Amazon.com (NASDAQ:AMZN) Stock Rating Lowered by Zacks Research

Amazon.com (NASDAQ:AMZN) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Monday, Zacks reports.

A number of other analysts have also recently issued reports on AMZN. Bank of America increased their target price on Amazon.com from $310.00 to $320.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $338.00 price target (up from $328.00) on shares of Amazon.com in a research note on Thursday, September 3rd. TD Cowen reiterated a “buy” rating and issued a $350.00 price target (up from $340.00) on shares of Amazon.com in a report on Friday, July 31st. Rosenblatt Securities started coverage on shares of Amazon.com in a report on Thursday, August 20th. They issued a “buy” rating and a $335.00 price target for the company. Finally, Mizuho set a $330.00 price objective on shares of Amazon.com and gave the stock an “outperform” rating in a research report on Friday, July 31st. Fifty-six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $323.26.

Amazon.com Stock Down 2.0%

NASDAQ:AMZN opened at $248.42 on Monday. Amazon.com has a 1 year low of $196.00 and a 1 year high of $287.20. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The stock has a market cap of $2.68 trillion, a price-to-earnings ratio of 19.99, a PEG ratio of 1.95 and a beta of 1.44. The stock has a 50-day moving average price of $255.80 and a two-hundred day moving average price of $244.98.

Amazon.com (NASDAQ:AMZN) last released its quarterly earnings results 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. The company had revenue of $200.61 billion for the quarter, compared to analyst estimates 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 quarter last year, the firm posted $1.68 earnings per share. As a group, equities analysts expect that Amazon.com will post 8.05 earnings per share for the current year.

Insider Activity

In other news, CEO Andrew Jassy sold 20,000 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 2,235,766 shares of the company’s stock, valued at $579,085,751.66. This trade represents a 0.89% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian Olsavsky sold 6,172 shares of Amazon.com stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $260.31, for a total transaction of $1,606,633.32. Following the completion of the sale, the chief financial officer owned 109,207 shares in the company, valued at $28,427,674.17. This trade represents a 5.35% 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 quarter, insiders have sold 71,589 shares of company stock worth $18,568,785. 8.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Amazon.com

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Auto Owners Insurance Co grew its stake in 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 in the last quarter. Bank of America Corp DE bought a new stake in shares of Amazon.com during the 2nd quarter worth approximately $22,218,775,000. Bank of New York Mellon Corp bought a new stake in shares of Amazon.com during the 2nd quarter worth approximately $16,341,405,000. Amundi raised its stake in shares of Amazon.com by 3.9% during the 2nd quarter. Amundi now owns 63,822,242 shares of the e-commerce giant’s stock worth $15,211,393,000 after purchasing an additional 2,421,739 shares in the last quarter. Finally, Invesco Ltd. boosted its holdings in shares of Amazon.com by 3.3% in the 4th quarter. Invesco Ltd. now owns 59,604,857 shares of the e-commerce giant’s stock valued at $13,757,993,000 after buying an additional 1,879,630 shares during the last quarter. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Amazon.com News Roundup

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

• Positive Sentiment: Large AI infrastructure commitments support AWS growth. Amazon reportedly could purchase up to $60 billion of Qualcomm AI chips, while its partnership with Wiwynn will expand U.S. server manufacturing capacity and create nearly 1,000 jobs. These developments reinforce Amazon’s long-term investment in cloud and artificial-intelligence infrastructure. Amazon Could Buy Up to $60 Billion From Qualcomm
• Positive Sentiment: Anthropic stake and operating outlook remain potential value drivers. Reports that Anthropic expects a second consecutive quarter of adjusted operating profit—and could pursue a valuation of as much as $2 trillion—highlight the potential value of Amazon’s roughly $13 billion investment in the AI developer. Anthropic Expects a Second Straight Quarter of Adjusted Operating Profit
• Positive Sentiment: Retail and advertising initiatives offer additional support. Amazon India’s rapid-delivery service reportedly surpassed $1 billion in annualized sales, and the company scheduled Prime Big Deal Days for October 6–7. Amazon also expanded its advertising reach through a pilot with ChatGPT. Amazon India’s Amazon Now Tops $1 Billion
• Neutral Sentiment: Analysts remain broadly optimistic. Coverage indicates Amazon has no sell ratings and continued confidence in earnings, cash flow and AWS growth, although bullish ratings have not prevented near-term volatility. Is It Worth Investing in Amazon Based on Wall Street’s Bullish Views?
• Negative Sentiment: AWS cannot restore access to damaged facilities in Bahrain and the UAE. The prolonged loss of access to customer data and cloud availability zones raises concerns about service resilience, customer retention, potential costs and reputational damage. This was the most direct company-specific pressure on AMZN. AWS Unable to Restore Access After War Damage
• Negative Sentiment: Macro and competitive pressures weighed on technology stocks. Investors prepared for a Federal Reserve rate decision amid higher yields and oil prices, while commentary suggested AWS cloud growth is lagging Microsoft Azure and Google Cloud in AI. Amazon also paused operations with 21 Air after a fatal cargo-plane crash, adding logistics and reputational risk. Amazon Stock Slides: What’s Happening?

Amazon.com Company Profile

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.