Amazon.com (NASDAQ:AMZN) Trading Down 2% After Analyst Downgrade

Amazon.com, Inc. (NASDAQ:AMZN) fell 2% during mid-day trading on Wednesday after Mizuho lowered their price target on the stock from $325.00 to $320.00. Mizuho currently has an outperform rating on the stock. Amazon.com traded as low as $226.16 and last traded at $226.2690. 42,664,971 shares were traded during mid-day trading, a decline of 13% from the average daily volume of 49,131,582 shares. The stock had previously closed at $230.86.

AMZN has been the topic of several other research reports. Cantor Fitzgerald reissued an “overweight” rating and issued a $330.00 price objective (up from $280.00) on shares of Amazon.com in a research note on Thursday, April 30th. Pivotal Research reaffirmed a “buy” rating and set a $320.00 target price (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $315.00 target price (up from $300.00) on shares of Amazon.com in a report on Thursday, April 30th. William Blair reiterated an “outperform” rating on shares of Amazon.com in a research report on Thursday, April 9th. Finally, Wells Fargo & Company set a $322.00 price target on Amazon.com and gave the company an “overweight” rating in a research note on Tuesday, July 21st. Fifty-seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $313.43.

Insiders Place Their Bets

In other Amazon.com news, CEO Douglas J. Herrington sold 27,500 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $275.00, for a total transaction of $7,562,500.00. Following the completion of the sale, the chief executive officer directly owned 471,361 shares in the company, valued at approximately $129,624,275. This trade represents a 5.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jonathan Rubinstein sold 3,706 shares of Amazon.com stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $273.02, for a total value of $1,011,812.12. Following the completion of the transaction, the director directly owned 74,948 shares of the company’s stock, valued at approximately $20,462,302.96. This trade represents a 4.71% 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 140,425 shares of company stock valued at $37,715,464 over the last quarter. Company insiders own 8.90% of the company’s stock.

Key Amazon.com News

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

• Positive Sentiment: AWS growth expectations remain strong. UBS maintained a Buy rating and expects continued AWS momentum and improving e-commerce profitability. Analysts are forecasting approximately 31%–33% year-over-year AWS growth, while a new $400 million compute agreement with Recursive Superintelligence and expanded AWS partnerships provide evidence of ongoing AI demand. Amazon heads into Q2 earnings with UBS bullish on cloud growth and e-commerce margins
• Positive Sentiment: Analyst long-term earnings expectations improved. Erste Group raised its FY2027 EPS estimate to $10.11 from $9.99, and Wall Street remains broadly constructive on Amazon’s long-term growth across cloud, advertising, commerce and custom AI chips. Amazon.com stock analyst estimates
• Positive Sentiment: Amazon continues expanding its strategic growth businesses. AWS India’s FY2026 consolidated profit increased more than tenfold, while Prime Video secured exclusive Canadian NHL playoff rights. Amazon is also seeking approval for a 5,105-satellite direct-to-phone network, potentially broadening Project Kuiper into mobile connectivity beginning in 2028. Amazon Leo seeks FCC approval for direct-to-phone network
• Neutral Sentiment: Thursday’s earnings are expected to produce significant volatility. Options markets imply a move of roughly 6% in either direction. Investors will focus on AWS revenue and margins, free cash flow, retail profitability, Prime Day effects and management’s capital-spending outlook. Expected Amazon stock move after earnings
• Negative Sentiment: AI spending is pressuring valuation and investor confidence. Amazon plans approximately $200 billion in 2026 capital expenditures and recently raised $25 billion through bonds to fund data-center expansion. UBS cut its price target to $305 from $333, citing higher future infrastructure costs and component prices. Amazon’s AI spending faces a bigger test
• Negative Sentiment: Amazon’s AI-model overhaul introduces execution risk. The company is reportedly winding down several Nova models after layoffs and redirecting resources toward a new frontier model. While this may improve focus, it raises questions about prior investments and the pace of monetization. Short interest has also increased ahead of earnings.

Institutional Investors Weigh In On Amazon.com

A number of hedge funds have recently added to or reduced their stakes in the business. Red Crane Wealth Management LLC increased its stake in shares of Amazon.com by 2.3% in the 1st quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant’s stock valued at $346,000 after acquiring an additional 38 shares in the last quarter. Robinson Smith Wealth Advisors LLC boosted its stake in Amazon.com by 0.7% during the first quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant’s stock worth $1,147,000 after acquiring an additional 40 shares in the last quarter. Sfam LLC boosted its stake in Amazon.com by 3.4% during the first quarter. Sfam LLC now owns 1,224 shares of the e-commerce giant’s stock worth $255,000 after acquiring an additional 40 shares in the last quarter. Measured Risk Portfolios Inc. grew its holdings in Amazon.com by 3.4% in the first quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant’s stock worth $251,000 after purchasing an additional 40 shares during the period. Finally, CoreFirst Bank & Trust grew its holdings in Amazon.com by 1.1% in the first quarter. CoreFirst Bank & Trust now owns 3,620 shares of the e-commerce giant’s stock worth $754,000 after purchasing an additional 40 shares during the period. 72.20% of the stock is currently owned by institutional investors.

Amazon.com Trading Down 2.0%

The company has a quick ratio of 1.01, a current ratio of 1.18 and a debt-to-equity ratio of 0.27. The stock has a market capitalization of $2.43 trillion, a P/E ratio of 27.07, a P/E/G ratio of 1.73 and a beta of 1.46. The firm’s 50 day simple moving average is $247.03 and its two-hundred day simple moving average is $236.20.

Amazon.com (NASDAQ:AMZN) last announced its quarterly earnings data on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share for the quarter, beating the consensus estimate of $1.63 by $1.15. The firm had revenue of $181.52 billion for the quarter, compared to analyst estimates of $177.28 billion. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The business’s quarterly revenue was up 16.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.59 earnings per share. As a group, analysts forecast that Amazon.com, Inc. will post 7.76 earnings per share for the current fiscal year.

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.