades and Downgrades

AMZN has been the topic of several recent research reports. Citigroup restated a “market outperform” rating on shares of Amazon.com in a research report on Friday, August 14th. TD Cowen restated a “buy” rating and issued a $350.00 target price on shares of Amazon.com in a report on Monday, October 5th. BMO Capital Markets reaffirmed an “outperform” rating and set a $360.00 price target (up from $355.00) on shares of Amazon.com in a research note on Tuesday, July 28th. UBS Group set a $200.00 price objective on shares of Amazon.com in a research report on Thursday, September 17th. Finally, Roth Capital reissued a “buy” rating and set a $325.00 price objective on shares of Amazon.com in a research note on Monday, August 3rd. Fifty-six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Amazon.com currently has an average rating of “Moderate Buy” and a consensus target price of $322.86.

Amazon.com Stock Performance

The stock’s 50 day moving average price is $258.83 and its 200 day moving average price is $249.88. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The company has a market cap of $2.83 trillion, a price-to-earnings ratio of 21.11, a P/E/G ratio of 1.96 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN) last released its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The business had revenue of $200.61 billion for the quarter, compared to analysts’ expectations of $197.03 billion. During the same period last year, the company earned $1.68 earnings per share. The company’s quarterly revenue was up 19.6% on a year-over-year basis. On average, analysts expect that Amazon.com, Inc. will post 8.03 EPS for the current fiscal year.

Insider Buying and Selling

In other news, SVP David Zapolsky sold 9,258 shares of the business’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the completion of the sale, the senior vice president directly owned 41,190 shares of the company’s stock, valued at $10,699,926.30. The trade was a 18.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian Olsavsky sold 6,172 shares of the company’s stock in a transaction on 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 sale, the chief financial officer 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 71,589 shares of company stock worth $18,580,515 over the last 90 days. Company insiders own 8.90% of the company’s stock.

Hedge Funds Weigh In On Amazon.com

Several hedge funds and other institutional investors have recently modified their holdings of the company. State Street Corp raised its stake in shares of Amazon.com by 5.5% in the 2nd quarter. State Street Corp now owns 411,848,346 shares of the e-commerce giant’s stock valued at $95,504,904,000 after acquiring an additional 21,398,025 shares during the period. Bank of America Corp DE purchased a new stake in Amazon.com during the 2nd quarter worth $22,218,775,000. Bank of New York Mellon Corp purchased a new stake in Amazon.com during the 2nd quarter worth $16,341,405,000. Amundi increased its holdings in Amazon.com by 3.9% in the 2nd quarter. Amundi now owns 63,822,242 shares of the e-commerce giant’s stock valued at $15,211,393,000 after purchasing an additional 2,421,739 shares in the last quarter. Finally, Invesco Ltd. raised its position in Amazon.com by 3.3% in the fourth quarter. Invesco Ltd. now owns 59,604,857 shares of the e-commerce giant’s stock valued at $13,757,993,000 after purchasing an additional 1,879,630 shares during the period. 72.20% of the stock is owned by institutional investors and hedge funds.

About Amazon.com

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.