Amazon.com (NASDAQ:AMZN) Stock Price Down 1.3% After Analyst Downgrade

Amazon.com, Inc. (NASDAQ:AMZN) fell 1.3% during mid-day trading on Monday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $250.74 and last traded at $253.54. 33,055,119 shares were traded during trading, a decline of 31% from the average daily volume of 47,614,598 shares. The stock had previously closed at $256.78.

A number of other brokerages also recently weighed in on AMZN. Telsey Advisory Group set a $335.00 price objective on shares of Amazon.com and gave the stock an “outperform” rating in a research report on Friday, July 31st. Oppenheimer restated an “outperform” rating on shares of Amazon.com in a research note on Friday, July 31st. Pivotal Research reaffirmed a “buy” rating and issued a $333.00 price target (up from $320.00) on shares of Amazon.com in a report on Friday, July 31st. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Amazon.com in a report on Monday, August 3rd. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $325.00 price target (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Fifty-six research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $323.26.

Insider Buying and Selling at Amazon.com

In other news, CEO Douglas J. Herrington sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $254.77, for a total value of $254,770.00. Following the transaction, the chief executive officer directly owned 475,681 shares of the company’s stock, valued at approximately $121,189,248.37. This trade represents a 0.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew R. Jassy sold 20,000 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the transaction, the chief executive officer owned 2,235,766 shares in the company, valued at $579,085,751.66. The trade was a 0.89% 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. Over the last three months, insiders have sold 71,589 shares of company stock valued at $18,568,785. 8.90% of the stock is owned by company insiders.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Anthropic stake could create substantial value: Anthropic is reportedly preparing for an initial public offering and expects another quarter of adjusted operating profit. Amazon has invested approximately $13 billion in the AI company and could benefit from a higher valuation of its stake, in addition to increased demand for AWS infrastructure. What the Anthropic IPO Means for Amazon and Alphabet Investors
• Positive Sentiment: AI and cloud expansion remains a major growth theme: Amazon is expanding U.S. AI infrastructure with Wiwynn, while reports indicate Amazon could purchase as much as $60 billion of Qualcomm AI chips. Salesforce’s expanded AWS partnership also supports the case for enterprise AI demand. Amazon Partners with Wiwynn to Expand U.S. AI Infrastructure Capacity
• Positive Sentiment: Retail and consumer services are expanding: Alexa+ launched in India with Hindi-language support, and Amazon plans more than 1,000 same-day delivery facilities by 2031. These initiatives could strengthen Prime engagement and accelerate delivery capabilities. Amazon launches Alexa+ in India with Hindi support

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in AMZN. Northstar Financial Companies Inc. acquired a new stake in Amazon.com during the 2nd quarter valued at $3,376,000. Gryphon Financial Partners LLC increased its position in Amazon.com by 7.5% during the first quarter. Gryphon Financial Partners LLC now owns 73,085 shares of the e-commerce giant’s stock worth $15,221,000 after buying an additional 5,125 shares in the last quarter. First Citizens Bank & Trust Co. raised its holdings in shares of Amazon.com by 1.7% in 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 last quarter. GSA Capital Partners LLP acquired a new position in shares of Amazon.com in the second quarter worth $2,261,000. Finally, Vista Cima Wealth Management LLC purchased a new stake in shares of Amazon.com in the second quarter valued at $1,585,000. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Amazon.com Price Performance

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 firm has a market capitalization of $2.68 trillion, a PE ratio of 19.99, a P/E/G ratio of 1.95 and a beta of 1.44. The company has a 50-day moving average price of $255.80 and a 200-day moving average price of $244.98.

Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, topping analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The firm had revenue of $200.61 billion during the quarter, compared to analysts’ expectations of $197.03 billion. During the same quarter last year, the business posted $1.68 EPS. The firm’s quarterly revenue was up 19.6% compared to the same quarter last year. Sell-side analysts forecast that Amazon.com, Inc. will post 8.05 EPS for the current year.

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company that operates online marketplaces and provides a broad range of consumer products and services. Its retail business sells merchandise directly to customers and enables third-party sellers to offer products through Amazon’s websites and applications. The company also operates physical stores and provides services such as digital content, subscriptions, and consumer devices, including Kindle and Echo products.

Amazon Web Services (AWS) provides cloud computing, storage, database, analytics, artificial intelligence, machine learning, and other technology services to businesses, governments, and organizations.