Amazon.com (NASDAQ:AMZN) Stock Falls 1.1% After Analyst Downgrade

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price was down 1.1% during mid-day trading on Monday after Cantor Fitzgerald lowered their price target on the stock from $320.00 to $310.00. Cantor Fitzgerald currently has an overweight rating on the stock. Amazon.com traded as low as $259.27 and last traded at $259.53. Approximately 24,842,260 shares traded hands during mid-day trading, a decline of 47% from the average daily volume of 46,487,453 shares. The stock had previously closed at $262.43.

Other equities research analysts also recently issued research reports about the company. Robert W. Baird set a $310.00 price objective on Amazon.com and gave the company an “outperform” rating in a report on Friday, July 31st. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $325.00 target price (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Tigress Financial restated a “buy” rating and set a $385.00 target price (up from $315.00) on shares of Amazon.com in a report on Tuesday, October 6th. Piper Sandler restated an “overweight” rating and set a $320.00 target price (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Finally, KeyCorp upped their price target on Amazon.com from $335.00 to $350.00 and gave the company an “overweight” rating in a research note on Friday, July 31st. Fifty-six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $322.53.

Insiders Place Their Bets

In other Amazon.com news, SVP David Zapolsky sold 9,258 shares of Amazon.com stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the transaction, the senior vice president directly owned 41,190 shares in the company, valued at approximately $10,699,926.30. The trade was a 18.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,343 shares of the business’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $606,860.43. Following the completion of the transaction, the vice president directly owned 119,780 shares of the company’s stock, valued at approximately $31,024,217.80. The trade was a 1.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 71,589 shares of company stock worth $18,580,515 over the last 90 days. 8.90% of the stock is currently owned by corporate insiders.

More Amazon.com News

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

• Positive Sentiment: Amazon is reportedly in talks to acquire AI startup Decart for approximately $7 billion. Decart develops software that allows developers to switch between AI chips and is also building “world models.” The acquisition could strengthen Amazon Web Services’ chip flexibility, support its custom silicon strategy and improve its competitive position in AI infrastructure. The deal remains unconfirmed and could still collapse. Amazon in Talks to Buy AI Startup Decart for Around $7 Billion
• Positive Sentiment: Reports that Amazon and Nvidia are evaluating AI startup investments reinforce expectations of continued growth in AI-related cloud demand. Amazon’s AWS expansion and advertising business are also being cited as long-term earnings drivers. Why It’s Time to Load Up on Amazon Stock
• Positive Sentiment: Analyst sentiment remains favorable: Cantor Fitzgerald maintained an “overweight” rating while reducing its price target from $320 to $310, still implying substantial upside from recent trading levels. Other coverage highlights AWS’s large backlog and accelerating AI revenue. Amazon.com Price Target Lowered to $310
• Neutral Sentiment: Amazon is reportedly considering having outside investors finance roughly $8 billion of Nvidia AI chips through a special-purpose vehicle, then leasing the hardware back. The structure could reduce upfront capital requirements, but also underscores the scale of expected AI spending and infrastructure commitments. Amazon Wants Investors to Finance $8 Billion of Nvidia Chips
• Negative Sentiment: Investors remain concerned that Amazon’s substantial AI and data-center investments could pressure free cash flow, particularly if the Decart acquisition proceeds at a premium valuation. Reports of job reductions alongside aggressive AI spending may also raise questions about execution and workforce disruption. What Projected Job Cuts at These Two Mag 7 Firms Says About AI in 2027

Institutional Investors Weigh In On Amazon.com

A number of hedge funds have recently modified their holdings of AMZN. TOP Private Wealth LLC. bought a new position in shares of Amazon.com during the second quarter worth about $29,000. Bard Associates Inc. bought a new stake in Amazon.com in the 2nd quarter valued at approximately $32,000. Longfellow Investment Management Co. LLC bought a new stake in Amazon.com in the 2nd quarter valued at approximately $33,000. Atomic Invest LLC lifted its stake in Amazon.com by 41.2% in the 2nd quarter. Atomic Invest LLC now owns 168 shares of the e-commerce giant’s stock valued at $40,000 after acquiring an additional 49 shares in the last quarter. Finally, Lifetime Wealth Management P.C. acquired a new position in Amazon.com during the 4th quarter worth approximately $45,000. Institutional investors and hedge funds own 72.20% of the company’s stock.

Amazon.com Trading Down 1.1%

The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03. The business has a 50-day simple moving average of $258.83 and a two-hundred day simple moving average of $250.16. The stock has a market cap of $2.80 trillion, a price-to-earnings ratio of 20.88, a P/E/G ratio of 2.03 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN) last issued its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, topping the consensus estimate of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company had revenue of $200.61 billion during the quarter, compared to analysts’ expectations of $197.03 billion. During the same period last year, the business earned $1.68 EPS. The business’s quarterly revenue was up 19.6% on a year-over-year basis. As a group, research analysts forecast that Amazon.com, Inc. will post 8.03 EPS for the current year.

About Amazon.com

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon’s major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.