Amazon.com (NASDAQ:AMZN) Stock Gets Price Target Trim from Morgan Stanley

Amazon.com (NASDAQ:AMZN) had its price target trimmed by Morgan Stanley from $350.00 to $335.00 in a report released on Friday,Benzinga reports. The firm currently has an overweight rating on the e-commerce giant’s stock.

Several other research firms have also issued reports on AMZN. Yorkville Ives assumed coverage on shares of Amazon.com in a research report on Monday, October 19th. They issued an “outperform” rating and a $300.00 price target on the stock. Mizuho upped their target price on Amazon.com from $330.00 to $335.00 and gave the company an “outperform” rating in a research report on Friday. Weiss Ratings reiterated a “buy (b)” rating on shares of Amazon.com in a research note on Monday, August 3rd. Roth Capital restated a “buy” rating and issued a $325.00 target price on shares of Amazon.com in a research note on Monday, August 3rd. Finally, Zacks Research cut Amazon.com from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 14th. One research analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $320.86.

Amazon.com Stock Performance

Shares of Amazon.com stock opened at $240.35 on Friday. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.82 and a current ratio of 0.99. Amazon.com has a fifty-two week low of $196.00 and a fifty-two week high of $287.20. The company has a market capitalization of $2.59 trillion, a P/E ratio of 19.43, a P/E/G ratio of 1.86 and a beta of 1.49. The company has a fifty day moving average of $254.28 and a 200 day moving average of $243.09.

Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings results on Thursday, October 29th. The e-commerce giant reported $1.89 EPS for the quarter, missing the consensus estimate of $1.97 by ($0.08). Amazon.com had a net margin of 16.90% and a return on equity of 15.72%. The business had revenue of $201.94 billion during the quarter, compared to analysts’ expectations of $202.22 billion. During the same period in the previous year, the company posted $1.95 earnings per share. Amazon.com’s revenue for the quarter was up 12.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Amazon.com will post 8.00 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP David Zapolsky sold 9,258 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The shares were 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 directly owned 41,190 shares of the company’s stock, valued at $10,699,926.30. The trade was a 18.35% 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 firm’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $5,180,200.00. Following the sale, the chief executive officer directly owned 2,235,766 shares of the company’s stock, valued at $579,085,751.66. This represents a 0.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 70,589 shares of company stock worth $18,302,125. Corporate insiders own 8.90% of the company’s stock.

Institutional Trading of Amazon.com

Hedge funds have recently made changes to their positions in the stock. Red Crane Wealth Management LLC grew its holdings 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 in the last quarter. Stegent Equity Advisors Inc. grew its stake in shares of Amazon.com by 2.7% in the 3rd quarter. Stegent Equity Advisors Inc. now owns 1,462 shares of the e-commerce giant’s stock valued at $364,000 after buying an additional 39 shares during the period. Robinson Smith Wealth Advisors LLC increased its stake in Amazon.com by 0.7% during the 1st quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant’s stock worth $1,147,000 after buying an additional 40 shares during the period. Sfam LLC lifted 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 valued at $255,000 after acquiring an additional 40 shares during the last quarter. Finally, Measured Risk Portfolios Inc. grew its stake in Amazon.com by 3.4% in the 1st quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant’s stock valued at $251,000 after acquiring an additional 40 shares during the last quarter. 72.20% of the stock is owned by institutional investors.

Amazon.com News Roundup

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

• Positive Sentiment: AWS growth accelerated significantly. Amazon Web Services revenue rose 39% to approximately $46 billion, its fastest growth in nearly five years. Management said AWS could grow more than 40% annually in 2027 and 2028, supported by AI demand, a large backlog and rising cloud workloads. Analysts including JPMorgan, Canaccord, Monness and RBC maintained bullish ratings or targets, viewing AWS as a potential long-term, trillion-dollar business. AWS growth hits 39 percent
• Positive Sentiment: Amazon continues expanding its AI and adjacent businesses. The company plans to sell its Trainium AI chips externally by late 2027, while Amazon Pharmacy users increased more than 60% year over year and Prime Video reportedly reached profitability. Management also highlighted longer-term opportunities in retail automation, satellite internet and AI infrastructure. Amazon Trainium AI chips
• Neutral Sentiment: Analyst sentiment remains broadly constructive, but targets were trimmed. Several firms reaffirmed Buy or Outperform ratings, with targets generally well above the current trading level. However, Wells Fargo, Morgan Stanley, Wedbush, Scotiabank, Cantor Fitzgerald and others lowered targets, signaling reduced near-term confidence after the earnings release. Amazon price target changes
• Negative Sentiment: Amazon missed both major Q3 estimates. Earnings per share came in at $1.89 versus roughly $1.97–$2.01 expected, while revenue was $201.94 billion compared with about $202.2 billion anticipated. Fourth-quarter revenue guidance was also viewed as soft, raising concerns about holiday-season retail demand. Amazon fourth-quarter guidance
• Negative Sentiment: AI investment is pressuring cash flow and leverage. Amazon spent about $77 billion on property and equipment in Q3 and continues targeting approximately $220 billion in 2026 capital expenditures. Trailing free cash flow fell to a $42.4 billion deficit, while long-term debt increased substantially. Investors are questioning when the spending will generate adequate returns, overshadowing AWS’s strong growth. Amazon AI spending concerns
• Negative Sentiment: Broader technology-sector weakness amplified the selling. Amazon’s report contributed to a wider Nasdaq decline as investors reconsidered whether massive AI infrastructure spending across Big Tech can produce timely profits. Concerns about AI-related debt, cash burn and valuation affected sentiment beyond Amazon itself. Nasdaq and AI spending concerns

Amazon.com Company Profile

Amazon.com, Inc is a global technology and e-commerce company founded by Jeff Bezos in 1994. Originally launched as an online bookstore, the company has expanded into a broad digital marketplace offering consumer products across numerous categories, including electronics, household goods, apparel, groceries and other merchandise. Amazon also sells products under its own brands and provides logistics, fulfillment and delivery services that support its retail operations and third-party sellers.

The company’s principal businesses include online and physical retail, Amazon Web Services (AWS), digital advertising, subscription services and consumer technology.