Amazon.com (NASDAQ:AMZN) Trading Down 1.8% – Here’s What Happened

Amazon.com, Inc. (NASDAQ:AMZN) shares dropped 1.8% during trading on Wednesday . The stock traded as low as $267.10 and last traded at $267.28. Approximately 29,363,940 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 49,818,496 shares. The stock had previously closed at $272.27.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: AWS and AI demand remain powerful growth drivers. AWS revenue rose 36.7% year over year to $42.2 billion—its fastest growth in 18 quarters—while its backlog reached $496 billion, with much of 2027 capacity already committed. Amazon also reports more than $25 billion in annualized revenue from its custom chips and AI services. Amazon Stock Eyes AWS Growth as Amazon’s $220B Spending Plan Expands
• Positive Sentiment: OpenAI collaboration strengthens Bedrock’s cybersecurity offering. OpenAI’s Daybreak Red and Daybreak Blue security models are now available to eligible Amazon Bedrock customers, and AWS security teams are using them to identify vulnerabilities more quickly. The announcement supports the investment case for AWS as an AI and cloud-security platform. Amazon Is Powering OpenAI’s Cyber Models
• Positive Sentiment: Analyst and institutional sentiment remains favorable. Coverage continues to emphasize Amazon’s revenue growth, strong balance sheet and earnings potential; the reported median analyst price target is $320, above the recent trading range. Davis Selected Advisers also increased its position, although fund activity overall was mixed. Is Amazon a Solid Growth Stock?
• Neutral Sentiment: Amazon raised its 2026 capital-expenditure forecast to approximately $220 billion, up from $200 billion. The spending reflects strong AI demand and AWS capacity commitments, but investors are increasingly focused on whether future cloud profits will justify the enormous investment. Amazon Raises 2026 AI Spending to $220B
• Negative Sentiment: New York labor regulation presents a potential cost and operating risk. A proposed bill would require large delivery operators to directly employ couriers rather than rely on subcontractors. Amazon says the measure could threaten more than 5,000 jobs and potentially prompt changes to its New York logistics network. Mamdani Takes on Amazon in New Battle Over New York’s Delivery Workers
• Negative Sentiment: Profit-taking and broader technology-sector weakness are limiting momentum. Jeff Bezos recently sold roughly $350 million of Amazon shares under a preset trading plan, while market rotation away from mega-cap technology stocks and concerns about AI spending are adding pressure despite strong fundamentals. Jeff Bezos’ Amazon Sale Looks Less Alarming Than the Headline Suggests

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. DZ Bank lifted their price objective on shares of Amazon.com from $295.00 to $320.00 and gave the stock a “buy” rating in a report on Monday, May 4th. JPMorgan Chase & Co. lifted their price target on shares of Amazon.com from $330.00 to $365.00 and gave the company an “overweight” rating in a report on Friday, July 31st. Zacks Research raised shares of Amazon.com from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 4th. New Street Research increased their price objective on shares of Amazon.com from $280.00 to $350.00 and gave the stock a “buy” rating in a research note on Monday, May 4th. Finally, Wolfe Research reissued an “outperform” rating and issued a $315.00 target price on shares of Amazon.com in a report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $322.56.

Amazon.com Stock Performance

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 company’s 50-day moving average is $247.00 and its two-hundred day moving average is $238.07. The stock has a market capitalization of $2.88 trillion, a P/E ratio of 21.50, a P/E/G ratio of 1.85 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN) last announced its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, beating the consensus estimate 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 net margin of 17.44% and a return on equity of 18.00%. Amazon.com’s revenue was up 19.6% compared to the same quarter last year. During the same quarter last year, the business earned $1.68 earnings per share. As a group, sell-side analysts anticipate that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.

Insider Activity

In other Amazon.com news, VP Shelley Reynolds sold 2,363 shares of the business’s stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $262.38, for a total transaction of $620,003.94. Following the completion of the transaction, the vice president owned 119,780 shares in the company, valued at approximately $31,427,876.40. The trade was a 1.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of the stock in a transaction on Thursday, May 21st. The stock was 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 directly owned 14,159 shares of the company’s stock, valued at approximately $3,729,480.60. The trade was a 52.21% 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. Insiders have sold 77,867 shares of company stock worth $20,532,092 over the last ninety days. 8.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Amazon.com

Large investors have recently bought and sold shares of the stock. Gryphon Financial Partners LLC grew its position in Amazon.com by 7.5% in the 1st quarter. Gryphon Financial Partners LLC now owns 73,085 shares of the e-commerce giant’s stock worth $15,221,000 after purchasing an additional 5,125 shares during the last quarter. First Citizens Bank & Trust Co. increased its position in shares of Amazon.com by 1.7% during the first quarter. First Citizens Bank & Trust Co. now owns 303,862 shares of the e-commerce giant’s stock valued at $63,285,000 after purchasing an additional 5,104 shares during the period. Narwhal Capital Management raised its stake in shares of Amazon.com by 2.3% in the fourth quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant’s stock valued at $49,997,000 after purchasing an additional 4,854 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in Amazon.com by 21.0% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 24,653,228 shares of the e-commerce giant’s stock worth $5,690,463,000 after buying an additional 4,275,942 shares in the last quarter. Finally, Weaver Capital Management LLC raised its stake in shares of Amazon.com by 13.6% in the 4th quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant’s stock valued at $9,063,000 after buying an additional 4,713 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.