Amazon.com (NASDAQ:AMZN) Trading Down 1.7% on Insider Selling

Amazon.com, Inc. (NASDAQ:AMZN) dropped 1.7% on Wednesday after an insider sold shares in the company. The company traded as low as $270.73 and last traded at $272.65. 44,394,739 shares were traded during mid-day trading, a decline of 12% from the average daily volume of 50,381,449 shares. The stock had previously closed at $277.42.

Specifically, CEO Douglas J. Herrington sold 1,000 shares of Amazon.com stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $278.39, for a total value of $278,390.00. Following the sale, the chief executive officer owned 483,527 shares in the company, valued at $134,609,081.53. The trade was a 0.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on AMZN. Raymond James Financial reiterated an “outperform” rating and set a $390.00 price target (up from $280.00) on shares of Amazon.com in a report on Friday, July 31st. Roth Capital reaffirmed a “buy” rating and issued a $325.00 target price on shares of Amazon.com in a research report on Monday. KeyCorp increased their target price on shares of Amazon.com from $335.00 to $350.00 and gave the stock an “overweight” rating in a research note on Friday, July 31st. UBS Group set a $318.00 price target on shares of Amazon.com and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, BMO Capital Markets reissued an “outperform” rating and issued a $360.00 price target (up from $355.00) on shares of Amazon.com in a research note on Tuesday, July 28th. Fifty-six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $322.56.

More Amazon.com News

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

• Positive Sentiment: AWS and AI demand remain the main bullish catalysts. Reports emphasize that AWS growth accelerated, while CEO Andy Jassy and AWS CEO Matt Garman have argued that customer demand is supporting Amazon’s aggressive AI infrastructure spending. Analysts and investors increasingly view the capital expenditures as generating future cloud revenue rather than simply weighing on free cash flow. Amazon AWS AI demand article
• Positive Sentiment: Zoox is moving toward revenue generation. Amazon’s self-driving unit will begin charging for robotaxi rides in Las Vegas on Aug. 10, following federal approval for commercial deployment of vehicles without manual controls. The launch provides a tangible test of whether Zoox can develop a meaningful business beyond Amazon’s core operations. Reuters Zoox robotaxi article
• Positive Sentiment: Anthropic investments add strategic and accounting value. Amazon reported substantial non-operating income, primarily related to its Anthropic stake, while its investment in OpenAI also gives investors indirect exposure to the AI ecosystem. However, these gains are not equivalent to recurring operating earnings. Amazon Anthropic investment article
• Neutral Sentiment: Analyst sentiment remains broadly favorable. AMZN was added to Zacks’ Strong Buy lists, and reported price targets remain above the current trading level, though the stock’s elevated valuation increases sensitivity to execution and guidance.
• Negative Sentiment: Jeff Bezos’ planned sale of 15 million shares, worth roughly $4 billion, is an immediate overhang. The prescheduled transaction does not change Amazon’s fundamentals, but it increases near-term supply and can encourage profit-taking after the rally. CNBC Bezos share sale article
• Negative Sentiment: Legal and operating risks remain. An appeals court allowed Perplexity’s AI shopping agents to access Amazon’s platform, while New Jersey separately sued Amazon over alleged antitrust violations involving delivery contractors. These developments could raise compliance costs and increase scrutiny of Amazon’s marketplace and logistics practices. Reuters Perplexity court article

Amazon.com Trading Down 1.7%

The company’s 50 day moving average price is $246.29 and its 200 day moving average price is $236.73. 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 cap of $2.94 trillion, a PE ratio of 21.93, a price-to-earnings-growth ratio of 1.81 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN) last announced its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. The firm had revenue of $200.61 billion during the quarter, compared to analysts’ expectations of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The business’s quarterly revenue was up 19.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.68 earnings per share. As a group, analysts forecast that Amazon.com, Inc. will post 8.39 EPS for the current fiscal year.

Hedge Funds Weigh In On Amazon.com

Several institutional investors have recently modified their holdings of AMZN. Trust Asset Management LLC increased its stake in shares of Amazon.com by 3.3% during the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant’s stock worth $26,000 after buying an additional 3,414 shares during the period. MilWealth Group LLC lifted its stake in Amazon.com by 79.0% in the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock worth $41,000 after acquiring an additional 79 shares during the last quarter. Lifetime Wealth Management P.C. purchased a new position in Amazon.com in the fourth quarter worth approximately $45,000. Elkhorn Partners Limited Partnership grew its holdings in Amazon.com by 900.0% during the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock worth $46,000 after acquiring an additional 180 shares in the last quarter. Finally, Fairway Wealth LLC grew its holdings in Amazon.com by 95.6% during the 4th quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant’s stock worth $51,000 after acquiring an additional 108 shares in the last quarter. Institutional investors and hedge funds 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.