Amazon.com (NASDAQ:AMZN) Trading Down 1.1% – What’s Next?

Amazon.com, Inc. (NASDAQ:AMZN)’s share price fell 1.1% during mid-day trading on Friday . The stock traded as low as $243.59 and last traded at $247.23. 42,083,728 shares were traded during trading, a decline of 16% from the average daily volume of 49,827,402 shares. The stock had previously closed at $249.89.

Trending Headlines about Amazon.com

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

• Positive Sentiment: Retail sales data showed online spending surging in June, and Amazon was highlighted as one of the key beneficiaries as consumers kept spending into the back-to-school season. 5 Solid Stocks to Boost Your Portfolio as Retail Sales Continue to Surge
• Positive Sentiment: Wall Street remains constructive on Amazon’s AI and cloud story, with reports pointing to massive data-center and chip investment, strong AWS demand, and multiple analyst upgrades or higher price targets. Andy Jassy Says Amazon’s Chip Business Already Has $225 Billion in Commitments
• Positive Sentiment: Technical sentiment improved after Amazon broke above its 50-day moving average, suggesting short-term bullish momentum. Amazon (AMZN) Just Overtook the 50-Day Moving Average
• Neutral Sentiment: Amazon is featured in broader commentary on AI hyperscalers and a new ETF focused on tech giants and options income, which underscores investor interest in the name but does not directly change fundamentals. Meet TMGN, the 0.88% Fee ETF Betting on Tech Giants and Options Income
• Neutral Sentiment: Analysts continue to model solid earnings growth for Amazon, with one estimate raised for FY2027 EPS, reinforcing the long-term earnings outlook. Amazon.com, Inc. (NASDAQ:AMZN) Receives $312.79 Average PT from Analysts
• Negative Sentiment: Zoox, Amazon’s autonomous vehicle unit, recalled 105 robotaxis after a software issue involving heavy smoke, adding another operational and regulatory headline risk. Amazon’s Zoox issues software recall after robotaxi drove into heavy smoke
• Negative Sentiment: Amazon Web Services also had a billing glitch that briefly generated enormous, erroneous invoice estimates for some customers, a reminder that the cloud business is still vulnerable to embarrassing service issues. Amazon fixing bug that billed some AWS customers billions of dollars

Analyst Ratings Changes

Several research firms have recently weighed in on AMZN. Deutsche Bank Aktiengesellschaft increased their price target on shares of Amazon.com from $290.00 to $315.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Barclays reiterated an “overweight” rating on shares of Amazon.com in a report on Tuesday, June 9th. Monness Crespi & Hardt increased their price objective on Amazon.com from $280.00 to $315.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Tigress Financial raised their target price on Amazon.com from $305.00 to $315.00 and gave the stock a “buy” rating in a research note on Wednesday, March 25th. Finally, Needham & Company LLC lifted their target price on Amazon.com from $265.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $312.76.

Amazon.com Price Performance

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.18. The stock’s 50-day moving average is $251.33 and its two-hundred day moving average is $235.85. The stock has a market cap of $2.66 trillion, a PE ratio of 29.58, a PEG ratio of 1.90 and a beta of 1.46.

Amazon.com (NASDAQ:AMZN) last announced its earnings results 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. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The company had revenue of $181.52 billion for the quarter, compared to analyst estimates of $177.28 billion. During the same quarter in the previous year, the company earned $1.59 earnings per share. The firm’s quarterly revenue was up 16.6% compared to the same quarter last year. On average, equities analysts predict that Amazon.com, Inc. will post 7.75 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Matthew S. Garman sold 15,467 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $263.40, for a total value of $4,074,007.80. Following the completion of the transaction, the chief executive officer 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. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 27,500 shares of the firm’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 transaction of $7,562,500.00. Following the completion of the transaction, the chief executive officer directly owned 471,361 shares of the company’s stock, valued at $129,624,275. This represents a 5.51% decrease in their position. 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 144,274 shares of company stock valued at $38,716,204. 8.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Amazon.com

A number of institutional investors and hedge funds have recently modified their holdings of AMZN. Norges Bank acquired a new position in shares of Amazon.com in the 4th quarter valued at $32,868,735,000. Auto Owners Insurance Co increased its holdings in shares of Amazon.com by 27,376.7% in the fourth 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 purchasing an additional 98,090,585 shares during the period. J. Stern & Co. LLP increased its stake in Amazon.com by 20,598.0% in the 4th quarter. J. Stern & Co. LLP now owns 87,982,814 shares of the e-commerce giant’s stock valued at $20,308,193,000 after buying an additional 87,557,736 shares during the period. Nuveen LLC acquired a new position in shares of Amazon.com during the first quarter worth about $11,674,091,000. Finally, Cardano Risk Management B.V. raised its stake in shares of Amazon.com by 879.4% during the 4th quarter. Cardano Risk Management B.V. now owns 27,862,400 shares of the e-commerce giant’s stock worth $6,431,199,000 after buying an additional 25,017,588 shares in the last quarter. Institutional investors and hedge funds own 72.20% of the company’s stock.

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.