Amazon.com (NASDAQ:AMZN) Trading Down 3.1% – Here’s What Happened

Amazon.com, Inc. (NASDAQ:AMZN) traded down 3.1% during mid-day trading on Friday . The stock traded as low as $245.78 and last traded at $246.03. 55,301,674 shares were traded during trading, an increase of 14% from the average session volume of 48,326,977 shares. The stock had previously closed at $253.79.

Key Amazon.com News

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

• Positive Sentiment: Amazon unveiled an upgraded AI warehouse robot and is investing about €10 billion to expand its European fulfillment network, reinforcing its logistics edge and the potential for lower long-term operating costs. Article Title
• Positive Sentiment: Pinterest’s $4 billion AWS contract highlights continued demand for Amazon Web Services and supports the view that AWS remains a key growth engine for Amazon’s AI infrastructure business. Article Title
• Positive Sentiment: Several bullish commentary pieces argued that Amazon is undervalued relative to its AI, cloud, advertising, and custom chip opportunities, with analysts continuing to frame AMZN as a long-term AI winner. Article Title
• Neutral Sentiment: Amazon won a legal/regulatory victory at the NLRB over joint-employer claims tied to delivery service partners, removing one overhang but not materially changing the near-term growth outlook. Article Title
• Negative Sentiment: Reports that Amazon sellers are increasingly leaning on TikTok and other channels suggest pressure in parts of the marketplace ecosystem, which could signal softer seller loyalty and rising competition. Article Title
• Negative Sentiment: Amazon faces criticism from employees and local officials over massive AI data-center spending while layoffs continue, raising concerns about costs, labor relations, and political/regulatory scrutiny. Article Title
• Negative Sentiment: Rising shipping costs tied to global tensions ahead of Prime Day could squeeze margins during an important sales period, potentially tempering enthusiasm for near-term retail results. Article Title

Wall Street Analyst Weigh In

Several brokerages have commented on AMZN. Royal Bank Of Canada set a $320.00 target price on shares of Amazon.com and gave the stock an “outperform” rating in a report on Thursday, April 30th. Monness Crespi & Hardt upped their price target on shares of Amazon.com from $280.00 to $315.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Daiwa Securities Group decreased their price objective on shares of Amazon.com from $300.00 to $280.00 and set a “buy” rating for the company in a research note on Wednesday, February 11th. HSBC lifted their price objective on shares of Amazon.com from $280.00 to $310.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Finally, Robert W. Baird boosted their target price on shares of Amazon.com from $285.00 to $300.00 and gave the company an “outperform” rating in a research note on Thursday, April 30th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $312.52.

Amazon.com Trading Down 3.1%

The company has a current ratio of 1.18, a quick ratio of 1.01 and a debt-to-equity ratio of 0.27. The company has a market cap of $2.65 trillion, a PE ratio of 29.43, a P/E/G ratio of 1.87 and a beta of 1.44. The business’s 50-day simple moving average is $249.18 and its 200-day simple moving average is $232.89.

Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 EPS for the quarter, beating the consensus estimate of $1.63 by $1.15. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The business had revenue of $181.52 billion for the quarter, compared to analysts’ expectations of $177.28 billion. During the same period in the previous year, the company posted $1.59 EPS. Amazon.com’s revenue was up 16.6% on a year-over-year basis. As a group, analysts expect that Amazon.com, Inc. will post 7.71 EPS for the current fiscal year.

Insider Transactions at Amazon.com

In related news, SVP David Zapolsky sold 9,270 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $268.53, for a total value of $2,489,273.10. Following the completion of the sale, the senior vice president owned 41,190 shares of the company’s stock, valued at approximately $11,060,750.70. The trade was a 18.37% decrease in their position. The sale was disclosed in a 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 that occurred 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 owned 14,159 shares in the company, valued at $3,729,480.60. This represents 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. Over the last three months, insiders have sold 195,774 shares of company stock worth $51,614,434. 8.90% of the stock is owned by company insiders.

Institutional Trading of Amazon.com

Several large investors have recently added to or reduced their stakes in AMZN. Norges Bank bought a new stake in shares of Amazon.com during the 4th quarter worth about $32,868,735,000. Auto Owners Insurance Co raised its stake in shares of Amazon.com by 27,376.7% in the 4th quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant’s stock valued at $2,272,397,000 after acquiring an additional 98,090,585 shares in the last quarter. J. Stern & Co. LLP lifted its holdings in Amazon.com by 20,598.0% in the 4th quarter. J. Stern & Co. LLP now owns 87,982,814 shares of the e-commerce giant’s stock worth $20,308,193,000 after purchasing an additional 87,557,736 shares during the last quarter. Nuveen LLC bought a new stake in Amazon.com during the first quarter worth approximately $11,674,091,000. Finally, Cardano Risk Management B.V. boosted its position in Amazon.com by 879.4% during the fourth quarter. Cardano Risk Management B.V. now owns 27,862,400 shares of the e-commerce giant’s stock worth $6,431,199,000 after purchasing an additional 25,017,588 shares during the period. 72.20% of the stock is owned by institutional investors.

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.