Amazon.com (NASDAQ:AMZN) Stock Price Down 1.7% – Here’s Why

Shares of Amazon.com, Inc. (NASDAQ:AMZN) dropped 1.7% during trading on Wednesday. The stock traded as low as $252.66 and last traded at $254.08. Approximately 33,414,283 shares were traded during mid-day trading, a decline of 28% from the average session volume of 46,324,363 shares. The stock had previously closed at $258.58.

Trending Headlines about Amazon.com

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

• Positive Sentiment: Exchange-traded funds purchased approximately $149.3 million of AMZN shares on October 14, suggesting continued demand from passive and institutional investors. ETFs Bought $149.3 Million of Amazon
• Positive Sentiment: Analysts appear broadly optimistic about Amazon, with recent coverage highlighting attractive valuation, accelerating cloud growth and strong expectations for the company’s long-term AI opportunity. Wall Street Agrees on Amazon
• Positive Sentiment: AWS remains a major earnings driver. Reports point to substantial demand for cloud capacity and Amazon’s custom AI chips, which could improve margins and reduce reliance on third-party hardware over time. Amazon’s $25B Chip Business
• Positive Sentiment: Amazon launched new Bee personal-AI devices and is adding AI features to Prime Video’s NBA coverage. The products could expand Alexa, shopping and subscription engagement, although adoption remains unproven. Amazon Launches New Bee AI Devices
• Positive Sentiment: Analysts expect online retail spending and the 2026 holiday season to support Amazon’s commerce and advertising businesses. Amazon will report third-quarter results on October 29, providing the next major catalyst. Amazon Third-Quarter Earnings Call

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Phillip Securities cut shares of Amazon.com from a “strong-buy” rating to a “moderate buy” rating in a report on Monday, August 3rd. Morgan Stanley reaffirmed an “overweight” rating and issued a $335.00 target price (up from $330.00) on shares of Amazon.com in a report on Friday, July 31st. Citigroup reiterated a “market outperform” rating on shares of Amazon.com in a research report on Friday, August 14th. Tigress Financial reaffirmed a “buy” rating and set a $385.00 price target (up from $315.00) on shares of Amazon.com in a research note on Tuesday, October 6th. Finally, Pivotal Research reiterated a “buy” rating and issued a $333.00 price objective (up from $320.00) on shares of Amazon.com in a research report on Friday, July 31st. Fifty-six 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.com, the company has an average rating of “Moderate Buy” and a consensus price target of $322.53.

Amazon.com Stock Performance

The firm has a market cap of $2.75 trillion, a PE ratio of 20.51, a P/E/G ratio of 1.96 and a beta of 1.45. The stock has a 50-day moving average price of $257.24 and a 200 day moving average price of $251.58. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87.

Amazon.com (NASDAQ:AMZN) last issued its earnings results 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. 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 for the quarter, compared to analysts’ expectations of $197.03 billion. During the same quarter last year, the firm earned $1.68 earnings per share. The firm’s revenue for the quarter was up 19.6% compared to the same quarter last year. Research analysts forecast that Amazon.com, Inc. will post 8.03 earnings per share for the current year.

Insider Activity

In other Amazon.com news, CFO Brian T. Olsavsky sold 6,172 shares of Amazon.com stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $260.31, for a total transaction of $1,606,633.32. Following the sale, the chief financial officer directly owned 109,207 shares in the company, valued at $28,427,674.17. The trade was a 5.35% decrease in their position. 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. Also, SVP David Zapolsky sold 9,258 shares of Amazon.com stock in a transaction on Monday, August 24th. The stock was sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the completion of the sale, the senior vice president owned 41,190 shares of the company’s stock, valued at approximately $10,699,926.30. This trade represents a 18.35% decrease in their position. 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 sold a total of 71,589 shares of company stock worth $18,580,515 in the last ninety days. 8.90% of the stock is currently owned by company insiders.

Institutional Trading of Amazon.com

Institutional investors and hedge funds have recently modified their holdings of the business. Red Crane Wealth Management LLC increased its stake in shares of Amazon.com by 2.3% in the first quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant’s stock valued at $346,000 after purchasing an additional 38 shares during the period. Stegent Equity Advisors Inc. raised its position in shares of Amazon.com by 2.7% during the 3rd quarter. Stegent Equity Advisors Inc. now owns 1,462 shares of the e-commerce giant’s stock worth $364,000 after buying an additional 39 shares in the last quarter. Robinson Smith Wealth Advisors LLC lifted its position in Amazon.com by 0.7% in 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 purchasing an additional 40 shares during the period. Sfam LLC raised its position in Amazon.com by 3.4% in 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. Finally, Measured Risk Portfolios Inc. lifted its holdings in shares of Amazon.com by 3.4% during the first quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant’s stock valued at $251,000 after purchasing an additional 40 shares during the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

About Amazon.com

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.