Amazon.com (NASDAQ:AMZN) Trading Down 3.1% – Here’s Why

Amazon.com, Inc. (NASDAQ:AMZN)’s share price traded down 3.1% during trading on Thursday . The company traded as low as $225.55 and last traded at $227.01. Approximately 76,077,402 shares changed hands during mid-day trading, an increase of 56% from the average session volume of 48,776,063 shares. The stock had previously closed at $234.27.

Amazon.com News Roundup

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

• Positive Sentiment: Amazon Web Services raised prices on certain AI GPU and capacity-block offerings, which suggests strong demand and improved pricing power for its cloud business. Article Title
• Positive Sentiment: Amazon said it will invest an additional $13 billion in India through 2030 to expand AI and cloud infrastructure, reinforcing long-term growth ambitions in a key market. Article Title
• Positive Sentiment: Prime Day appears to be generating strong demand, with reports pointing to record sales expectations and early momentum from AI-driven shopping activity. Article Title
• Positive Sentiment: Several analysts reiterated bullish views, including Wells Fargo and BMO Capital, signaling continued confidence in Amazon’s cloud, advertising, and AI-driven earnings power. Article Title
• Neutral Sentiment: Media coverage also highlighted Amazon as a stock that hedge funds and prominent investors continue to own heavily, but these are not immediate fundamental catalysts. Article Title
• Negative Sentiment: Some articles pointed to ongoing concerns about Amazon’s heavy capex, insider selling, and the stock breaking below key technical levels, which may be limiting gains. Article Title
• Negative Sentiment: Separately, EU regulators said Amazon’s cloud business may face stricter competition rules, adding a potential overhang for AWS. Article Title

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on AMZN shares. The Goldman Sachs Group reaffirmed a “buy” rating and set a $325.00 price objective (up from $275.00) on shares of Amazon.com in a research report on Thursday, April 30th. Roth Mkm boosted their target price on Amazon.com from $285.00 to $300.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. JPMorgan Chase & Co. upped their target price on shares of Amazon.com from $280.00 to $330.00 and gave the company an “overweight” rating in a research note on Thursday, April 30th. Susquehanna reaffirmed a “positive” rating and set a $325.00 price target (up from $300.00) on shares of Amazon.com in a report on Thursday, April 30th. Finally, BMO Capital Markets boosted their price objective on shares of Amazon.com from $310.00 to $315.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. Fifty-seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, Amazon.com has a consensus rating of “Moderate Buy” and an average price target of $312.78.

Amazon.com Stock Up 2.5%

The company’s 50-day simple moving average is $255.53 and its two-hundred day simple moving average is $234.13. The firm has a market capitalization of $2.50 trillion, a P/E ratio of 27.83, a P/E/G ratio of 1.70 and a beta of 1.44. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01.

Amazon.com (NASDAQ:AMZN) last issued its quarterly earnings data on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.63 by $1.15. The firm had revenue of $181.52 billion during the quarter, compared to the consensus estimate of $177.28 billion. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The company’s revenue for the quarter was up 16.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.59 EPS. As a group, research analysts expect that Amazon.com, Inc. will post 7.71 earnings per share for the current year.

Insider Buying and Selling

In other Amazon.com news, CEO Douglas J. Herrington sold 27,500 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $275.00, for a total value of $7,562,500.00. Following the completion of the transaction, the chief executive officer directly owned 471,361 shares in the company, valued at $129,624,275. This represents a 5.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $263.40, for a total transaction of $4,074,007.80. Following the completion of the sale, the chief executive officer directly owned 14,159 shares of the company’s stock, valued at approximately $3,729,480.60. This trade represents a 52.21% 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. In the last quarter, insiders have sold 195,774 shares of company stock valued at $51,614,434. Insiders own 8.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. MilWealth Group LLC raised its position in shares of Amazon.com by 79.0% during the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after buying an additional 79 shares during the last quarter. Lifetime Wealth Management P.C. bought a new position in shares of Amazon.com during the fourth quarter worth $45,000. Elkhorn Partners Limited Partnership grew its stake in Amazon.com by 900.0% during the fourth quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock valued at $46,000 after acquiring an additional 180 shares in the last quarter. Fairway Wealth LLC increased its holdings in Amazon.com by 95.6% in the 4th quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant’s stock valued at $51,000 after acquiring an additional 108 shares during the last quarter. Finally, Prudent Man Investment Management Inc. increased its holdings in Amazon.com by 87.7% in the 4th quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant’s stock valued at $53,000 after acquiring an additional 107 shares during the last quarter. Institutional investors own 72.20% of the company’s stock.

Amazon.com Company Profile

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.