Amazon.com (NASDAQ:AMZN) Shares Down 2.2% on Analyst Downgrade

Shares of Amazon.com, Inc. (NASDAQ:AMZN) traded down 2.2% during trading on Thursday after Daiwa Securities Group lowered their price target on the stock from $300.00 to $280.00. Daiwa Securities Group currently has a buy rating on the stock. Amazon.com traded as low as $197.56 and last traded at $199.60. 83,152,871 shares were traded during mid-day trading, an increase of 53% from the average session volume of 54,289,598 shares. The stock had previously closed at $204.08.

Other research analysts have also issued research reports about the company. BNP Paribas Exane assumed coverage on Amazon.com in a research report on Monday, November 24th. They set an “outperform” rating for the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $265.00 price objective on shares of Amazon.com in a research note on Friday, February 6th. Morgan Stanley reiterated an “overweight” rating and set a $300.00 target price (down from $315.00) on shares of Amazon.com in a research report on Friday, February 6th. Canaccord Genuity Group set a $300.00 price objective on shares of Amazon.com and gave the stock a “buy” rating in a research note on Friday, October 31st. Finally, Sanford C. Bernstein restated an “outperform” rating on shares of Amazon.com in a research report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, fifty-four have assigned a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $288.60.

Insider Activity

In related news, CEO Douglas J. Herrington sold 2,500 shares of the company’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $233.22, for a total transaction of $583,050.00. Following the completion of the sale, the chief executive officer owned 505,934 shares of the company’s stock, valued at approximately $117,993,927.48. This represents a 0.49% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Matthew S. Garman sold 17,768 shares of the firm’s stock in a transaction that occurred on Friday, November 21st. The stock was sold at an average price of $216.90, for a total transaction of $3,853,879.20. Following the completion of the transaction, the chief executive officer directly owned 6,273 shares in the company, valued at $1,360,613.70. This trade represents a 73.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 47,061 shares of company stock valued at $10,351,262 in the last three months. Company insiders own 9.70% of the company’s stock.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: AWS CEO Matt Garman pushed back on AI-driven SaaS fears and called them “overblown,” signaling confidence in AWS demand and dampening concerns that cloud revenue will slow materially. AWS CEO Garman says software AI fears are ‘overblown’
• Positive Sentiment: Analysts and coverage note continued AWS momentum supporting Amazon’s expanding AI/cloud strategy — a core driver of revenue and long‑term margins. AWS Momentum Supports Amazon.com’s Expanding AI and Cloud Strategy
• Positive Sentiment: Operational growth: Amazon Pharmacy will expand same‑day prescription delivery to ~4,500 U.S. cities this year, extending reach and recurring revenue in healthcare. Amazon Pharmacy to expand same-day delivery to about 4,500 US cities and towns
• Positive Sentiment: Strategic investments: Amazon disclosed a meaningful stake in Beta Technologies (electric aviation), signaling longer‑term logistics and sustainability plays that could pay off if adoption accelerates. Amazon Is Betting Big on BETA Technologies Stock. Should You?
• Neutral Sentiment: Regulatory/strategic step: FCC approval to expand Amazon’s LEO satellite constellation increases TAM for connectivity but also implies significant near‑term capex and execution risk. Amazon gets FCC approval to launch 4,500 Leo internet satellites
• Neutral Sentiment: Analyst actions are mixed — some price targets bumped higher even as others cut; watch analyst notes for conviction shifts that could influence flows. Arete Research adjusts price target on Amazon.com
• Negative Sentiment: Investor fear over a reported $200B AI capex plan has triggered a sharp selloff — the market is fretting near‑term free‑cash‑flow pressure and execution risk from heavy AI spending. Why Amazon’s AI spending triggered the stock’s worst slide in over a year
• Negative Sentiment: Regulatory/legal risk: Italian tax police searched Amazon’s Milan offices in a new tax‑evasion probe, introducing potential legal/distraction risks. Italian tax police search Amazon in new tax probe
• Negative Sentiment: Sentiment and positioning: some large managers trimmed AMZN stakes and at least one analyst downgraded coverage as the market re‑prices AI capex risk — heightening volatility and downside near term. As Amazon ‘Scrambles to Catch Up,’ 1 Analyst Is Jumping Ship on AMZN Stock

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of AMZN. Lifelong Wealth Advisors Inc. boosted its stake in Amazon.com by 2.4% during the fourth quarter. Lifelong Wealth Advisors Inc. now owns 1,740 shares of the e-commerce giant’s stock worth $402,000 after buying an additional 41 shares during the period. Financial Connections Group Inc. boosted its position in shares of Amazon.com by 2.6% during the 4th quarter. Financial Connections Group Inc. now owns 1,633 shares of the e-commerce giant’s stock worth $376,000 after purchasing an additional 42 shares during the period. Marquette Asset Management LLC increased its holdings in Amazon.com by 5.1% in the 4th quarter. Marquette Asset Management LLC now owns 886 shares of the e-commerce giant’s stock valued at $205,000 after purchasing an additional 43 shares during the last quarter. Barlow Wealth Partners Inc. raised its position in Amazon.com by 0.4% in the second quarter. Barlow Wealth Partners Inc. now owns 12,565 shares of the e-commerce giant’s stock valued at $2,763,000 after purchasing an additional 44 shares during the period. Finally, Western Financial Corp CA lifted its stake in Amazon.com by 1.5% during the fourth quarter. Western Financial Corp CA now owns 3,076 shares of the e-commerce giant’s stock worth $710,000 after purchasing an additional 44 shares in the last quarter. Hedge funds and other institutional investors own 72.20% of the company’s stock.

Amazon.com Stock Down 2.2%

The business has a 50 day simple moving average of $231.89 and a 200 day simple moving average of $229.29. The company has a market capitalization of $2.14 trillion, a price-to-earnings ratio of 27.84, a PEG ratio of 1.33 and a beta of 1.37. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.05 and a quick ratio of 0.88.

Amazon.com (NASDAQ:AMZN) last posted its earnings results on Thursday, February 5th. The e-commerce giant reported $1.95 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.97 by ($0.02). Amazon.com had a return on equity of 21.87% and a net margin of 10.83%.The firm had revenue of $213.39 billion for the quarter, compared to analyst estimates of $211.02 billion. During the same period in the previous year, the company posted $1.86 EPS. Amazon.com’s revenue was up 13.6% on a year-over-year basis. As a group, equities analysts predict that Amazon.com, Inc. will post 6.31 earnings per share for the current fiscal year.

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.