Amazon.com (NASDAQ:AMZN) Shares Down 4.4% Following Weak Earnings

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price was down 4.4% on Thursday following a dissappointing earnings announcement. The stock traded as low as $220.38 and last traded at $222.69. Approximately 91,859,452 shares were traded during trading, an increase of 107% from the average daily volume of 44,387,152 shares. The stock had previously closed at $232.99.

The e-commerce giant reported $1.95 EPS for the quarter, missing analysts’ consensus estimates of $1.97 by ($0.02). Amazon.com had a return on equity of 23.62% and a net margin of 11.06%.The firm had revenue of $213.39 billion during the quarter, compared to analyst estimates of $211.02 billion.

Amazon.com News Roundup

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

• Positive Sentiment: Analysts have been upgrading Amazon and raising price targets on stronger AWS outlooks, supporting a bullish medium-term thesis for AMZN. Oppenheimer Raises Target
• Positive Sentiment: AWS deals and enterprise momentum remain a key upside driver — recent reports highlight multi‑year partnerships and analyst expectations for reacceleration in cloud revenue and margins. AWS Partnership Coverage
• Positive Sentiment: Amazon is expanding AI across devices and content: Alexa+ is being widely rolled out and the company is exploring deeper access to OpenAI models — moves that could lift engagement, Prime value and AWS/AI monetization long term. OpenAI/Alexa Report
• Neutral Sentiment: Investors are focused on Thursday’s Q4 print where AWS growth, AI-related spending and corporate cost cuts will determine whether the company can justify higher multiple expectations. The report is a likely near-term volatility trigger. Earnings Preview
• Neutral Sentiment: Amazon is testing AI tools for film/TV production and pushing Alexa+ to all U.S. users — strategic investments that could broaden margins over time but add near-term execution risk and CAPEX demands. AI in Content Production
• Negative Sentiment: Germany’s competition authority banned Amazon’s price‑control tools and ordered ~€59M returned, and regulators fined the company — a concrete hit to reputation and a modest financial cost that raises regulatory risk in Europe. German Antitrust Ruling
• Negative Sentiment: Continued layoffs and the announced Amazon Fresh closures (severance and store shutdowns) spotlight near‑term cost cuts but also signal restructuring headwinds that can pressure sentiment. Fresh Store Closures
• Negative Sentiment: Tech sector volatility driven by concerns about rising AI-related capex (after other mega-cap guidance scares) is pressuring Amazon alongside peers; that macro narrative increases the odds of a down move if Q4 guidance or capex plans disappoint. Tech Sell-Off Context
• Negative Sentiment: Smaller near-term drags — a reported Alexa+ subscription price change and European data center/power-grid delays — add execution noise that can amplify market reactions around earnings. Alexa Price Reaction

Analysts Set New Price Targets

A number of brokerages have commented on AMZN. Arete Research increased their price objective on Amazon.com from $264.00 to $283.00 and gave the company a “buy” rating in a research report on Wednesday, January 21st. BNP Paribas Exane initiated coverage on shares of Amazon.com in a report on Monday, November 24th. They issued an “outperform” rating on the stock. HSBC boosted their price objective on Amazon.com from $260.00 to $285.00 and gave the company a “buy” rating in a research report on Friday, October 31st. Pivotal Research boosted their price target on Amazon.com from $285.00 to $300.00 and gave the company a “buy” rating in a report on Friday, October 31st. Finally, Rothschild Redb cut shares of Amazon.com from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 18th. One investment analyst has rated the stock with a Strong Buy rating, fifty-four have given a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $296.37.

Insiders Place Their Bets

In related news, Director Daniel P. Huttenlocher sold 1,237 shares of the stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $226.61, for a total value of $280,316.57. Following the completion of the sale, the director directly owned 26,148 shares in the company, valued at $5,925,398.28. This represents a 4.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Andrew R. Jassy sold 19,872 shares of the stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $216.94, for a total value of $4,311,031.68. Following the completion of the sale, the chief executive officer directly owned 2,208,310 shares of the company’s stock, valued at approximately $479,070,771.40. The trade was a 0.89% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 47,061 shares of company stock worth $10,351,262. Company insiders own 9.70% of the company’s stock.

Hedge Funds Weigh In On Amazon.com

A number of large investors have recently modified their holdings of AMZN. Fairway Wealth LLC boosted its position in Amazon.com by 113.2% during the third quarter. Fairway Wealth LLC now owns 113 shares of the e-commerce giant’s stock worth $25,000 after purchasing an additional 60 shares during the period. Sellwood Investment Partners LLC purchased a new position in Amazon.com during the 3rd quarter valued at $27,000. MilWealth Group LLC lifted its position in Amazon.com by 79.0% during the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after buying an additional 79 shares during the period. Bridge Generations Wealth Management LLC grew its stake in shares of Amazon.com by 2,330.0% in the third quarter. Bridge Generations Wealth Management LLC now owns 243 shares of the e-commerce giant’s stock worth $53,000 after acquiring an additional 233 shares during the last quarter. Finally, Cooksen Wealth LLC increased its holdings in shares of Amazon.com by 23.5% in the 2nd quarter. Cooksen Wealth LLC now owns 247 shares of the e-commerce giant’s stock worth $54,000 after purchasing an additional 47 shares in the last quarter. 72.20% of the stock is currently owned by institutional investors.

Amazon.com Stock Performance

The business’s 50 day simple moving average is $234.09 and its two-hundred day simple moving average is $229.96. The company has a current ratio of 1.01, a quick ratio of 0.80 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $2.38 trillion, a PE ratio of 31.45, a price-to-earnings-growth ratio of 1.49 and a beta of 1.37.

Amazon.com Company Profile

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.