Amazon.com (NASDAQ:AMZN) Stock Price Down 1.6% – Here’s Why

Amazon.com, Inc. (NASDAQ:AMZN) shares fell 1.6% during mid-day trading on Tuesday . The stock traded as low as $240.25 and last traded at $242.60. 38,152,879 shares traded hands during mid-day trading, a decline of 12% from the average session volume of 43,149,625 shares. The stock had previously closed at $246.47.

Key Amazon.com News

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

• Positive Sentiment: BofA reiterates Buy with a $303 price target, citing improving AI sentiment in 2026 as capacity growth and leadership changes boost the AWS/AI story. AI Sentiment on Amazon (AMZN) Could Improve in 2026, BofA Says
• Positive Sentiment: TD Cowen raised its price target (reported as lifted to $315) and other firms (Bernstein, Jefferies, etc.) are reiterating buy cases — analyst upgrades are supporting demand and underpin higher upside expectations. TD Cowen price target note
• Positive Sentiment: Amazon launched Alexa+ Web — a strategic move to make Alexa a Prime value driver and reduce churn (potential to raise ARPU and justify future Prime price increases). This product news is a major bullish narrative for long?term ecosystem value. Amazon Unveils Alexa+ Web—The AI Strategy Wall Street Has Waited For
• Positive Sentiment: AWS margin expansion and a large backlog (Zacks notes ~34.6% Q3 operating margin and a ~$200B backlog) point to accelerating cloud profitability — a core valuation driver. AWS margin expansion article
• Neutral Sentiment: Amazon is expanding physical/retail experiments (Just Walk Out for pop?up stores; new big?box concept outside Chicago) — strategically interesting but execution/timing uncertain for near?term earnings. Amazon Brings Just Walk Out Tech to Pop-Up Stores Amazon big-box concept article
• Neutral Sentiment: Competitive AI/commerce moves (Microsoft’s Copilot Checkout) highlight a shifting vendor landscape; this raises competitive monitoring but is not an immediate earnings threat to AWS/Prime. Microsoft Copilot Checkout
• Negative Sentiment: Financial Times/Reuters report Amazon is pushing suppliers for price cuts ahead of a Supreme Court tariff ruling — could strain supplier relationships and signal margin pressure or channel friction if suppliers push back. Amazon pushes suppliers for cuts ahead of Supreme Court tariff ruling, FT reports
• Negative Sentiment: Regulatory/legal overhang persists — Italy reduced but kept a €752M antitrust fine against Amazon, a material legacy charge to monitor. Italy antitrust fine reduced
• Negative Sentiment: Minor hedge?fund activity: some managers trimmed stakes (e.g., Spence Asset Management), a small signal of profit?taking after recent gains. Spence trims stake

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on AMZN shares. Canaccord Genuity Group set a $300.00 price objective on Amazon.com and gave the stock a “buy” rating in a report on Friday, October 31st. UBS Group set a $300.00 price target on shares of Amazon.com in a research note on Friday, December 5th. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Amazon.com from $278.00 to $300.00 and gave the company a “buy” rating in a report on Friday, October 31st. Maxim Group raised their target price on shares of Amazon.com from $272.00 to $280.00 and gave the company a “buy” rating in a research report on Friday, October 31st. Finally, Susquehanna set a $300.00 price target on shares of Amazon.com and gave the company a “positive” rating in a research note on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $295.61.

Amazon.com Stock Performance

The stock has a market capitalization of $2.59 trillion, a P/E ratio of 34.27, a PEG ratio of 1.55 and a beta of 1.37. The stock’s 50-day simple moving average is $233.07 and its 200 day simple moving average is $228.15. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.01 and a quick ratio of 0.80.

Amazon.com (NASDAQ:AMZN) last released its quarterly earnings results on Thursday, October 30th. The e-commerce giant reported $1.95 earnings per share for the quarter, beating the consensus estimate of $1.57 by $0.38. The firm had revenue of $180.17 billion for the quarter, compared to analysts’ expectations of $177.53 billion. Amazon.com had a net margin of 11.06% and a return on equity of 23.62%. The business’s revenue was up 13.4% on a year-over-year basis. During the same period in the prior year, the firm earned $1.43 EPS. Research analysts expect that Amazon.com, Inc. will post 6.31 EPS for the current fiscal year.

Insider Transactions at Amazon.com

In related news, Director Jonathan Rubinstein sold 8,173 shares of the company’s stock in a transaction dated Friday, October 31st. The shares were sold at an average price of $250.03, for a total value of $2,043,495.19. Following the transaction, the director directly owned 80,030 shares in the company, valued at approximately $20,009,900.90. This represents a 9.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Daniel P. Huttenlocher sold 1,237 shares of the firm’s stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $226.61, for a total transaction of $280,316.57. Following the transaction, the director directly owned 26,148 shares in the company, valued at approximately $5,925,398.28. This represents a 4.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 79,734 shares of company stock worth $18,534,017. 10.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in AMZN. Fairway Wealth LLC lifted its holdings in Amazon.com by 113.2% during the third quarter. Fairway Wealth LLC now owns 113 shares of the e-commerce giant’s stock valued at $25,000 after purchasing an additional 60 shares during the last quarter. Sellwood Investment Partners LLC purchased a new position in shares of Amazon.com in the third quarter worth about $27,000. Carderock Capital Management Inc. bought a new stake in shares of Amazon.com in the second quarter valued at approximately $27,000. Maryland Capital Advisors Inc. raised its position in shares of Amazon.com by 81.9% in the second quarter. Maryland Capital Advisors Inc. now owns 211 shares of the e-commerce giant’s stock valued at $46,000 after purchasing an additional 95 shares during the period. Finally, Ryan Investment Management Inc. purchased a new stake in shares of Amazon.com during the 2nd quarter valued at approximately $48,000. 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.