Amazon.com (NASDAQ:AMZN) Shares Down 1.9% – Should You Sell?

Amazon.com, Inc. (NASDAQ:AMZN)’s share price fell 1.9% during trading on Friday. The company traded as low as $248.60 and last traded at $250.00. 38,943,019 shares changed hands during trading, a decline of 16% from the average session volume of 46,235,555 shares. The stock had previously closed at $254.76.

Key Amazon.com News

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

• Positive Sentiment: AWS growth is the key catalyst. Amazon Web Services grew at its fastest rate in 18 quarters during the second quarter, and investors will focus on whether year-over-year growth remains strong. Continued momentum could support higher earnings expectations and valuation. Amazon Is 11% Below Its High Heading Into Earnings
• Positive Sentiment: AI is expanding Amazon’s growth opportunities. AWS supplies cloud capacity and custom AI chips, while analysts see AI products, rising cloud sales and multibillion-dollar chip commitments potentially boosting future cash flow. AWS generated roughly 60% of Amazon’s second-quarter operating profit. Is Amazon Stock Poised to Gain as AI Boosts Cash Flow Prospects?
• Positive Sentiment: Holiday demand and advertising remain supportive. Analysts expect strong 2026 online holiday spending, while Amazon’s search advertising business continues to benefit from shopping-intent data. New Bee AI devices and enhanced NBA coverage could also strengthen Amazon’s consumer ecosystem, although their financial contribution is unproven. Buy 3 Online Retailers Ahead of Expected Strong Holiday Sales in 2026
• Neutral Sentiment: Earnings are the immediate decision point. Amazon will report third-quarter results after the market closes on October 29. Investors are likely to judge whether accelerating AWS revenue and profits justify the company’s increasingly large AI infrastructure investments. Amazon Announces Third-Quarter Earnings Call
• Negative Sentiment: Broad technology-sector weakness pressured the stock. Higher-than-expected inflation has increased expectations for higher interest rates, prompting investors to move from high-growth technology shares toward value and dividend stocks.
• Negative Sentiment: AI spending is raising cash-flow concerns. Amazon has committed about $220 billion to AI, and rising capital expenditures, chip development costs and data-center capacity constraints could limit near-term free cash flow. Concerns that AI infrastructure spending may outrun revenue growth have added to investor caution. Amazon’s $220 Billion AI Bet Is Getting Bigger
• Negative Sentiment: Competitive and regulatory headlines add risk. Elon Musk floated an “X Shop” or “Grokazon” after Amazon blocked some AI shopping agents, while proposed New York labor legislation could increase employment costs and potentially lead to job cuts. These developments raise questions about Amazon’s control of AI-enabled commerce and labor expenses.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. HSBC reiterated a “buy” rating and issued a $310.00 price target on shares of Amazon.com in a report on Friday, July 31st. Piper Sandler reissued an “overweight” rating and set a $320.00 price objective (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Tigress Financial reaffirmed a “buy” rating and issued a $385.00 target price (up from $315.00) on shares of Amazon.com in a research report on Tuesday, October 6th. Pivotal Research restated a “buy” rating and issued a $333.00 price objective (up from $320.00) on shares of Amazon.com in a report on Friday, July 31st. Finally, Wolfe Research reaffirmed an “outperform” rating and set a $315.00 price objective on shares of Amazon.com in a research report on Friday, July 31st. Fifty-six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Amazon.com currently has a consensus rating of “Moderate Buy” and a consensus target price of $322.53.

Amazon.com Stock Down 1.9%

The company has a market cap of $2.70 trillion, a P/E ratio of 20.11, a P/E/G ratio of 1.96 and a beta of 1.45. 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’s 50-day moving average is $257.24 and its two-hundred day moving average is $251.58.

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

Insider Activity at Amazon.com

In other news, CEO Andrew R. Jassy sold 20,000 shares of the business’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the completion of the sale, the chief executive officer owned 2,235,766 shares of the company’s stock, valued at $579,085,751.66. The trade was a 0.89% decrease in their position. The sale 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, VP Shelley Reynolds sold 2,343 shares of Amazon.com stock in a transaction on Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $606,860.43. Following the transaction, the vice president owned 119,780 shares in the company, valued at $31,024,217.80. This trade represents a 1.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 71,589 shares of company stock valued at $18,580,515 in the last 90 days. 8.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Amazon.com

Several large investors have recently made changes to their positions in the business. Silvant Capital Management LLC bought a new stake in Amazon.com during the 2nd quarter valued at about $60,065,000. Public Employees Retirement System of Ohio purchased a new stake in Amazon.com in the 2nd quarter valued at about $909,868,000. Northstar Financial Companies Inc. bought a new position in Amazon.com in the 2nd quarter worth about $3,376,000. Gryphon Financial Partners LLC grew its stake in Amazon.com by 7.5% in the 1st quarter. Gryphon Financial Partners LLC now owns 73,085 shares of the e-commerce giant’s stock worth $15,221,000 after acquiring an additional 5,125 shares in the last quarter. Finally, First Citizens Bank & Trust Co. increased its position in shares of Amazon.com by 1.7% during the first quarter. First Citizens Bank & Trust Co. now owns 303,862 shares of the e-commerce giant’s stock worth $63,285,000 after acquiring an additional 5,104 shares during the period. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Amazon.com Company Profile

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.