Amazon.com (NASDAQ:AMZN) Shares Down 1.3% Following Analyst Downgrade

Amazon.com, Inc. (NASDAQ:AMZN)’s share price traded down 1.3% on Wednesday 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 $202.49 and last traded at $204.2450. 65,216,221 shares changed hands during trading, an increase of 22% from the average session volume of 53,250,180 shares. The stock had previously closed at $206.96.

Several other research firms have also recently weighed in on AMZN. Morgan Stanley restated an “overweight” rating and set a $300.00 price target (down previously from $315.00) on shares of Amazon.com in a report on Friday, February 6th. Roth Mkm reiterated a “buy” rating and set a $295.00 target price (up from $270.00) on shares of Amazon.com in a research report on Monday, January 26th. Citizens Jmp raised their target price on shares of Amazon.com from $300.00 to $315.00 and gave the company an “outperform” rating in a report on Monday, February 2nd. KeyCorp set a $285.00 price target on shares of Amazon.com in a research note on Friday, February 6th. Finally, Deutsche Bank Aktiengesellschaft increased their price objective on shares of Amazon.com from $278.00 to $300.00 and gave the company a “buy” rating in a research report on Friday, October 31st. Fifty-five equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $288.60.

Insider Transactions at Amazon.com

In related news, CEO Andrew R. Jassy sold 19,872 shares of Amazon.com stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $216.94, for a total transaction of $4,311,031.68. Following the completion of the transaction, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Matthew S. Garman sold 17,768 shares of the stock in a transaction dated 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 sale, 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. In the last ninety days, insiders have sold 47,061 shares of company stock worth $10,351,262. 10.80% of the stock is currently owned by insiders.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Amazon is expanding Amazon Pharmacy’s same‑day prescription delivery to nearly 4,500 U.S. cities by year‑end, widening a higher‑margin services channel that can drive recurring revenue and deepen customer engagement. Amazon Pharmacy Expansion
• Positive Sentiment: The FCC approved Amazon’s plan to deploy thousands more LEO internet satellites, supporting long‑term growth for its Project Kuiper connectivity business and potential new revenue streams for AWS and retail services in under‑served markets. FCC Approval for LEO Satellites
• Positive Sentiment: Some analysts remain constructive — Arete raised its price target and several firms still rate AMZN a buy, providing support under the stock amid the pullback. Arete Research Raises PT
• Neutral Sentiment: Amazon is discussing an AI content marketplace to license publisher content for model training — a strategic initiative that could monetize data/licensing but carries execution and legal complexity. AI Content Marketplace Talks
• Neutral Sentiment: Amazon disclosed a roughly 5% stake in Beta Technologies (electric aircraft), a strategic VC‑style holding that signals climate/transport bets but represents capital allocation that may be immaterial to core earnings. Amazon Stake in Beta Technologies
• Negative Sentiment: Investor concern over Amazon’s massive $200B capital‑spend plan for AI and infrastructure — coupled with a narrow Q4 EPS miss — triggered a broad sell‑off, analyst downgrades and heightened volatility as the market re‑prices the near‑term hit to free cash flow. Barron’s: Selling Pressure/CapEx Concerns
• Negative Sentiment: Some institutional moves and analyst cuts (e.g., DA Davidson downgrade, Morningstar trimming positions, and pessimistic forecasts from other shops) add selling pressure and reduce near‑term support levels. Morningstar Trims Stake

Hedge Funds Weigh In On Amazon.com

Hedge funds have recently bought and sold shares of the business. Lifelong Wealth Advisors Inc. raised its position 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 valued at $402,000 after buying an additional 41 shares during the period. Financial Connections Group Inc. lifted its position in shares of Amazon.com by 2.6% in the fourth 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 in the last quarter. Marquette Asset Management LLC grew its position in Amazon.com by 5.1% during the fourth 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 in the last quarter. Barlow Wealth Partners Inc. lifted its position in Amazon.com by 0.4% in the 2nd quarter. Barlow Wealth Partners Inc. now owns 12,565 shares of the e-commerce giant’s stock worth $2,763,000 after buying an additional 44 shares in the last quarter. Finally, Western Financial Corp CA grew its holdings in shares of Amazon.com by 1.5% during the 4th quarter. Western Financial Corp CA now owns 3,076 shares of the e-commerce giant’s stock valued at $710,000 after acquiring an additional 44 shares in the last quarter. Institutional investors own 72.20% of the company’s stock.

Amazon.com Price Performance

The company has a quick ratio of 0.88, a current ratio of 1.05 and a debt-to-equity ratio of 0.16. The stock’s 50 day moving average price is $232.45 and its two-hundred day moving average price is $229.46. The firm has a market capitalization of $2.19 trillion, a price-to-earnings ratio of 28.49, a P/E/G ratio of 1.33 and a beta of 1.37.

Amazon.com (NASDAQ:AMZN) last issued its earnings results on Thursday, February 5th. 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 net margin of 10.83% and a return on equity of 21.87%. The firm had revenue of $213.39 billion during the quarter, compared to analysts’ expectations of $211.02 billion. During the same quarter last year, the firm earned $1.86 EPS. The business’s revenue for the quarter was up 13.6% compared to the same quarter last year. Analysts anticipate that Amazon.com, Inc. will post 6.31 EPS for the current fiscal year.

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.