Amazon.com (NASDAQ:AMZN) Shares Down 1.8% – Should You Sell?

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price dropped 1.8% on Wednesday . The company traded as low as $250.65 and last traded at $252.40. Approximately 32,102,082 shares changed hands during trading, a decline of 33% from the average daily volume of 47,943,445 shares. The stock had previously closed at $256.97.

More Amazon.com News

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

• Positive Sentiment: Amazon entered a long-term partnership with Qualcomm under which AWS could purchase up to $60 billion of AI data-center chips and related products through 2036. The agreement supports Amazon’s strategy of diversifying its AI hardware supply and scaling data-center capacity, although the warrants granted to Amazon give it potential equity upside in Qualcomm. Qualcomm’s AI Ambitions Get a Boost From Amazon Partnership
• Positive Sentiment: Prime Air is seeking approval to expand drone deliveries in Darlington, United Kingdom, after completing more than 500 trial flights. Wider deployment could improve delivery efficiency and strengthen Amazon’s logistics network. Amazon Moves Closer to Expanding Drone Deliveries Across the UK
• Positive Sentiment: Coverage highlighted accelerating AWS growth and argued that Amazon and Alphabet are beginning to show returns on their substantial AI infrastructure investments, easing concerns about capital spending.
• Positive Sentiment: Amazon is expanding AI products, including its Quick assistant on mobile, and is partnering with OpenAI to let selected U.S. brands advertise in ChatGPT. These initiatives could broaden software, advertising and commerce monetization. Amazon Gives OpenAI’s Ad Business a Boost
• Neutral Sentiment: Amazon is investing more than $230 million in Whole Foods employee pay and benefits. The spending may support retention and operations but could pressure near-term margins; reports also noted slowing momentum in Amazon’s physical-store business. Whole Foods Plans Over $230 Million for Worker Pay and Benefits
• Negative Sentiment: A fatal crash involving an aircraft operating for Amazon’s Prime Air network is likely to bring additional regulatory, safety and reputational scrutiny to its cargo operations. Amazon’s Aviation Network Faces a Sobering Test
• Negative Sentiment: Amazon’s heavy AI spending and recent sterling bond offering raise questions about leverage, returns on capital and cash flow. Possible changes to Ohio data-center tax incentives could also increase the cost of its nearly $40 billion regional buildout.

Analyst Ratings Changes

Several research analysts have recently commented on the company. Oppenheimer restated an “outperform” rating on shares of Amazon.com in a research report on Friday, July 31st. Jefferies Financial Group reiterated a “buy” rating on shares of Amazon.com in a report on Thursday, June 18th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $325.00 target price (up from $315.00) on shares of Amazon.com in a research note on Friday, July 31st. Benchmark raised their target price on Amazon.com from $370.00 to $400.00 and gave the company a “buy” rating in a report on Friday, July 31st. Finally, Bank of America lifted their target price on Amazon.com from $310.00 to $320.00 and gave the company a “buy” rating in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Amazon.com presently has an average rating of “Moderate Buy” and an average target price of $323.26.

Amazon.com Stock Performance

The stock has a market capitalization of $2.77 trillion, a PE ratio of 20.66, a price-to-earnings-growth ratio of 1.95 and a beta of 1.44. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. The stock has a fifty day moving average of $255.28 and a 200-day moving average of $244.04.

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. The company had revenue of $200.61 billion for the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.Amazon.com’s revenue was up 19.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.68 EPS. Equities analysts anticipate that Amazon.com, Inc. will post 8.05 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Andrew Jassy sold 20,000 shares of the firm’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $5,180,200.00. Following the sale, the chief executive officer owned 2,235,766 shares of the company’s stock, valued at $579,085,751.66. This trade represents a 0.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 14,541 shares of Amazon.com stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $259.06, for a total transaction of $3,766,991.46. Following the completion of the transaction, the chief executive officer owned 17,794 shares of the company’s stock, valued at $4,609,713.64. This represents a 44.97% 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. In the last three months, insiders sold 71,589 shares of company stock valued at $18,568,785. 8.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Amazon.com

A number of institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC raised its stake in Amazon.com by 10.9% during the 4th quarter. Brighton Jones LLC now owns 4,036,091 shares of the e-commerce giant’s stock worth $885,478,000 after acquiring an additional 397,007 shares in the last quarter. Revolve Wealth Partners LLC grew its holdings in shares of Amazon.com by 4.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 25,045 shares of the e-commerce giant’s stock worth $5,495,000 after purchasing an additional 986 shares during the last quarter. Bank Pictet & Cie Europe AG increased its position in shares of Amazon.com by 2.8% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,016,869 shares of the e-commerce giant’s stock worth $442,481,000 after purchasing an additional 54,987 shares in the last quarter. Highview Capital Management LLC DE lifted its holdings in shares of Amazon.com by 5.5% in the 4th quarter. Highview Capital Management LLC DE now owns 28,975 shares of the e-commerce giant’s stock valued at $6,357,000 after purchasing an additional 1,518 shares during the last quarter. Finally, Liberty Square Wealth Partners LLC acquired a new stake in shares of Amazon.com in the 4th quarter valued at about $2,153,000. Institutional investors and hedge funds own 72.20% of the company’s stock.

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company that operates online marketplaces and provides a broad range of consumer products and services. Its retail business sells merchandise directly to customers and enables third-party sellers to offer products through Amazon’s websites and applications. The company also operates physical stores and provides services such as digital content, subscriptions, and consumer devices, including Kindle and Echo products.

Amazon Web Services (AWS) provides cloud computing, storage, database, analytics, artificial intelligence, machine learning, and other technology services to businesses, governments, and organizations.